Sir Donald Maclean justly pointed out, in the brief debate
which followed, that the Government had been unduly opti- mistic anclshould have faced the facts sooner. Many firms were Paying their income-tax by borrowing from the banks on the Prospect of recovering excess profits duty. Had the Govern- ment abolished that duty a year sooner, they would have been spared the necessity of repaying tens of millions to recoup firms for heavy losses which had wiped out all their excess profits. We are glad that Sir Robert Home admits that his Budget was illusory, for the Government will now have to make a really serious effort to reduce expenditure. The limits of taxation have been reached. Commerce and industry can bear no higher burdens and will, indeed, be hard pressed to pay the existing taxes. Strict economy affords the only way out.
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