On the second reading of the Finance Bill in the
House of ;Commons on Tuesday, Mr. Chamberlain defended himself
against the charge of hiving failed to reduce expenditure. He hadahe said, effected &reduction of £822,000,000 on the Esti- mates as compared with those of last year. The Civil Service Estimates, apart from £120,000,000 for war pensions, amounted to £480,000,000, or 150 per cent.. more than before the war. The increase, he thought, was not disproportionate in view of the rise in prices. He saw no means of reducing the total unless the breed subsidy of £45,000,000 were stopped. He discussed various suggestions for raising money. Long-dated annuities, he said, would not be a cheap way of funding, the Debt at the present high price of money. He disapproved of a forced loan as a variant of a levy on capital. A graduated tax on profits would involve the valuation of the capital in every businces. He could not impose a Corporation Tax of 5s. 6d. in the pound,as a substitute for the Excess Pni.fits Duty. Mr. Chamberlain added that if by a levy on "war wealth" he could raise £500,000,000, he would reduce the Excess Profits Duty from 60 to 40 per cent., and would "see his way to the rapid extinction " of the duty " by a couple of stages perhaps."
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