THE BUDGET IN ITS FINAL SHAPE.
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The Completion of the Report Stage of the Finance Bill, 1926, and the Result of the Discussion upon the Amendments of the Scale of Motor Taxation.
By Our Special Parliamentary Correspondent.
PARLIAMENT said the final word on the new scale of taxation when the House of Commons completed the report stage of the Finance Bill. As was stated in these columns, after the introduction of the Budget, there was but faint hope of making any important changes in the Chancellor of the Exchequer's proposals, although one expected more adequate discussion of the new scales than has actually taken place either in Committee or on report.
The private deputations to Mr. Churchill, no doubt, convinced most of the intereSts affected that any attempt to dissuade him from this easy method of substantially augmenting the revenue would be hopeless.Nevertheless, a heavy increase of taxation on important branches of internal transport and trade at least deserved full consideration, although it did not receive a twentieth part of the attention given, to a 16F., per cent. import duty on wrapping paper.
The friends of foreign paper in the House of Commons are many, whilst the friends of British transport vehicles are few and inarticulate. There was, of course, a party issue in paper, but on merits the subject of motor taxation ought to have been discussed at some length.
One or two expressions of opinion and one or two minor alterations sum up the House of Commons proceedings, the whole business being drowned in the insistent cry of "damage to the roads." This slogan was used with magical effect and obviated argument and references to railway interests or anything else. The Government itself, many members on both sides in. complete sympathy with the private motorcar user, those • influenced by the call of local authorities for relief, and the supporters of tramway and railway enterprises accepted the new rates as a matter of course and silently blessed them I
Moral v. Political Distractions.
Much eloquence and time were spent on the moral implications of the tax on betting and the iniquities of a fourpenny tax on tea, although nobody ever thinks of pointing out that oceans of good ten are poured into the sink every day by the oppressed tea consumer. Stabilization of Imperial preference and the mysteries of income-tax also took up much time. The Road Fund certainly had a small place in the debates, but opponents of the raid were disarmed by the relative smallness of the diversion after the general anticipation that the ammmt to be taken by the Treasury would be nearer 117,000,000 than £7,000,000, whilst the element of future growing revenue for the Road Fund also gilded the pill. On the whole Mr. Churchill, in the conduct of this year's Budget as well as the last, has shown himself one of the most audacious and ingenious finance ministers of recent times, and he has passed his Budget practically unaltered. It is this fact that arouses the expectation in many quarters that he may yet revolutionize the present system of motor taxation by carrying his promised exploration of the subject of a petrol duty to a practical conclusion. Nobody knows. He has recently been interrogated as to his intentions, but he declines to add anything to what he said in presenting the Budget. The general feeling is that the objections to a petrol duty are not insuperable— as has been so often urged.
Amendments and Concessions.
After the interesting and exhaustive article by Mr. Shrapnell-Smith which appeared in the issue of the 6th inst., it is unnecessary to do more than indicate the final shape of the provisions of the Finance Bill affecting road-transport interests.
Clause 3, which brings commercial vehicles and parts under the M'Kenna import duty of 33-i per cent., remains unaltered and is in operation as from May 1st,' 1926.
Clause 13, the operative clause for the First Schedule which contains the new scales of taxes which come into effect on January 1st, 1927, remains unamended.
Clause 14, requiring claims for repayment to be made within the year following the year for which the licence is taken out, stands in its original form.
Clause 40, which reserves to the Treasury one-third of the proceeds of the taxes on motorcars and cycles, is unaltered, and Clause 41, which transfers 17,000,000 from the existing balance of the Road icund to the Exchequer, also remains in its original form.
Rebate to Travelling Showmen.
Schedule 1 has not been amended in respect of the hackney rates, or the rates for tractors, road locomotives, and other haulage vehicles except to give a rebate of the increase on haulage vehicles, other than agricultural, to travelling showmen. The new proviso is in the following terms :— " If any person proves to the satisfaction of the authority charged with levying, the duty—(a) that he has paid in respect of a licence for any vehicle the duty chargeable under this sub-paragraph ; and (b) that the vehicle has during the currency of the licence been used by him solely for the purposes of his business as a travelling showman ; and (c) that he has during the currency of the licence complied, in relation to the vehicle, with any regulations which may be made by the Minister of Transport for the safeguarding of roads from the damage which might otherwise arise from the use of such vehicles, he shall be entitled to repayment of an amount equal to the difference between the amount paid as duty under this sub-paragraph and the amount which would have been payable in respect of a licence for that vehicle if this Act had not passed, and the provisions of Sub-section (2) of Section 14 of this Act shall apply as if he were entitled to a repayment in respect of an overpayment of duty."
Fifty per cent. Reduction for Electric Vehicles:
The fifth sub-section of the Schedules containing the commercial-vehicle rates, is given below in its anaended form:— Vehicles (including tricycles weighing more than 8 cwt. unladen) constructed or adapted for use and used for the conveyance of goods or burden of any description whatever in the course of trade or otherwise :— Being vehicles which are electrically pro pelt& not exceeding 25 cwt. in weight Exceeding 25 cwt, but not exceeding 2 tons in weight unladen £13 Exceeding 2 tons but not exceeding 3 tons in
weight unladen ... £20 Exceeding 3 tons but not exceeding 5 tons in
weight unladen ... £24 Exceeding 4 tons but not exceeding 5 tons in weight unladen ... • • • 127 Exceeding 5 tons in weight unladen ... 130 With an additional duty, in any case, if used
for drawing a trailer, of ... £6 Being vehicles other than electrically propelled vehicles—
Not exceeding 12 cwt. in weight unladen ... 110 Exceeding 12 cwt. but not exceeding 1 ton in weight unladen ... ... ...
Exceeding 1 ton but not exceeding 2 tons in weight unladen ... ... ... ... £26 Exceeding 2 tons but not exceeding 3 tons in weight unladen ... .., ... ... 140 Exceeding 3 tons but not exceeding 4 tons in weight unladen ... ... ... ... 148 Exceeding 4 tons but not exceeding 5 tons in weight unladen ... ... ...
Exceeding 5 tons in weight unladen ...
With an additional duty, in any case if used for drawing a trailer, of ... ... ... £6
Amendments Explained.
The concession in respect of travelling showmen's tractors or locomotives was raised on the Committee stage by Lieut.-Commander Kenworthy and a promise then made by the Chancellor of the Exchequer that the matter would be considered before report. Col. Ashley explained on report that under the new arrangement if the showman showed that he had been working his show during the year and had paid for his licence, and that the tractor had been used solely for the purpose of his business, and if he had fulfilled other requirements of the regulations, to be issued by the Minister of Transport, he would be able to obtain a rebate equal to the extra amount paid by him under the increased scale of the 1926 Finance Act.
From the terms of the paragraph the repayment will be made at the end of the licensing period, and no proceedings can be brought for enforcing any repayment later than the end of the year following the year in respect of which, or of part of which, the licence was taken out. The regulations will, among other things, require that the tractor or locomotive must be fitted with rubber tyres, and already 90 per cent, of showmen's tractors are so fitted as the result of representations made by the Minister of Transport to the Showmen's Guild a year ago. Certain restrictions will be imposed as to the hours of day or night when those vehicles may travel on the roads if the rebate is to be claimed. The advantage aimed at in restricting travelling hours to night and early morning is that less damage will be done to the roads during those hours than in the heat of day-time in summer, when road surfaces are soft.
Lieut.-Commander Kenworthy expressed the thanks of the showmen for the concession and gave an assur
ance that they were prepared to co-operate with the local authorities as to the time they ought to travel and the roads they should take.
Municipal Vehicles.
The new scale of electrically propelled vehicles whereby a 50 per cent. reduction is made on the ordinary rates is designed specially to relieve local authorities who use some 3,500 of those vehicles. Another effort was made on the report stage by Mr. A. V. Alexander tO get local authorities exempted from any increase whatever in respect of municipal vehicles used for the removal of refuse and the cleansing, watering and repairing of streets. This was again resisted by the Government as it had been on the Committee stage, and rejected by 178 votes to 94.
Col. Ashley's reasons were those stated by him in Committee. He said the real thing they had to consider was the damage done to the roads and whether the owners were municipal authorities or private individuals made no difference in that respect. He pointed out that under the Bill they had to find considerably increased sums for road purposes and for rural roads, and unless they had the extra revenue it would be impossible to meet those new grants. The reduction on electrically-propelled vehicles would sensibly relieve the local authorities, and to that extent their legitimate claims were being met.
Light Commercial Vehicles.
Major Crawfurd made a brave attempt to convince the Government that if they extended the £10 rate for 12-cwt. vehicles to 15-cwt. vehicles the use of light commercial vehicles would be greatly encouraged and a great stimulus given to this branch of the motor trade, whilst the retail tradesman would be helped. Colonel Ashley, against the promptings of his heart, as he would have had the House believe, could not agree to this concession as it would cost the Exchequer £60,000. Major Crawford's proposal was defeated by 174 votes to 66. The other concession was the reduction of. the trailer tax from £10 to £6, that is from five times to three times the present rate of £2. One other amendment moved on the report stage was designed to exempt from the increases vehicles used solely for the conveyance of employed persons to and from the place of employment. The proposal was made chiefly in the interests of miners, but was resisted on the ground that they had to consider the damage to the roads and not the people who used those vehicles. The amendment was rejected by 193 votesto 113. An amendment seeking to give a 20 per cent. rebate to vehicles used for the conveyance of foodstuffs was ruled out of order on the ground of its indefiniteness.