535 



The estimate for 1912-13 amounted to 187.1 millions, the borrowing for capital ex- 

 penditure being about 2.9 millions, principally for telegraphs and telephones. On 

 1908-9 there was a budget deficit of 714,000, but on the combined years 1909-10-11 

 there was a surplus of 5.6 millions, and on 1911-12 a surplus of 6.5 millions. The 

 figures already given show that the relation between revenue and expenditure in 1912-13 

 was tighter; but trade was favourable, the revenue returns showed much elasticity in 

 certain directions, and yet expenditure, as has been shown, had not ceased to grow. 

 These figures show plainly that this was a critical time, when the due working of the 

 Treasury was much disturbed. An account of Mr. Lloyd George's budget of 1909-10 

 and its changes in taxation will go far to account for that disturbance, especially as the 

 Budgets of succeeding years made no changes of importance in the revenue laws. 



The Finance Bill of 1909 was introduced on May 26th (after the discussions on the 

 Budget statement of April 3oth), and was read a third time on November 4th, only 

 to be rejected on the 3oth by the Lords, who wished to have it submitted 

 The Finance to the country. The budget statement anticipated a total revenue of 

 BUl, 1909-w, 162.5 millions, as against 151.5 realised for 1908-9. The actual revenue 

 proved to be 131.6 in 1909, consequent upon the rejection of the Bill by 

 the Lords; for the custom of collecting the Income Tax and tea duty, which are annual 

 taxes, on the authority of a resolution of the House only, had to be suspended, -a 

 custom judicially declared since (Nov. 1912) not to have any legal warrant. Some 30 

 millions of the huge revenue of 1910-11 was, therefore, arrears of the revenue of 1909-10. 

 After the general election of January 1910, which maintained the government in office, 

 the Finance Bill (1909-10) was reintroduccd on April 2oth and the Lords agreed to it 

 without amendment on April 29th. There was a second Finance Act of 1910, the 

 ordinary one for the year, but it made no change in revenue laws. 



According to Mr. Asquith (May 5th) the budget of 1909 contained proposals ade- 

 quate for the year, and for the prospective necessities of years to follow, without deviat- 

 ing from the principles and practices of free trade, and without imposing 

 additional burdens upon the necessaries of the people. The Chancellor of 

 Bill, 1909-10. the Exchequer, too, on the third reading (Nov. 4th) said that the taxes had 

 been arranged to meet the requirements not only of the year, but also of 

 the future. A summary of the provisions for new taxation may now be given, by which 

 it was proposed to increase the revenue, while at the same time 35 millions were saved 

 by reducing the Sinking Fund by that amount. 



Beer duty was increased from 8s. to 8s. 3d. per barrel: Spirits, home from us. to 143. 

 9d. per proof gallon, and imported from us. 4<i. to 153. id: Tobacco, 8d. per Ib. added to 

 35. with adjustments in Ireland and Scotland, and on cigars, &c: Motor Spirit 3d. per 

 gallon, with certain rebates: Liquor Licences were increased, and the whole code reframed. 

 Motor Car Licences were also increased, and graduated according to horse-power. 

 Estate and other inheritance duties were revised again more severely; especially the scale 

 on Estates exceeding 5,000 in value: Settlement Estate Duty was increased from i to 

 2 per cent, and powers of disposition were amended: the rates of Legacy and Succession 

 duties were made higher. In Stamps the duties were doubled on Conveyances and 

 Leases, and on Bearer securities, while those on Contract notes were increased and 

 graduated from 6d. to i according to the amount in question. The Income Tax was 

 raised from is. to is. 2d. in the , and abatements on the income of those resident out of 

 the United Kingdom abolished. A Super-Tax of 6d. was imposed on incomes over 

 5,000, assessable on so much as exceeds 3,000. On the other hand the concession of a 

 rate of is. in the on earned incomes which exceed 2,000 but not 3,000 extended this 

 innovation regarding earned incomes (this in 1910-11 was a concession which involved 

 87,500): there was an allowance of 10 on the assessment for every child under 16 on 

 incomes between 160 and 500; and additional relief was granted under Schedule A 

 on account of the cost of maintenance, repairs, insurance, &c. The chief novelty of the 

 Budget was the Land Value Duties, the provisions respecting which are somewhat com- 

 plicated with regard to assessment, which also involved a scheme for securing a valua- 



