177. People's budget

177. People's budget

Lloyd George wasn't going to be able to fund his ambitious plans for social reform by simply cutting expenditure elsewhere in government, specifically on defence. Instead he was going to have to cover both social assistance and defence.

That meant that he was going to have to raise the money from taxation. His answer was a 'people's budget'. It included a tax on value gained from selling land, and some dramatic innovations in income tax, which would certainly increase its burden.

That raised a heck of a lot of hackles, especially among the wealthy, which included most of the membership of the House of Lords. For a while, the government believed that the Lords would respect the convention, in force for over two centuries, whereby the Lords left 'money bills' alone.

Not this time. They refused to adopt the Finance Bill until the issue had been tested with the electorate. So Asquith and Lloyd George would be going to the country looking for a popular endorsement of the measures in the 'People's Budget'.


Illustration: The ‘terrible twins’: David Lloyd George (left) and Winston Churchill, the radicals of time of the People’s budget. Public Domain

Music: Bach Partita #2c by J Bu licensed under an Attribution-NonCommercial-No Derivatives (aka Music Sharing) 3.0 International License.


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