FOOD SUBSIDIES
SIR,—I was surprised to see you advocating (in The Spectator of January 14th) a halt to the continual rise in food subsidies—now running at £500,000,000 a year. Surely it is the policy of the Government, and rightly, that our present economic burdens should be distributed equitably over the whole nation. If every rise in the price of imported food were passed on to the consumer, the burden would vary inversely with income—the poor feeling it more than the rich. On the other hand, by increasing the subsidies to keep pace with rising prices and then financing the subsidies from direct and indirect taxation, the Chancellor ensures that people contribute according to their means, and that hardship is not inflicted unduly upon any one section of the community. To counteract the inflationary pressure exerted by this £500,000,000 it is always open to the Chancellor to seek more revenue from new taxation. Those who profess interest in a sound fiscal policy would therefore do better to press Sir Stafford to raise once again the level of income-tax.—I am, Sir, yours faithfully, M. ATTYAH. Blackland, Bush Lane, Send, Surrey.
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