The budget was certain to show a surplus and taxation could be remitted. Yet as events proved, it was the budget that would sow dissension, override other legislative concerns and signal a new political movement. Charles Thomson Ritchie's remission of the shilling import-duty on corn led to Joseph Chamberlain's crusade in favour of tariff reform. These were taxes on imported goods with trade preference given to the Empire, to protect British industry from competition, strengthen the Empire in the face of growing German and American economic power, and provide revenue, other than raising taxes, for the social welfare legislation. As the session proceeded, the rift grew in the Unionist ranks. Tariff reform was popular with Unionist supporters, but the threat of higher prices for food imports made the policy an electoral albatross. Hoping to split the difference between the free traders and tariff reformers in his cabinet and party, Balfour favoured retaliatory tariffs to punish others who had tariffs against the British, in the hope of encouraging global free trade. This was not sufficient for either the free traders or the extreme tariff reformers in government. With Balfour's agreement, Chamberlain resigned from the Cabinet in late 1903 to campaign for tariff reform. At the same time, Balfour tried to balance the two factions by accepting the resignation of three free-trading ministers, including Chancellor Ritchie, but the almost simultaneous resignation of the free-trader Duke of Devonshire (who as Lord Hartington had been the Liberal Unionist leader of the 1880s) left Balfour's Cabinet weak. By 1905 few Unionist MPs were still free traders (Winston Churchill crossed to the Liberals in 1904 when threatened with deselection at Oldham), but Balfour's act had drained his authority within the government.
The budget was certain to show a surplus and taxation could be remitted. Yet as events proved, it was the budget that would sow dissension, override other legislative concerns and signal a new political movement. Charles Thomson Ritchie's remission of the shilling import-duty on corn led to Joseph Chamberlain's crusade in favour of tariff reform. These were taxes on imported goods with trade preference gi.ven to the Empire, to protect British industry from competition, strengthen the Empire in the face of growing German and American economic power, and provide revenue, other than raising taxes, for the social welfare legislation. As the session proceeded, the rift grew in the Unionist ranks. Tariff reform was popular with Unionist supporters, but the threat of higher prices for food imports made the policy an electoral albatross. Hoping to split the difference between the free traders and tariff reformers in his cabinet and party, Balfour favoured retaliatory tariffs to punish others who had tariffs against the British, in the hope of encouraging global free trade. This was not sufficient for either the free traders or the extreme tariff reformers in government. With Balfour's agreement, Chamberlain resigned from the Cabinet in late 1903 to campaign for tariff reform. At the same time, Balfour tried to balance the two factions by accepting the resignation of three free-trading ministers, including Chancellor Ritchie, but the almost simultaneous resignation of the free-trader Duke of Devonshire (who as Lord Hartington had been the Liberal Unionist leader of the 1880s) left Balfour's Cabinet weak. By 1905 few Unionist MPs were still free traders (Winston Churchill crossed to the Liberals in 1904 when threatened with deselection at Oldham), but Balfour's act had drained his authority within the government