THE BRITISH BUDGET.

Ashburton Guardian, Volume XLV, Issue 10386, 4 May 1925, Page 5

THE BRITISH BUDGET.

OBJECTION TO SILK DUTY. MR CHURCHILL IN REPLY. LONDON, May 2. Mr Churchill, addressing the Primrose League at Albert Hall, said his Budget consisted of a series oi care-fully-adjusted balances. The tax.on silk would produce exactly £4,000,000 this year, and £7,000,000 next year which would precisely meet the cost of relief given on earned income to smaller taxpayers. He was confident the silk tax would not diminish employment, and would be paid by an enormous number of people m inconceivably small instalments. Women, it convinced it was for the country e good, would not hesitate to assume the burden of the tax. Another balance in the Budget was that the Mckenna duties would fully defray the cost of Imperial preference. „:„i,+'Referring to the previous nights scene in the House of Commons, Mr Churchill vigorously assailed the Labour critics. Mr Snowden had said it was a rich man's Budget Let bun and his Socialist friends say that at the „ew year to 200,000 widows who then would be drawing pensions, also to the six millions who were assured of pensions, or say to the old-age, pensioners: -Comrades, we meant to give you these on a non-contributory basis, but we had to go and help our Russian friends first." "The Silk Stocking Budget."

An outcry has developed over the whole country against Mr Churchill s proposed silk duty, which has resulted in the Budget being nicknamed Ihe Silk Stocking Budget,, •In consequence oi the outcry the Treasury yesterday issued a statement to the effect that the criticisms will be considered, and the export trade be consulted. ■ It is now declared it was nevei intended that because- an article contained a little silk it was to be taxed to the extent of one-third or ite value There is an immense range of goods in which a small proportion of silk is employed, and it is admitted that the effect of imposing a tax of one-third on the full value of such articles would make the duty highly protective. It is understood that Mr Churchill has been in consultation with the Customs authorities, a result of which will be a system of charging calculated to carry out Mr Churchill's real intentions.

Pointed Remarks. The most pointed criticism of the silk duty came in the House of Commons from Miss Wilkinson who declared that artificial silk had taken the place among working women of wool, which they cannot afford to buy. it was largely used for knitted jumpers which women made themselves and one pound at 3s was sufficient foi a Pamper. She proceeded to argue that a tax of 3s per lb meant a 100 per centum increase, but a tax of 4s ner lb on the heavier silks used by rich women meant only a 66 2-3 per centum '*oK£ning stockings, Miss Wilkinson said a tax of 6d might be a matter of indifference to women who bought stockings at two guineas a pair, bur tmeaft a 33 1-3 per cent increase to women who bought artificial silk stockings at Is 82(1 a pair p . Lord Oxford, speaking at G asgow yesterday, declared that the Silk tax was a tax upon the raw material ot a great industry. n„*Aiff Sir Alfred Moid, speaking,at Cardiff, asked: "Why destroy one of the tew prosperous industries which the country had p Tt was a mystery who advised Mr Churchill to take such a stupid step, and he was certain Mr Chirrchill would he obliged to abandon such a proposal." Provision for Preference.

The "Morning Post," in an editorial dkcuasing the Budget's provision for preference, says that when this system once is working it will make practicable comprehensive migration within the Empire for which we have waited for so long. Although the Budget makes no provision for such migration its every line shows the necessity tor it for the new insurance means an added charge on industry already burdened bv over a million unemployed. The leader incidentally suggests the immediate modification of the Portuguese Treaty to enable Australia and South Africa to label their wines as P °Mr Churchill's Budget lias been the subject of an increasing volume of criticism during the week-end The chief points of attack are the silk and the added burdens to industry m consequence of the extension of the insurance scheme. " Reynold s News so far as to say that the silk duty will be withdrawn and the insurance proposals will he .modified postponed, or withdrawn entirely. The effect ol such withdrawals would bo to cut the bo-art out of the Budget entirely. I There is no doubt, however, of the Budget proposals undergoing a review nt the Treasury, and modifications ot the original proposals are not iinlikely Mr I L Garvin, divcussmg the I3w!in the "Observer," says Great Britain has been kept down by unexampled taxation. No mortal man coub put this situation right by one hrsBudget. The work can only be don' bv a connected series of Budgets. Lnr nation never had a clearer or srrave; duty than to strengthen the hands o | its Chancellor.