BUDGET PLANS.

Auckland Star, Volume LXII, Issue 215, 11 September 1931, Page 7

BUDGET PLANS.

MAKING ENDS MEET.

Cuts in Income from Workless fTq Cabinet Ministers.

RELIEF FOR INDUSTRY.

(British Official Wireless.)

u (Received 12.30 p.m.) ' ""- RUGBY, September 10. In. the House of Commons, the Chancellor, of the Exchequer, Mr. Philip Snowden, opened the supplementary Budget embodying the proposals of the National Government for dealing with the financial emergency. His speech lasted for an hour and a quarter. By the proposals ior economies and new taxation the estimated deficit for the present financial year ending next March of £74,500,000, has been changed into an estimated surplus of £1,500,000. The economies total £70,000,000 in the full year and £22,000,000 in the present y*h ;:.';.. ;/ ; -; : ' T^f^udj^t,jroyjdes for the raising ;of in additional £39,000,000 this year and £80,000,000. in a full year by additional taaj#oai;. ; ,-. ■■'■_ \ ■'■■ ; ._ Y . Thfe. standard rate* of the income tax tae;been=raised by 6d to 5/ in the £, and there vis an increase of 10 per cent In the amount payable as surtax on Iteomes of ovef £2000. Belief for industry, roughly offsetting the increase in - the standard rate and which it is hoped will encourage the replacement oi. old plant, is given by neaM of increases of the existing allow* aaeei for depreciation. personal allowance for married inenie reduced from £225 to £150; for Bngle men from £235 to £100, and allowances for children from £60 to £50 for the first, and £50 to £40 for the' second. These are the chief factors in determining exemptions. The limit of allowances in respect to **ni«d income, however, has been inercteed from one-sixth, on a maximum of £250, to one-fifth, on a maximum of #00. Under the provisions of the laet Budget tie first £250 of taxable income I»4 at four-ninths of the standard rate. It ie iow provided that a tax will be levied at half the standard rate only on the first £175 of taxable income. The GMjiges in income tax are estimated to m. £29,000,000 this year and £57,500,MOaextyear. Beer and Tobacco Hard Hit. fISnAA* f4 ' 500 >0° 0 this year and "",000,000 next year are expected from !u^i reafie °* one P enn y P er P m t in Wfifti^ 0U beer> and and »iW»,000 respectively are expected •??* an of 8d a pound on WMMo.. . An increase of 2d per gallon # Te £4 »000»000 this year and a full year. the figures of the threatened deficit for the current year, Mr. Wowden reminded the House of the BW6 Warning he had given in February eve of. the adjournment y™*» in July regarding the Budgetary position. g Trade Depression Results. xtiu de P ressi on had reduced the '""I'M taxes and at the same time in- ]"**& national expenditure. National wmeiad been falling and while seven PJ 8 . ago the unemployment fund had its way and paying off debt, "us year U was costing the Exchequer »wut £100,000,000. j^ , Snowden explained that the Gov"™ment had decided that borrowing for and road funds must ■«?& zT£ h this Evolved an addition oi mooo,ooo to the votes for the year. (JJejjrtJi* fall in revenue at £29,000,«fe*S°o.ooo of inland revenue and Gustoms aM ex cise duty. The pension of the war debt payments Zrtw^ re / id6nt Hoover's plan had DkS d for a loßs of £30,000,000. SupC - r I estimates of £1,000,000 £lK^ e total t0 £94,000,000, less bS!?°°2 Bayed on tho interest and fund of the American debt, zmm!* total deficit tMs year frS 6 e i anc€llor estimated the deficit made, • if no changes are revenue" 1 a Present provisions for nSS ? ex P endit ure ) at £170,000,000. w i. ge *c onom ies were essential Th'p" «a, t- e eaVT increases in taxation, g .country must face up t0 th€ posi . in or economy were given not ff Kf Pap s and Mr - Snowden did the Ef i o^* B,llß ' but he emphasises Proposed W?v nine - tenths of items byS iff d T be t n ad °P tea and approved 4S tiot^r Cabinet be^re its witg S s • The economies, together fuSf rn S C iS t0 the sinking yea?:'?^ ooo ' to £32,500,000 thil ir?', 16 " the Chancellor with «&ooo c f l or tte . current y ear of tionTS+J? be p^ovided for bv addi " ""ai taxation w already detailed.

Economy Proposals. The Government's economy proposals as set out in the White Paper will secure reductions in expenditure estimated at £22,000,000 in the current financial year, and a saving of £70,032,000 in a full year. The largest saving effected under the heading oi unemployment insurance ie a reduction in the expenditure from the Unemployment Fund, which amounts in a full year to £25,800,000, and the income of the fund is supplemented by increases in the contributions of employers and. workmen, aggregating £10,000,000. This result is mainly achieved by a reduction of the weekly benefit rates, except that for dependent children, 10 per cent. The benefit for unemployed single men ia thus reduced from 17/ to 15/ a week. Corresponding cuts are being mad© in the other rates. The saving from this reduction would be £12,800,000. The increase in the weekly contributions of employers and employees and the Exchequer cut of 10 per cent, with the corresponding increases in the other classes of contributor and the limitation of benefit to 26 weeks followed by a transfer to the provisional class, produce £10,000,000. The removal of anomalies effect £15,000,000, making a saving to the Exchequer amounting to £35,800,000. * Other- economies include salaries of Ministers and members of Parliament, Civil Servants, members of the services and amount to over £4,500,000. Regarding salary reductions, Ministers will receive reductions ranging to 20 per cent in cases of. £5000 and over, and to 10 per cent in cases of under £2000. The allowances of members of the House of Commons will be reduced 10 per cent. Regarding the defence services economies of £5,000,000 will be made, exclusive of the saving on pay and pensions. It is recognised that this will be difficult i in. view of the reductions made during the recent year. . r ; With regard to education, a 15 per cent, cut in teachers' salaries has been imposed, which accounts for nearly £6,000,000 of the total saving of £10,300,000. Economies in pay, etc., will take effect from October 1.

LIVING ABOVE MEANS.

Tobacco, Beer, Amusements and Petrol Increases.

SURTAX 10 PER CENT HIGHER.

(Received 11.30 a.m.) : LONDON, September, 10. Introducing the . Budget into the House of Commons, Mr. Philip Snowden, Chancellor of the Exchequer, confessed that it was the most disagreeable task of his life. This was the niost vital of after-war Budgets and was necessitated by the fact that the .nation, for a considerable time, had been living beyond its means. . There had been drops of £20,000,000 in inland revenue and £4,000,000 in Customs arid excise duties. The estimated deficit on this year's Budget was £74,750,000. The surtax would be increased 10 per cent; the beer tax raised Id per pint, yielding £4,500,000; tobacco from 8/10 to 9/6 per lb, yielding . £2,500,000 this year, and £4,000,000 next year; and an additional 2d per gallonoosn s petrol would yield £4,000,000 this year and £7,500,000 next year. The entertainments tax would be increased 16 2-3 per cent, which would yield £1,000,000 this year, and £2,333,333 next year.

EXPORT CREDITS.

NEW PROPOSAL IN U.S

WASHINGTON, September 10,

After a two days' conference - between President Hoover, the Governor of the Federal Reserve Board, Mr. E. Meyer, and leading figures in the wheat and cotton trade, it became known that the President is seriously considering creating banking credits for the export of cotton, and, possibly, of wheat.

Mr. Hoover is also considering a proposal by the Egyptian Government for an international cotton conference. Various plans to improve the situation regarding the two staple commodities were discussed. The curtailment by law of the acreage to be sown was rejected as being unconstitutional.

COMPLIMENT BY SCOTS.

DINNER TO MR. MacDONALD.

' RUGBY, September 10. r Arrangements have, been made for a complimentary dinner, of. a non - political character, to be given by Scotsmen to the Prime Minister, Mr. Mac Donald, in London on October 12, his 65th: birthday. ' Many of the Scottish Associations inLondon are represented on tlie organising committee, which has the support of Scots eminent in literature, art, law and commerce. The Earl of Elgin will pre-, side. . '~ : ', '' :... '..