"BRIGHTER BRITAIN."

Auckland Star, Volume LXIV, Issue 232, 2 October 1933, Page 6

"BRIGHTER BRITAIN."

Since the British Chancellor of the Exchequer made the claim in his last Budget speech, that the Government had re-established confidence, and was able to tako a more hopeful view of the future, there has been a marked -advance. With half the year to go, expenditure is down by £45,000,000, and revenue is up by £7,000,000, making a total gain of £55,000,000 upon the mid-year returns of 1932. The economy pi-ogramme of the past two years is now beginning to bring its reward, and it can be seen that the savings on debt interest are not being swallowed up by the cost of unemployment. On the other hand, the burden is being eased in both these directions, thanks to the revival of trade and industry, and there can be no doubt that the cheapness of money is playing a large part in the growth of new enterprise. The results are working out to the benefit of the nation, and, although it is too early to claim a triumph for orthodox finance, there are good grounds for expecting some reduction in taxes at the end of the present year. This improvement, of course, represents a recovery from a level which was abnormally low, and, so far as the Customs revenue is concerned, shows a prompt reflection of the change in the state of trade. It will be interesting to learn whether income tax is affected as quickly. But even if it were not, there would be good reasons why the Government should give the tax relief which has been so long awaited. Revenue has fallen during the depression because of decline in incomes, and the maintenance of crushing ;axes has not prevented the fall, -though it may have acted as a brake. Conversely,- an easing in taxation in the coming years need not imply a fall in revenue, for it is reasonable to presume that there will be an actual increase in the total through, the rise in the incomes of the people. This applies not only in Britain, but also in New Zealand, Australia and elsewhere. The reduction in expenditure must | ■ also be considered. Since 1931 the expenditure of the British Government has heen reduced [ j by no less than £88,000,000. The largest single \ , item of saving has been £50,000,000 in interest charges, and this suggests,that a lower basis 1 for budgeting should be fairly permanent. On ; , the cconomv side Britain has done more than j is generally realised in the Dominions. j i