BRITAIN'S EXPENSES.

Auckland Star, Volume LXVII, Issue 58, 9 March 1936, Page 7

BRITAIN'S EXPENSES.

Cost of Increased Defence to

Nation.

NO TAXATION CONCESSIONS. (Received 12 noon.) LONDON, March 8. It is becoming apparent that the country will be faced with its biggest Budget of recent years, the total being likely to approach £800,000,000. Viscount Snowden's Budget of 1931 amounted to £803,000,000, but included £52,000,000 for the sinking fund. I ■ - , It is evident that the Chancellor of the Exchequer, Mr. Neville Chamberlain, will not be able to make t%x concessions in his Budget. Defence estimates alone are nearly £34,000,000 above last year. The cost of the White Paper proposals depends partly on the reactions of other countries to the British rearmament programme, but the City estimates that at least £20,000,000 will be required for 1930-37. The civil estimates show an increase of £4,000,000. The Chancellor is thus obliged, assuming debt services are the same, to find £772,000,000. Last year he budgeted for £734,470,000. Revenue is expected to cxceed the estimate by £20,000,000, thus leaving Mr. Chamberlain with a further £20,000,000 to find in order to cover £772,000,000. The City considers the buovancj of revenue may suffice to meet the demands but there will be no room for tax concessions. It is fortunate, however, that the new liability will come at a time wlitfn revenue is buoyant and business active and even thriving in many districts. The air estimates show the following increases compared with last year:— Navy, £9,880,000; Annv, £5,731,000; Air, £18,350,000; civil list, £12,275,000; revenue, £330,000. Mr. Chamberlain last year provided an additional £8,000,000 for restoration of salary and wage cuts and must also, this year, make substantial provision, probably £20,000,000, towards tlic new defence programme.