SOME RELIEF FOR BRITISH TAXPAYER

Bay of Plenty Times, Volume LXXVI, Issue 14639, 7 April 1948, Page 3

SOME RELIEF FOR BRITISH TAXPAYER

NEW AUSTERITY MEASURES IN LATEST BUDGET

AMERICAN HELP WILL REDUCE DRAIN ON DOLLAR RESERVES

MANUFACTURED GOODS MUST EARN MORE SOUTH AFRICAN GOLD London, April 6. The Budget introduced in the House of Commons today by Sir Stafford Cripps gives the hard-hit British taxpayer some relief. The exemption for income tax is raised from £l2O to £135. Earned income allowance goes up from one-sixth to onefifth, subject to a maximum of £4OO. Otherwise the Budget is one that justifies the use of that over-worked word “austerity.” Cigarettes, already 3/4 for 20 for the popular brands, go up 2d a packet; tobacco will cost 2-|d an ounce more; beer goes up a Id a pint, and whisky and other spirits by 2/4 a bottle; heavy wines will cost 1/- a bottle more, and light wines 6d, Empire wines are not affected. The Imperial preference on sugar is extended for four years. Purchase tax on goods in the shops has been readjusted slightly in favour of the customer, while the tax on theatre seats has been reduced by half. There will be no tax at all on seats up to a shilling. The duty on football pools is raised from ten to 20 per cent. A capital levy has been found to be impracticable-, but there will be a special “once for all” levy based on investment income for the past financial year. It will apply to ratepayers with a total income of more than £2OOO a year, and whose investment income exceeds £250. The levy will range from 2/- in the pound to 10/in the pound on investment incomes of £SOOO. Those are the Chancellor’s main proposals.

Kis speech dealt largely with Britain’s export problems. He told producers that they must out the national interest before their individual interest in seeking quick profits in easier markets. In particular they must pay unremitting attention to the expansion of exports to the dollar countries. Britain must also expand her exports to South Africa, because that country was a 'source of gold to Britain. Sir Stafford thought that the whole country was becoming aware of the urgency of arriving at a balance of overseas payments. He described the present drain on Britain’s dollar and gold reserves as most obviously the serious features of the whole situation. As for Britain’s plans for 1948, he stated that he now aimed to increase production for export by 50 ner cent, in volume by vhe end of December, compared with the prewar figure. This represented a slight, decrease on the original target. He did not think the new target was oyeroptimistic, although it would require a sustained effort in many industries. Sir Stafford described the passing in Washington of the European Recovery Programme as an event of

the most profound world significance. It came as a light and hope to the freedom-loving peoples of the world.

American aid, however, could npt add significantly to Britain’s reserves, but could help to reduce the drain on them. We would need all the reserves we could muster, when American aid came to an end, hs said. We should not be able to indulge in luxuries. If inflationary tendencies at home were not controlled exports would suffer. When the Chancellor sat down after two hours and a-quarter the Leader of the Opposition, Mr Winston Churchill, said Sir Stafford had delivered a comprehensive and lucid statement. The gravity of the situation admitted of no difference of opinion in any part of the House —the extreme gravity of a country so strong and proud as Britain, which could not pay its way and had to five upon tne good offices of a friendly and generous nation for a large proportion of its actual upkeep. ■ Mr Churchill said that the Labour Government’s policy had been accused of encouraging inflation. He doubted if the Budget would be to me°t the real- difficulties, or to apply the right remedies.