THE ENGLISH BUDGET.

Press, Volume LXI, Issue 13411, 1 May 1909, Page 8

THE ENGLISH BUDGET.

Unfortunately the figures of Mr LloydGeorge's Budget speech have come to us in such a mangled form that it is impossible to gather what is the exact financial position. T!:e broad facts, however, stand out with appalling distinctness—that the revenue for the past year fell far short of the estimate 1 , as h? expenditure largely exceeded it; that a further decline in revenue is expected next year, and that altogether the Chancellor of the Exchequer has to make up some £'1(5,000,000, cither by reduction in payments to sinking fund or by fresh taxation. We j-.hould have to go back many years in English history l>efore we> should find the annual balance-sheet showing such disastrous results. It is the more unfortunate for tlie Ministry because Liberal Governments are supposed to connote succe.s- cful financial administration, whatever shortcomings they may possess. The present Government, as tho "Economist"' pointed out in a recent article, came in "to trample on prodigality," and it signalises its third year of office by making a record addition to the taxation in time of peace. Tlie only consolation left to tho British taxpayer is that the deficit is ten millions less than that which Germany has had to face. For the very unfavourable showing in the British balance-sheet there are two or three contributing causes, and it cannot fairly be said that the Government are to blame for all of them. There has been a falling-off in the consumption of liquor, and the Chancellor of tlie Exchequer anticipates that if the duties were maintained at their present level, there would be a further decline cf one million in Customs md one and a half millions in Excise duties during the coming year. As regards the increased expenditure, the addition to the Naval Estimates meets with the approval of all parties. Where the Government failed was in not looking' ahead sufficiently and making prudent allowance for a probable heavy decline in revenue owing to the depression in trade, while they certainly selected a most inopportune time in which to embark on semi-social-istic legislation, involving a large expenditure of money. Interest in England at any rate will centre on the method Mr Lloyd-George adopts in order to meet the deficiency of £LG,GOO,OOO. Tlie following, in brief, are his proposals:— £ Reduction in contributions ,to sinking fund ,_ ;. ' .'. 3,000,000 Increased income tax .. .. 3,300,00f> Instate duties .. .. .'. 2.850,000 S-nmp duties on share transactions .. .. .. 650,000 Motor taxes .. .. .. 600,000 Land taxes .; ,i .. 500,000 Tobacco .. .: .. .. ], 900.00" .°|jirita .. .. .. i .. 1,000.0"° Revision of liquor licenses .. 2,C00,0C0 - £16,600,000 Wo give the items and total as they appear in the cable, but it will be observed that they do not agree; possibly tho amount to be derived from liquor licenses is £2,000,000, in which case the figures add up correctly. It' will be seen that most of the.increased burden has bsen placed on the comparatively well-to-do classes. Apart from the £3,000,000 which will be saved by suspending sinking fund payments 'there is £13,600,000 of new taxation, and of this it may be said that all but the four or five millions which it is proposed to extract from tobacco, spirits, and liquor licenses, will leave the working man and lower middle classes absolutely untouched. The graduation of the income tax by the imposition of a supertax on the larger incomes was expected. It is considered' doubtful, however, whether it will realise as much as is expected by its advocates, inasmuch as there is likely to be a good deal of leakage. An interesting feature which has much to commend it is tho proposed deduction of £10 for every child, from incomes below £500 per annum, in computing the income tax. The proposed tax on the unearned increment of land will please the single taxers, but the i addition to the revenue which it will i bring ia comparatively small. Altogether Mr Lloytl-Georgo seems to us to have shown a good tleal of ingenuity in trying to lessen the unpopularity of a crushing budget by shifting tho bulk of the burden'on to a minority of the voters, and by appealing for the support of the aelvanced Radicals by what "Tho Times" calls the doctrine of "social ransom."