BRITISH BUDGET.

Press, Volume LIX, Issue 17741, 18 April 1923, Page 9

BRITISH BUDGET.

I HUGE SURPLUS.

APPLIED TO DEBT

REDUCTION

LOWER INCOME TAXATION

„r CABLZ-FRESO ASSOCI...Tins-COPYRIGHT.) (icSTBALIAN AND *■*• CABLE ASSOCIATION.,

LONDON, April 16. Introducing the Budget in the House „f Commons, Mr Stanley Baldwin (Chancellor of the Exchequer) said that J. he financial year had become steadily better as it proceeded. Unemployment, though still grievous, had decreased. There was a surplus of revenue over expenditure of £lOl ..000,000, which had gone to the reduction of debt. There would be plenty of debt lor their jrraii'lchildren to (Teal with when their time came. Customs and excise showed a surplus of £7,000,000 over the estimate, and inland revenue, had yielded .KG.300 000 orer the estimate. The surplus for the year arose from the best of all possible causes, the reduction of expenditure, which was £97,000,000 less than the estimate. The Estimates for the ensuing year show an expected surplus of £37.000,000. Income tax will be reduced by (Id, and Id a pint will he taken off the beer tax. A considerable reduction will be made in the postage rates, and sixpence will be taken off the corporation profits tax after June-30th.

Party Views. Lobby opinion regrets that the whole of the corporation tax was not taken off. Tho general comment is tliafc it is a careful but a, commonplace Budget. The National Liberals hold stronfrlv tbat, by putting lof£ millions last year, and forty millions this year to debt reduction, tho Government is making the burden on industry too heavy. In view of the huge realised surplus, twenty-rive millions to debt reduction would have been ample, enabling tho Chancellor to take a shilling off the income-tax, and reduce the sugar duty. The Labour Party say it is a rich man's Budget. It will propose a reduction of the tea and sugar duty to 7d, and the abolition of the duty on dried fruits. Labourites consider, that brewers, in view of their large profits, should contribute more than 4s per barrel towards the cost of the beer reduction, as the Government is giving a rebate of 20s per barrel. Press Oponion. The "Daily, Express" congratulates the Government on a sound, successful, and popular Budget. The "Daily Chronicle" describee it ,as a mean, ungenerous Budget. The needs of women have been forgotten, and the needs of social reform ignored, j The Debate Opened. ITrßamsay Mac Donald opened the j .Budget-debate. He said that, on the peat fundamental point of debt reduction, the Chancellor had shown -a courage andjvisdom not shown by his predecessors since the war started. He regretted that no mention was made of a capital levy such as the Labour Party would undoubtedly try. He described as a false argument that the reduction in the income-tax would mean a larger amount for investment, and a consequent increase in the volume of hade. Of the 6d not more than a Penny would go to stimulate trade; toe rest would be spent in parasitical Jorms pf luxury. He denounced the decision not to reduce the sugar tax, Which was a burden on the working classes who, in tea and sugar, found forty millions yearly. The Labour Party's view was that the only way ; to increase trade was to increaso the .Basses' standard of living. i- Sir Alfred Mond said the Liberals jiWn)d support Mr Baldwin's attempt

j; to reduce expenditure in every direcI loa. He thought last year's surplus p Aould not be swallowed up by the

oaw of the vast sea of debt reduck°i>' It would have -een better to devote the surplus to vast road making kernes, and assisting agriculture, Which would reduce unemployment without further taxation. He was surprised that Mr Baldwin should refer the proposed betting tax to a committee, instead of the Government dociding the question. Mr J. P. p. Eawlinson welcomed the letting tax enquiry. He was strongly opposed to betting, and believed it would be good for the country to tax it. ™ie taxation resolutions were agreed W) and the House adjourned. Concessions to Taxpayers. The new postage rates announced »re;~ betters— Inland IJd for 2oz, and Jd *W each additional £oz, to British and tha United States, «*for ljd, and Id for each additional loz. , tinted Papers—2oz for *d, and additional 2oz to 21b idtelephone rentals have been reduc- •» to £io 3-early, and public calls to " of 3d. The duties on cider and perry have •*» repealed, and the mineral waters My halved. J' is estimated that the various factions for the full year will be:—

*««>me-tax .. .. 26,000,000 Woration profits .. 125,100,000 fc •• •• 1560,000 .. 840,000 and minerals .. 335,000 Replies to Questions. jt ' "■ C. Bridgemen, replying for onar Law to.questions directing to the recent speech of Mr jj*- Bruce, Prime Minister of Aus|j|S contrasting Australian and Briv preferences, suid the Imperial « . "uc Conference would consider Buckley, replying to fyftT 1118 ' 8 :"d that emigration from Under the ex-Servicemen's free J,!? scheme, for the year ended

March 31st, totalled 0210 (Canada 3619, Australia 2597), and under the Empire Settlement Act for the same year 53,674 (Canada 156, Australia 11,740, New Zealand 1767).

REDUCTION OF TAXATION.

ESTIMATES FOR CURRENT YEAR. (Received April 17th, 5.5 p.m.) LONDON, April IC. The House of Commons was crowded to hear Mr Baldwin deliver the first Conservative Budget since 1900. Mr Bonar Law was received with sustained cheering. He is still suffering from laryngitis, and will be unable to take part in the Budget debate or speak in the House at all. for a fortnight. Unlike Mr Gladstone, who refreshed himself with egg flip, and Lord Goschcn, who sipped brandy and water, Mr Baldwin relied on two glasses of water. His speech was remarkably short, and lasted only an hour and a-half. There wero no oratorical embellishments, but unlike some earlier Chancellors, every word was heard and every point made plain. When Mr Baldwin announced that there would be no reduction in the duties on tea and sugar, there were cries of "Shame" from the Labour benches. Mr Baldwin explained that there was a world shortage of sugar. If the duty wero reduced the demand would increase and the price go up, so the consumer would lose all benefit, but he hoped the condition of the world's markets would justify a reduction of the duty at an early date. An interesting passage in the speech explained why the surplus of a hundred milion" was automatically applied to the reduction of debt. Mr Baldwin said it was a misapprehension to think this was still in our possession. To hold up a surplus of a hundred million in the Exchequer would produce a crisis of very great severity in the money market, and make it impossible to collect tho income-tax revenue for tho last quarter of tho year. Incidentally Mr Baldwin said the amount owing by Dominions and Allies was 2095 mi!lions. Tho indebtedness of the Dominions was: £ Australia .. .. 90,298,000 New Zealand .. 29,482,000 Canada .. .. 13,810,000 South Africa .. 12,884,000 The Burden of Debt. Mr Baldwin said that in four yoars the Government had reduced the external debt by 209 millions, and reduced the internal floating dobt from 1020 millions to, 810 millions. They had only to face this year 84* millions of 5 per cent, bonds maturing in September and February. Nothing would easesthe finding of capital for industrial purposes so much as a steady redemption of the public debt. He did not intend to provide any margin for tho Supplementary Estimates, but intended to do his utmost to secure further economies. He proposed to provide a sinking fund of forty millions this year, forty-five millions next year, and fifty millions, the maximum, thereafter. The debt burden was very heavy. Interest alone absorbed over three hundred millions per year. He estimated the total expenditure for 1923-24 at £806,616,000. He estimated tha,t Customs and excise would yield 274 millions, and inland revenue 445 millions. The total revenue was estimated at £852,650,000. A reduction in taxation was necessary, but would it help if he had to reimpose it next year? He was greatly attracted by the tax on betting, but ho had not had sufficient opportunity for examining the matter. He intended to remit it to a Select Committee. Ho intended to effect postal reductions to the extent of £2,500,000 yearly. The beer duty had been reduced to make tho retail soiling price a penny per pint less. There would also bo sixpence off tho income-tax, and the corporation profits tax would be reduced by sixpence on profits after June 30th. The various reductions would cost £34,150,000 this year. He believed they had reached the peak load of taxation.