HEAVY DEFENCE BURDEN

Press, Volume LXXIII, Issue 22073, 22 April 1937, Page 9

HEAVY DEFENCE BURDEN

Chancellor Justifies Budget TEMPORARY LEVY MADE ON PROFITS (BRITISH OITICXAI OTRWCISS.) (Received April 21, 1.30 p.m.) RUGBY, April 20. In the House of Commons, the floor and galleries of which were packed, the Chancellor of the Exchequer (Mr Neville Chamberlain) opened his sixth, and what is assumed to be his last, Budget, the normal public interest in which had been brought to a high pitch by the great increases in the expenditure associated with the defence programme, and the expectation of the inevitable additional taxation. The Chancellor prefaced his review of the last year and the explanation of his proposals, which lasted for just over an hour, by himself recalling that the national finances must for several years be dominated by the overshadowing feature of the vast defence expenditure. i He announced an increase oi in- ' come tax to the rate of 5s in the £, I but no increase in indirect taxation. The total revenue from income tax, surtax and death duties together fell short by £5,750,000 of his expectations, but on the other hand stamp duties yielded £2,000,000 more than was estimated at the record figure of £29,140,000, reflecting the activity in the Stock Exchange. Customs and excise duties gave £3,250,000 more than was estimated, due in part to the new duties on beef and veal imposed at the end of December. "Longer View Taken" Mr Chamberlain reminded the House of the balance which the Government had already indicated it desired to see ' preserved between borrowing and raising by taxation the large additional sums required in the years ahead for defence expenditure, and therefore of the longer view than usual which he as Chancellor had had to take in this "Budget to obviate repeated changes in taxation. He described his search for a device capable of growth, but which would not bear unfairly on the various classes upon whom the burden of his other increases last year and this year had fallen. It had seemed not unreasonable to .him that the growth in business profits should be made the occasion of some special and temporary contribution towards the cost of national defence. The Leader of the Opposition (Mr C. R. "Attlee) said: "The Budget marks the complete failure of the Government's policy. We shall oppose it because it is the expression of a J foreign policy which is helping to ruin the world." . . The Liberal Leader (Sir Archibald Sinclair) said f the Chancellor had explained why' Britain was unable to balance her Budget this year, but he did not attemDt to explain how the country would be in a better position five years hence. •

LABOUR CHEERS FOR BUDGET

T: ' "GOVERNMENT MEMBERS i' STUNNED" ; i .■■.'■ ■— ! DEFENCE TAX REGARDED AS BRILLL\NT SOCIALISM LONDON, April 20. The political writer of the Australian Associated Press says: "With characteristic orthodoxy, the Chancellor of the Exchequer (Mr Neville Chamberlain) began surveying the revenue and expenditure before an unexpectant and unexcited House, but his speech was only' threequarters concluded when the House, excepting- the Labour members, were so stunned that the Government benches ; could not utter a cheer. "The general verdict was that, excluding meat duties, Mr Chamberlain's Budget was brilliant Socialism, which the Labour - members vociferously confirmed by repeated cheers. Several Labour members said afterwards that their own party could not have introduced a better Budget. "The national defence contribution tax was a well-kept secret. Conservatives unhesitatingly expressed the opinion that their Prime Minister-elect has imposed a drastic tax on industry, the repercussions of which will be widespread. They consider that the measure marks a substantial advance towards the redistribution o£ capital. "Government supporters were alarmed,'and the Socialists were jubilant over Mr Chamberlain's declaration: 'I believe I have created a flexible instrument, easily adjustable to changing conditions.' Government supporters fear that if Labour comes into power it will use this -as a precedent for a capital levy." ■ • * •