THE BUDGET IN BRITAIN

Press, Volume LXXIV, Issue 22344, 7 March 1938, Page 9

THE BUDGET IN BRITAIN

PROSPECTS FOR THIS YEAR LARGER YIELD EXPECTED FROM INCOME TAX LONDON, March 5. The newspapers are beginning te review the financial prospects for next year and speculate on the total expenditure for which the Chancellor of the Exchequer will have to provide in the Budget. i It is generally understood that Sir John Simon will have to raise more than £1,000,000,000. The total is formidable, and the fact that financial authorities are facing the prospect with so little apprehension is remarkable. The city editor of “The Times'* recalls that the income tax next year will be levied on busines profits of 1936 and 1937, which, in the latter year, were estimated by the "Economist” to have increased by 17 per cent, over 1936. The next financial year, moreover, will be the first full year of the national defence contribution, which was deliberately introduced by the Government last year, and will broaden the base of business taxation and provide for the increasing demands on the defence programme. It is also pointed out that if the value of overseas trade continues to rise customs will be correspondingly higher. The civic estimates show a reduction of £lll.OOO to a total of £2,542,000, which is chiefly because of the provision made last year for £302,000 for the Coronation. To* Secret Service absorbs £450.000, an increase of £ 100.000.