“THINK BEFORE YOU SPEND”

Press, Volume LXXVI, Issue 23004, 26 April 1940, Page 11

“THINK BEFORE YOU SPEND”

SIR JOHN SIMON’S BROADCAST NEWSPAPER COMMENT ON BUDGET (UXITEO PRESS ASSOCIATION—COPYRIGHT.) (Received April 25, 8 p.m.) LONDON, April 24. “Think before you spend” was the keynote of Sir John Simon’s broadcast in explanation of the Budget. Stating that the year’s expenditure of £2,667,000,000 represented more than £7,000,000 a day, he made three suggestions, “first, make the purchase only if sure you should have it, second, consider whether the article is from overseas, third, decide how much income you can save each week. The money saved can be used to buy savings certificates or defence bonds or can be put in the savings bank. “We are engaged in the most expensive war of all time. These taxes are spread over the whole population as justly as possible. The needs of the fighting services must come first, the needs of export trade second, and homo needs must be reduced as far as possible.” The “Daily Telepraph” says the Budget was well received in the City, where it caused sharp rises in gilt-edged securities. The old 3 4 per cent; War Loan rose 14 points to 1014, the highest level since the outbreak of the war. The new 3 per cent, loans for the first time reached par. Commenting on the Budget, the “Daily Telegraph” says; “The Chancellor was aware that he could rely on the unanimous support of the country for his bold and realistic approach to the problem of meeting the stupendous cost of modern war. He has taken full advantage of that assurance to impose heavy increases in taxation, and whatever criticism may be raised in detail there will be none against his general principle of gathering in large additional revenues out of the taxpayers’ pockets.” “The Times” characterises the Budget as “a Budget whiqh possesses the great merit of stating without concealment or softening the truth of the financial position.” The “Daily Express” criticises the proposed “purchase tax,” foreshadowed by the Chancellor, and says in effect it is a sales tax, although it carries another name. The “Daily Herald” adds to this criticism that such a tax would increase the cost of living. The “Daily Mail” in a leading article says: “The purchase tax makes the Budget bad for the shopkeeper and trading community. Much probing into the structure of various industries is necessary before a basis for the tax can be found.” The “Daily Mail” asserts that the tax will lead to increased prices and increased wage demands, resulting in the very process which the Government desired to avoid. Whatever its purpose, the response of the trading community would be hostile. The “Manchester Guardian” says: “The Chancellor’s courage has failed him. The Budget is less drastic than the situation warrants. Our estimated expenditure is well below the rate of the Germans’ spending, which is nothing to be proud of, but a reflection on the imperfect mobilisation of our resources.” A White Paper lists the credits for Government departments in 1940-41 as follows; Total, £147,545,000; details; Ministry of Home Security, £96,314,000. including £250.000 for evacuation and £5,250,000 for protection of vital services; Ministry of Health. £40,000,000, including £16,000,000 for evacuation; Ministry of Agriculture, £4,775,000, including £300,000 for the women’s land army; Ministry of Food, £2,100,000; Ministry of Information. £ 1,883,000. including £ 1.500,000 for publicity: Ministry of Supply, £984,000; Deoartment of Agriculture for Scotland, £560.000; Ministry of Economic Warfare, £547,000; Ministry of Shipping, £382,000. EFFECT OF NEW TAXES LONDON, April' 23. Further legislation is being introduced relating to the margin of preference for Empire sugar. The present preference will operate until August, 1942. If, after the war, there emerged a minority of indiviiuals to whom the war brought nothing but a colossal fortune, it would be a situation which Parliament could not pass without effective action. However, that was essentially a post-war problem. The increased beer duty is estimated to produce £ 15,000,000 in the current year, and the increased levy on spirits will raise whisky to 16s a bottle and gin and rum to 15s 6d. The proposed double excise duties on matches are estimated to provide £3,500,000 this year. Telephone charges are increased by 15. per cent. Postage rates for correspondence overseas are unchanged, but foreign postage rates are increased by a halfpenny. The new postal changes will take effect on May 1. and are estimated to produce £ 10,400,000 this year and £11,000.000 in a full year. The telephone increases are estimated to yield more than £ 1,000,000 this year and £2,800,000 in a full year. There will also be an additional charge of threepence for each ordinary priority or greetings telegram and also on night telegraph charges for private telegraphic services, which would be increased by 25 per cent. The increase in Post Office charges is estimated to yield £12,500,000 this year and £14,500,000 in a full year.