Sir Stafford Cripps’s Speech

Press, Volume LXXXVI, Issue 26092, 20 April 1950, Page 5

Sir Stafford Cripps’s Speech

The Budget announced by the Chancellor totalled nearly £4,000,000,000. The main points of Sir Stafford Cripps’s speech were:— (1) The standard petrol ration, now allowing motorists to cover 90 miles a month, would be doubled from June 1. The tax on petrol and other light oils would be increased by 9d a gallon, making the price of petrol 3s a gallon. (2) Rates of income tax on small incomes—3s in the £ for the first £5O of taxable income and 6s in the £ for the next £2O0 —would be reduced to 2s 6d and 5s respectively. The present rate on higher incomes—9s in the £—would remain unchanged. There would be an inquiry into income tax relief where savings for old age or retirement were concerned. <3) The purchase tax on high-priced private automobiles would be reduced from 66 2-3 per cent, to 33J per cent. (4) An annual grant would be paid to farmers using vehicles operated on taxable oil (5) Beer duty would remain the same but the specific gravity of all beers would be increased by three degrees. (6) A purchase tax of 33 1-3 per cent, would be levied on hitherto taxfree commercial vehicles, in order to restrict “an excessive volume of commercial vehicles ’coming on to the home market.” (7) Gift payments by firms to thenhigh executives would be liable to surtax, retrospectively to 1949. In the case of large sums, more 'han 95 per cent, would be payable in taxation. The total net increase in revenue from the Budget is estimated at £74,000,000. This is expected to yield a gross surplus of £550,000,000 —not allowing for certain Government capital expenditure and other items. The Government building programme for the next thiee years will be restored to 200,000 new houses a year, instead of the 185,000 ordered during the economy drive last autumn.

overall trading deficit of £70,000,000 into an overall surplus of about £50,000,000. The point had now been reached where Britain had increased the volume of dollar sales, and exceeded the rate of dollar earnings immediately before devaluation. A decrease in dollar f ending was essential to improving Britain’s payments position because that was “regular, controllable saving, whereas the dollar earnings of the sterling area are more uncertain and are not in our power to determine.” The Chancellor said that one element in Britain’s improved dollar position was the reduction in imports from the dollar area since 1948. The colonies and sterling area countries of the Commonwealth had also made large economies in dollar imports which, he hoped, would continue.