HIGHER TAXES IN BRITAIN

Press, Volume LXXXVII, Issue 26394, 12 April 1951, Page 7

HIGHER TAXES IN BRITAIN

Budget Warning On Living Standards (N.Z. Press Association—Copyright) (Rec. 8 p.m.) LONDON, April 10. In introducing his first Budget in the House of Commons to-day, the Chancellor of the Exchequer (Mr Hugh Gaitskell) announced new and increased taxes to meet the gap of £150,000,000 between estimated income and expenditure.

The total expenditure for 1951-52 is estimated to be £4,197,000,000, of which nearly half is for the consolidated services and defence. Mr Gaitskell warned that there would be some reduction in living standards to meet the cost of the defence programme.

Measures proposed to close the gap include an increase of 6d in the £ on income tax; an increase of 4fd a gallon in the price of petrol; the doubling of the purchase tax to 66 2-3 per cent, on new motor-cars and radio and television sets; the doubling of the purchase tax to 66 2-3 per cent on household gas and electrical appliances; an increase in the tax on distributed profits from 30 per cent, to 50 per cent.; and the levying of a tax of between Id and 5d on cinema seats.

In addition persons getting free false teeth and spectacles under the National Health Scheme will now pay half the cost. No changes were made in the taxes on tobacco and liquor, and food subsidies are unchanged. Old age pensioners are the only per Sons to benefit from the Budget.