House Approves Early Budget

Press, Volume CIII, Issue 30619, 9 December 1964, Page 21

House Approves Early Budget

(N.Z.P.A.-Reuter—Copyright) LONDON, December 8. The House of Commons early today approved the Labour Government’s emergency budget proposals.

The Commons gave a third reading to the Finance Bill. It now goes to the House of Lords before finally becoming law. The proposals already have legal effect. In a 12-hour sitting that ended at 3 a.m. members debated the economic state of the nation and the Labour Government’s plans to improve it. The Budget increased income and petrol taxes, gave relief on certain indirect taxes for exporters, and gave more social security benefits. “Bad Bill”

It also imposes a 15 per cent surcharge on manufactured imports. Mr Reginald Maudling, Chancellor of the Exchequer in the previous Government, said he regarded the bill as a bad one which might harm Britain’s economy. Introduction of the surcharge had been “seriously mishandled,’* he said. He said: “It still seems to me that the effect of the Budget is bound to be inflationary.” Labour’s Chancellor of the Exchequer, Mr James Calla-

ghan, defending the proposals, replied: “I would have been guilty of grave dereliction of duty if I had not taken the action I did within days of getting into office.” Because the ship had got so much off course the Government had had to make a violent correction, he said.