U.K. BUDGET Little Relief From Economic Squeeze

Press, Volume CVI, Issue 31343, 13 April 1967, Page 13

U.K. BUDGET Little Relief From Economic Squeeze

(N.Z.P.A.-Reuter—Copyright)

LONDON, April 12.

British taxpayers, hoping the April Budget would bring relief from the economic “freeze and squeeze” imposed last July, today resigned themselves to continued austerity.

The Budget was spelled out yesterday in a 90-minute speech to Parliament by the Chancellor of the Exchequer, Mr James Callaghan.

To most voters it meant “carry on freezing.” It was, as the experts predicted, a neutral budget, with little or no relief for the average taxpayer. Its aim is to maintain the present economic recovery without risking a fresh round of crises. The Conservative “Daily Mail" said today Britons must be relieved that there was no increased taxation on beer and tobacco. ‘Never Again’ It said the Budget, quite rightly, expressed the Prime Minister’s determination that the country would never again have a sterling crisis. The independent radical “Sun” said Mr Callaghan was right not to be generous, “but did he have to be quite so uninspired and uninspiring?” The mass-circulation Leftwing “Daily Mirror" said

there was a Budget speech but no Budget. “The Times” said the Budget could be a political mistake with the Greater London Council elections occurring tomorrow.

Mr Callaghan told Parliament that there would be no major tax changes in the coming year. He also warned of a clampdown on tax dodgers. Mr Callaghan said the Government’s squeeze had paid off—that Britain had repaid big short-term debts after last summer’s sterling crisis, that reserves and exports were up, and that sterling was strong. The balance of payments, in deficit to the tune of £822 million in 1964, would show a surplus this year so that other medium-term debts to the International Monetary Fund and Switzerland would be paid off by December. Purchase Tax

The Budget also cut purchase tax and hire-purchase restrictions on motor cycles, increased allowances for single or widowed women with dependants and gave

slight relief to authors and other creative artists who can now spread certain taxes over six years instead of one.

But there was no relief for Britons who want to holiday abroad—the £5O travel allowance remains.