Britons await Budget

Press, Volume CXI, Issue 32565, 26 March 1971, Page 9

Britons await Budget

(N.Z. Press Assn. —Copyright) LONDON, March 26. When the Chancellor of the Exchequer (Mr Anthony Barber) rises in the House of Commons about 4 p.m. next Tuesday to make his Budget Speech, millions of Britons will learn just how much of an imposition they must take from the tax man in 1971-72.

This year’s Budget is causing even more suspense than usual because of the economic crisis in Britain since last summer. It is true that the country earned a £63lm surplus on its foreign trade

and business in 1970, but the total number of unemployed has risen to around 800,000; and there are widespread predictions that it will touch the one million mark by Christmas.

Britain’s economy is being hurt badly by the worst bout of strikes and industrial unrest since the 1926 General Strike. Indeed, Britain is almost at the top of the world league when it comes to wage and price inflation; business is stagnant and industrial investment the lowest for years. The Prime Minister (Mr Heath) and Mr Barber have been under mounting pressure from Parliament, big business and the Labour unions to "deflate” the economy—that is, to take ofl

the economic brakes, ease taxation and pump more money into industry. In a so-called “mini-Bud-get” last October, Mr Barber did promise a small cut in personal income taxes and cuts in Government spending but more money for hospitals and schools. But all the indications are that Mr Heath’s Government will dig in its heels firmly against any real pump-prim-ing until it has inflation under control.

In a toughly-worded speech to businessmen on March 16, Mr Heath said that there could be no lifting of curbs on the economy until wage inflation was halted. His message was clear: Britons have no spending spree to look forward to after this year’s Budget