FINANCES OF BRITAIN

Dominion, Volume 30, Issue 160, 3 April 1937, Page 9

FINANCES OF BRITAIN

Real Surplus of £7,530,000 (British Official Wireless.) Rugby, April 1. Commenting on the results of the financial year as disclosed in the Treasury returns issued last night. “The Times” says it is a matter for congratulation that after excluding from the total of ordinary expenditure the sum of £13,127,000 devoted to repayment of debt there is a real surplus of £7,530,000.

Examining the returns in the light of future prospects, “The Times” assumes that the cost of debt services in the current year will remain the same. The estimates for other services already published show an increase of £100,000,000 over the Estimates, including supplementaries. presented last year. This figure, “The Times” adds, may be increased for some provision for contingencies, but it will be decreased by £80,000,000 to be borrowed under the Defence Loans Act and also by certain prospects of revenue. “In the first place,” says “The Times,” “it is clear from to-day’s unemployment returns that recovery is now merging into substantial prosperity. Though more and more persons formerly in the care of public assistance committees and unregistered are now appearing in the returns as unemployed, the total unemployed continue to decrease and the total employed to increase. With the exception of the mining industry the nation today is probably pretty fully employed.

“This improvement will be progressively reflected in the yield of taxes and will enable a more optimistic view to be taken in framing the Estimates, for the process has been continuous for long enough to affect the yield even of surtax and it is continuing steadily enough to justify the hope that confidence will at least maintain the security of values and therefore the yield of estate duties, Customs and excise duties. "Lastly, a. study of company returns shows that the .sum which will be assessable to income tax this year will be substantially more than last year, so that the tax will yield more at the existing rate. These favourable anticipations are strengthened by the prospect that no drastic increases in taxation will be necessary.”