LEAKAGES ALLEGED

Evening Post, Issue 98, 27 April 1936, Page 9

LEAKAGES ALLEGED

BRITISH BUDGET

INSURANCE MARKET SWAMPED

RIGOROUS INQUIRY

United Tress Association—By Electric Tele-

—Copyright.

LONDON, April 24.

The "Daily Telegraph" says that as a result of alleged Budget leakages, insuring against Budget risks may be drastically regulated and -possibly banned altogether.

It was disclosed at a special meeting of Lloyd's committee that while Budget insurance usually did not amount to more than £10,000 to £15,000, distributed in £100 to £250 lots, the market was swamped with orders on Budget day amounting to many tens of thousands of pounds, although previously no interest had been taken. The rate against an increase in income tax rose from 15 guineas early in the day to 45 guineas in the afternoon. Tea insurance rose from 20 to 45 guineas.

It is impossible to estimate how ■much the "prescience" of insurers cost underwriters.

AFTER THE RACE.

Sir Assheton Pownall, a member of Lloyd's, declared: "There has been a leakage for the first time in my long experience. No one pays 45 guineas per cent, unless they are certain they are backing the horse after the race is won."

The subject of the alleged leakages was raised in the House of Commons, the Leader of the Labour Party, Mr. C. R. Attlee,' asking for information.

The Chancellor of the Exchequer, Mr. Neville Chamberlain, did not reply.

The Parliamentary correspondent of "The Times" says that this was because the speakers had exceeded their allotted time, preventing the Chancellor dealing with all the matters raised.

It is expected that the question will be reopened at question time on Monday.

The "Daily Telegraph" says all parties are deeply concerned at the alleged Budget leakage. It is understood that the Government has ordered a rigorous inquiry.

Lloyd's committee has asked the underwriters to give the names of all insuring against risk of increased incorhe and tea taxes. Mr. Chamberlain will make a full statement on the matter on Monday.