ALL IN FOR WAR

Evening Post, Volume CXXXI, Issue 83, 8 April 1941, Page 6

ALL IN FOR WAR

The astronomical figures of the British Budget will not come as a shock to British taxpayers, for when Sir Kingsley Wood obtained votes of credit at the beginning of February he

warned the country that the pace of war expenditure was increasing. The largest sum actually spent in the Great War was £2,432,000,000. Last year's credits exceeded this by £598.000,000, and it was forecast, after Sir Kingsley Wood's speech, that this year's expenditure would be £3,800,000,000 for war and £700,000,000 for civil purposes— a total Budget of £4,500,000,000. An

income tax of 10s in the £, a trial of cbmpulsory savings, and a special tax on wartime excess income of wage-earners were also predicted. Two of these predictions have been realised. The compulsory saving, however, is embodied in the addition to income tax and is a comparatively modest measure applicable mainly to persons in the lower income groups. All will pay more tax, but the taxes paid by the lower income people will be treated as partly loans. This measure is accompanied by a deferred rebate on excess profits lax which, in effect, treats 20 per cent. of this tax as a loan to be put back into industry after the war. The general effect of ihe Budget must be to achieve ihe purpose emphasised by Sir Kingsley Wood in February—that civilian consumption should be cut right down and that every possible penny should be saved and lent to the State. Hitherto the Government, for the attainment of this object, has relied upon heavy taxation and voluntary saving. The objection to compulsory saving was that it would disturb the machinery for voluntary saving which was already yielding substantial returns, and that the amount obtainable by compulsion would be less than that already secured by persuasion and savings organisation. The form and the moderation of the compulsory savings scheme suggest I hat the Government will continue to rely upon voluntary methods for the bulk of its borrowing, but will take steps to see that all people with taxable incomes lend something. . The bracketing of compulsory saving and a post-war refund of excess profits indicate that these measures have a treble purpose—to furnish war funds now, to cut civilian consumption to bedrock, and to provide savings for post-war spending and capital for post-war industry.

The most striking feature of '.lie Budget, however, is not its adoption of new methods, but its adherence in ever-increasing measure lo an oftenunciated principle—all in for war. The State is taking more and more for war and the people are asked— and, indeed", compelled—lo spend less and less for civil purposes. And this is being applied to all classes who arc responding readily and splendidly so that in many forms of revenue returns exceed the estimates. The Government is setting the example; over five-sixths of its expenditure is for war and less than one-sixth for civil needs, and the people are following that example.