BRITISH WAR FINANCES

Evening Post, Volume CXXXVI, Issue 8, 9 July 1943, Page 5

BRITISH WAR FINANCES

FIRM AND STRONG

RUGBY, July 7.

While it could not be pretended that any financial fortifications were impregnable, Britain could fairly claim that after four years of unprecedented struggle the financial front line stood firm and strong, the Chancellor of the Exchequer, Sir Kingsley Wood, said when winding up the Budget debate today. "We have not spared ourselves," he said.

"Our object has been to pay for the war as much as we can. This year the Budget expenditure will be mor£ than eight times what it was ten years ago, and the total expenditure since the war began is already double what it was for the whole of the last war. The amount raised in taxation this year is half as large again as the total amount paid in taxes in the last war. We- have borrowed a sum more than the whole National Debt before the war began.

. "Last year taxes of all kinds took just under 40 per cent, of all private incomes, and the average citizen paid about one-third of his entire income. Of the 12,500,000 taxpayers, some 10,000,000 belonged to the smaller income groups and wage-earners." Sir Kingsley said that out of every pound spent this year Britain would borrow 10s. Through voluntary savings, capital of £2,000,000,000 was now in the possession of small men and women. That would have a profound effect on policy and plans after the war. One of the great duties of the Government would be to maintain economic stability, if only in the in-, terests of the small men and women who now had such aj large stake in national affairs.

. The Chancellor said that the desire of some, particularly workers, was to pay their taxes week by week, and he would never endeavour to contravert such a system if it could be worked. It was under consideration, and he had not given up hope of some reasonable scheme being devised.—B.O.W.