BRITAIN’S FINANCES

Evening Star, Issue 20151, 16 April 1929, Page 6

BRITAIN’S FINANCES

THE BUDGET DELIVERED TEA DUTY REMOVED BETTING TAX REPEALED REVIEW OF TRADE POSITION IMPROVING CONDITIONS A FEATURE (British Official Wireless.) ness Association—By Telegraph—Copyright. RUGBY, April 15. (Received April 10, at 11 a.m.) Mr Winston Churchill, Chancellor of the Exchequer, introduced his Budget to-day in the House of Commons, which was crowded. In regard to revenue, he said that last year the Customs and Excise showed u deficiency which was almost entirely accounted for by beer alone. Recr showed a fall of £7,350,000, J hat was an Exchequer embarrassment, but not a national misfortune. The steady decline in the consumption of alcoholic liquor throughout the land was duo to a change in the national habits and the growth in the demand for alternative ° beverages. Alter making full allowance for the trade conditions, lie could not estimate for more than £79,000,000 in beer revenue tins year. He estimated this year £239,500,000 in income tax and £81,000,000 in death duties.

Owing to the continued Stock Exchange activity and the dotation pi now companies, stamps had yielded £2.000,000 above the estimate last year, and he estimated a further growth this year, bringing the total to £01.000,000. Tie estimated to receive this year £1.700,000 from the excess profits duty and the eorporatiou profits tax, and £58.000,000 from the super-tax. The total receipts from taxes ho estimated at £074,050,000, From non-taxed revenue he expected to receive £79.290,000, making the total ordinary revenue £750,9-10,000.

The ordinary expenditure was estimated at £741,964,000, so that he anticipated a surplus of £11,970,000.

No now taxes would be imposed this year. On the other hand. Mr Churchill stated, the tea duty would ho immediately removed, the cost being £6,000,000. One tax for which he had been responsible was the betting tax. It had been more trouble than it was worth, and the tax on bookmakers’ turnover would be immediately repealed. The bookmaker in future would pay £lO a, year for a certificate, and in addition be would pay a license duty of £4O. For every telephone installed in his office i per cent, would be levied, also on the takings of the totalisator, which he had been led to believe would be a fair equivalent to the license duty on bookmakers. The yield on those levies would be £850.000 in the current year and £900,000 in a full year. There would be a 25 per cent, reduction in the licenses for the retail sale of boor and spirits in view of the curtailment of the hours of sale since the war. This would cost nearly £2.000,000 in a fnU*year. The harbour dues would bo reduced.

Despite the above-mentioned concessions, Mr Churchill estimated ■ the Budget surplus at £4,01X5,01)1). Reviewing the financial position. All' Churchill said the period of the Government’s term of office was chequered. There was the industrial disaster of ]92G, but after two years of quiet there had been a sensible improvement in the situation. The savings of the smallest class of investors had increased, while the Government had been m power by £170,000,000. The cost of living had declined at least IS points, a symptom on which lie dwelt with more confidence than on any other. There was an increased consumption of tea and sugar, which was an indication of the general condition of the masses. Before the Great War the British people consumed annually 0.551 b of tea and 811 b of sugar per head. Last year they consumed 9.151 b of tea. and 901 bof sugar. That was a record in the consumption of those commodities.

The balance of trade had sensibly improved, and the power of the community to export and invest capital abroad—thus fostering the export trade —had risen from £80,000.000 in 192-1 to £149,000.000 in 1928. The new capita! issues for home investments in 1923 showed a growth of about £100,000,000 over 1924. Whatever might be the future of particular industries or particular localities. said Mr Churchill, we were undoubtedly dwelling to-day in a more powerful, a more wealthy, and a more .securely founded community than five years ago. We were steadily improving our conditions, and compared with most Huropean countries wo were maintaining our pre-war level. Speaking of the gold standard and the cost ot living. Mr Churchill admitted that the gold standard had carried with it privations as well as rewards, and his hope-and faith was that ilic privations were minor and temporarv, and the rewards would be major and permanent.

The producing industries as well as the entrepot trade had derived lasting benefit from the resumption of the gold standard. He referred to benefits it bad conferred on the overseas trade', which constituted a stepping stone in times of peace.to our economic position in London.

Despite the sacrifices made by Great Britain during the war, the country had regained its solid international preeminence. We were still the greatest international market, and we had been able to maintain money rates lower than those which normally prevailed in Xew York, while bills of exchange on London—which after the war were so

seriously menaced —had in the last few years regained their time-honoured position as favourite international instruments and tokens of commerce. There had been a decline in the cost of Jiving as a result of our allegiance to sound money. This decline of 18 points was an increase in the purchasing power of wages equivalent to a remission ol £IGO,OOO,OQO a year in indirect taxation. In regard to the debt operations of the present Parliament, the Chancellor said the nominal deadweight of £7,598,000,000 had fallen to £7,501,000,000. The interest on the debt by the operation of sinking fund had been reduced by £9,500,000 a year.