BURDEN OF TAXATION

Evening Star, Issue 22880, 11 February 1938, Page 12

BURDEN OF TAXATION

NATIONAL AND LOCAL EXPENDITURE IN BRITAIN GOVERNMENT ALIVE TO DANGERS OF POSITION (British Official Wireless.) Kress Association—By Telegraph—Copyright RUGBY, February 10. (Received February 11, at 1 p.m.) Attention was called in a House of Commons debate to the growth in national and local expenditure when a motion was moved urging the Government to do everything in its power to lighten the burdens imposed upon all classes of taxpayers and ratepayers. In moving the motion Captain Balfour said the national expenditure in 1937-38 was £257,000,000 more than in 1928-29, despite a saving of about £140,000,000 on debt services. To meet this, direct taxation was standing at the wartime level. The only way of adjusting drastically the relation between revenue and expenditure was a revival of international trade and a saving on armament expenditure by means of a limitation convention. The Financial Secretary to the Treasury, on behalf of the Government, approved of the motion, and said the increase in national expenditure since 1932 had been due to defence and social services. Supply services showed an increase of £150,000,000. The defence expenditure accounted for £93,000,000, and the civil services showed an increase of £548,000,000. While the increase in expenditure was accounted for by the cost of services which the Commons agreed to be necessary, it would be wrong to leave the impression that it was viewed with equanimity by the Government. It was realised that_ 'the present burden of taxation made it imperative that no fresh commitments should bo entered into unless they were justified on the clearest possible ground of public interest. The Governments was alive to the danger of the effect of high taxes, and to the very real and universal desire to economise on armaments as soon as possible. The Government intended to effect that reduction by agreement at the earliest time when it could be safely done. Mr Chamberlain agreed to a suggestion by Mr Attlee that a day should be given for a general discussion on defence before the Estimates for individual services were taken. He also consented for a White Paper to be issued in advance of the debate giving details of the progress of rearmament and the work of Sir Thomas Inskip.