BRITAIN’S BUDGET

Greymouth Evening Star, 18 April 1934, Page 7

BRITAIN’S BUDGET

IMPORTANT TAXATION RELIEF

SALARY CUT HALVED

[by CABLE —PBESS ASSN. —COPYRIGHT.]

(Received April 18, 10 a.m.) LONDON, April 17. “We have finished the story of the ‘bleak house.’ and are- sitting down to enjoy the first chapter of “Great Expectations,” was Mr Chamberlain’s Dickensian preface to the budget,, after which he proceeded tantalisingly to raise hopes only to defer them, but of course, his eye was on the clock. Nothing must get out before the doors shut on the Stock Exchange, but when it did come, thre was such a. sustained surge of hear hears that obviously he had done something to please all parties. The full restoration of unemployed benefits, coupled with the restoration of half the -service pay cuts sent Ministerial benches cheering. It was a telling silencer to all Socialist clamour that the burden of the country’s travail had fallen on those least able to bear it. There were some hear hears from the Opposition benches, but generally a grim suggestion of realisation, that a good trump card had gone west with these concessions, announced. In his Budget speech, before a crowded House, Mr. Chamberlain said that the budget would show the Government’s efforts had borne fruit, and a new spirit of hope and confidence had

been established. The position was due to the expansion of the Home market. Though the country had regained its -place as an exporter, the export trade was still far behind the figures of a few years ago. The actual surplus of thirty-one millions did not represent the true figure, as sinking fund interest had been paid from income. The real surplus was about thirty-nine millions. A saving of 4S millions on supply services was large-

ly due to decreased unemployment, provision for which had been more than covered by the supplementary estimates. Customs gave a surplus of four millions from the Import Duties Act, two millions from the Ottawa Agreement Act, and one million from the special Free State duties. Beer yielded five millions above expecta-

tions. Spirits, wines and liquor revenue increased, but tea and sugar yield declined. Inland revenue receipts were fourteen millions up. Income tax and super-tax were the same as in 1933. Death duties included the largest payment from a single estate in the history of the tax. Post Office receipts were £1,400,000 above the estimates of last year. The surplus must be devoted to a reduction of the national debt.

This would nearly counter-balance thirty-two millions borrowed last year to meet the deficit. The total deadweight debt reduction was 21g million. It is not proposed to provide for payment of war debt to America or reparations payments to Britain. Taking a reasonably optimistic view of the course of trade, it was expected that the import duties yield would rise to twenty-four millions. It is estimated that total Customs and excise revenue would be 298 millions. The esimated total of ordinary revenue on the existing basis of taxation would yield 727 millions, leaving a surplus of £29,100,000. This would be the largest surplus for fifteen years and permitted taxation relief. Horsepower tax on motor cars would' be reduced from £1 to 15/-, with corresponding reduction in motor cycle tax. On the accepted principle of devot-

ing the surplus to relieving the worst sufferers when the crisis was acute, half of all the salary cuts would be . restored from July 1, costing four million.

Uneinployed benefits would be fully restored from July 1, costing £3,600,000 this year. There would be no remission of indirect taxation, but the income tax would be reduced by sixpence. Reduction in the standard rate of income tax would be the most direct benefit to the country, and a stimulus to the expansion of trade. Major Attlee (Labour) declared that this was the meanest budget on record. Mr. Chamberlain had been wonderfully generous at other people’s expense. The poorer people, and even the taxpayers, were put aside. The budget was an insult to the unemployed from whom millions had been taken and a paltry 3£ millions restored.

The Budget resolutions were caried.