BRITAIN’S REVENUE

Gisborne Herald, Volume LXXIV, Issue 22320, 3 May 1947, Page 5

BRITAIN’S REVENUE

BIG IMPROVEMENT TAXATION SURPLUSES LONDON, April 1. Britain’s financial year ended on March 31 with a deficit of £569 million —£l62 million less than the figure estimated in last year’s Budget. This striking improvement on the estimate lies mainly in revenue returns. While a fall of £123,2 million was expected on the 1945-46 level of £3,284.5 million, revenue actually rose by £56.8 million. Expenditure declined on the 1945-46 figure of £5,474.8 million by £1,564.5 million, compared with the estimated decline of £1,587.9 million. If compared, however, with the revised’ figure reached after taking account of supplementary estimates, the national expenditure fell by as much as £191.7 million. Substantial surpluses in direct taxation are one reason for the improved revenue. For example, income tax produced £1,156.2 million against the estimated £l,lll million, while excess profits tax and profits tax combined produced £357.5 million against an expected £325 million. Approximately half the excess is, however, explained by receipts largely of a non-recurring type. Thus, miscellaneous receipts produced £56.3 million more than expected and sundry loans a surplus of £ll.B million. Again, the sale of surplus war stores produced £6 million more than, the £l5O million estimated. In addition to the £569 million deficit, £sll million has been spent out of borrowed money on such items as excess profits tax refunds, post-war credits, war damage and temporary housing. The excess of expenditure of income during the past financial year was, therefore, £I,OBO million. This big increase on a deficit of almost 50 per cent can, however, be regarded as a temporary phenomenon, since it was due to the effects of the war and the immediate post-war period.