BRITAIN’S HEAVY TAXES

Grey River Argus, 12 February 1938, Page 9

BRITAIN’S HEAVY TAXES

ARMAMENT BURDEN Government Promises a ' Halt (British Official Wireless) RUGBY, February 10. Attention was called in a Commons debate to the growth in the 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 that 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 war-time level. In policy only was to be found a way of adjusting drastically the relation between revenue and expenditure. Revived international trade, and a saving on armament expenditure, by means of a limitation convention must be looked to for this.

The Financial Secretary to the Treasury, on behalf of the Government, approved the motion. He said that the increase in national expenditure since 1932 had been due to the defence and social servic.es. The supply services showed an increase of £150,000.000. Defence expenditure accounted for £93,000,000. and the civil services showed an increase of £54,800,000. While the increase in expenditure was accounted for by the cost of services which the Commons had agreed would be necessary, it would be wrong to leave the impression that it was viewed with eqanimity by the Government. It was realised that the present burden of taxation made it imperative that no fresh commitments should be entered: into, unless .they were justified on the clearest possible ground of public interest. The Government was alive to the danger of the effect of high taxes., and to the very real and universal desire to economise on ar-' maments, as .soon as possible. The Government intended to effect that reduction by agreement at the earliest time when it could safely be 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 the 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 T. Inskip.