The Grey River Argus THURSDAY, April 17, 1947. BRITAIN GOES FOR BETTER BUDGET

Grey River Argus, 17 April 1947, Page 4

The Grey River Argus THURSDAY, April 17, 1947. BRITAIN GOES FOR BETTER BUDGET

The immediate rather than the remote effects of Britain’s latest Budget are doubtless those of chief interest to her people, but for the outside world the bid for a £270 million surplus is more notable, and to be regarded as characteristic of British finance. It is calculated to restore confidence, and certainly this is dictated in view of the astronomical debt figures. For instance the past year has seen the national debt swell by £3,342 millions to £25,612 millions, and a surplus will not prevent a further increase in the current year, when £5O millions for the Coal Board; £2OO millions for housing- and £9O millions for temporary houses will be borrowed. Of the debt £258 millions represents America’s loan, and over £BOO. millions is owed other oversea creditors; but the great bulk is internal. A liability is the subsidy being paid to keep down living costs, £475 millions, an increase of £5O millions. Expenditure is expected to reach £3,181 millions, a decrease of £729 millions; that on defence at £899 millions being less by £754 millions than last year; whilst civil and other outlay will be £47 millions greater than last year. Increases include one of £23 millions for pensions, and £29 millions for family allowances, health and housing. The food subsidy goes up by £4O millions to £392 millions, and the subsidyon clothing etc, by £l4 millions to £33 millions. Costs of nationalisation, social services, rehabilitation and the U.S. loan made the Chancellor’s task hard, and he has picked upon the votaries of the soothing weed to make perhaps the biggest sacrifice, and to pay twopence apiece for cigarettes with other “smokes” ou a par. As Yankee films are perhaps as soporific, it is strange that they escape any increase, but big business may know the reason why. The smoker is read a homily on overdoing it, and told a cut will save dollars- but doubtless is calculated to be the biggest contributor to the interest on the dollar loan. In view of international obligations, especially’ Germany and Greece, the 46 per cent, cut in defence outlay must be considered a big one. No doubt sources of revenue are still limited, as oversea trading is this year expected to show an adverse balance of £4OO millions. The Government has, however, been prudent in concentrating relief in income tax on the poorest paid, especially those with families, the Chancellor boasting that social security has been “taken in its stride” by the Government, social services this year claiming £441 millions, a rise on last year of £ll7 millions. For the past seven years there have been huge Budget deficits, last year’s being £569 millions, so that a surplus of £270 millions this year will represent a remarkable recovery, testifying to internal stability at least in the purely financial sense. Last year’s estimates were exceeded in income tax revenue by £45 millions, excess profits tax by £33 millions, death duties by £9 millions and stamp duty by £8 millions, the total revenue, £3-341 millions exceeded the estimates by £lBO millions, while the £3,910 millions spent was £23 millions above the estimate. Indirect taxation produced £1,184 mil-

lions, as anticipated, and it is being increased this year. The wealthier classes reckon expenditure too high, income tax relief too little, and incentives to industry too small. They also feel the tougher succession duties,, but the masses are propertyless, and if plucked by indirect taxes, need the extra provision made by the State, even though this means taxation is destined to remain relatively high in the coming years.