BRITISH BUDGET

Hawera Star, Volume XLVI, 11 April 1927, Page 5

BRITISH BUDGET

SPEECH TO-DAY.

FURTHER TAXES NECESSARY. THE GOVERNMENT IMPUGNED. BY CABLE-CRESS ASSOCIATION—COPY EIGHT. LONDON. April 8. The Jit. 11ou. Winston Churchill is certain to face a critical audience in the House of Commons on Monday, with a record Budget of £800,000,000. The few who foresaw the possibility of a slight reduction in the lunlgc burden of taxation have recognised® the hopelessness thereof in view of the enormous deficit. The general strike and coal strike have “come home to roost, ’’ and the country is faced by future burdens of taxation.

Public opinion is rounsed by speculation as to the form this will take. Ardent Government supporters are openly critical of the enormous Governmental expenditure, and the Conservative newspapers unhesitatingly declare that the Government lias failed to redeem its economy pledge. Instead •of reducing progressive expenditure by the promised £10,000,000, there has been an increase of £10,000,000. Scores of Conservative back benchers are perturbed at the position, and pressure from the constituencies has compelled them to band together to urge wholesale economy. It is expected that Mr. Churchill will make a raid on fhe sinking fund to the extent of £20,000,000, and .justify this step bv reference to the dinstrous industrial year, though the soundness of this argument is seriously questioned. The road fund, provided by direct motor taxation, is certain to be raided again, and this will allow the Chancellor to pass over the income tax, concerning which public opinion is overstrong to risk an increase. r lho tobacco duty will almost, assuredly be increased further to the extent of 7d per pound. It is said the idea is to tap the enormous profits of the tobacco trade, and to prevent their being passed on to the consumer. . Altogether Moiulny\s recital ot Jie nation’s financial affair; premises to be most gloomy. At the present moment there is not a gleam of hope for the taxpayer. Everything is going on, and nothing coming off. This has caused one of the strongest Government newspaper supporters to hint that the taxpaver can only expect relief by Ihe Government going out. Most of the Sunday newspapers, m a forecast of to-morrow’s Budget, agree that the income tax will not be altered, but that there will be a tightening up of the super-tax and regulations to deal with tax dodgers, including conversations of private estates into limited companies. Thert will be increased duties on wines and tobacco, and new on imported motor tyres and petrol. The latter is suggested as a preliminary m a change in the method of motor taxation. from a horse power to a fuel basis. Other prophesies include include increased taxation on silks and betting. , . Mr. Churchill begins his Budget speech at four o’clock.