THE BUDGET

Hawera Star, Volume XLVI, 12 April 1927, Page 5

THE BUDGET

♦ SPEECH TO COMMONS CHURCHILL’S DEFENCE. DEPARTMENTS TO GO. WAR STRENGTH TO STAY. BY CABLE- -PRESS ASSOCIATION—COPY RIGHI Received 1.30 a.m.- to-day. LONDON, April 11. 11l a crowded, ten.se House of Commons, the Rt. Hon. Winston Churchill, Chang-!lo.r of the- Exchequer, rose at 3.55 p.in. to announce the Budget. At the outset, lie reminded the House that his calculations last year were based on industria 1 . peace?-. Customs and excise receipts had dropped £9,250,000, the income tax £18,000,000, the Host Office Department £500,000, and stamp duties £1.250,000. The total loss dur to the general strike and the coal strike was £32,000,000, made: up as follows : Decreased revenue £17,500,000, increased expenditure £14,500,000, resulting in less income from super taxes spread over this and future vears amounting to £30.000,000. It had been necessary to raise mere Treasury biLs, an expected fall in money rates had not eventuated, thereby costing £6,000,000 extra in interest oii more and more expensive Treasury' bills. The marvel was that they had not suffered more irrecoverable kisses from the shocking breakdown. The revenue had in the main survived. The Exchange stood like a- rock, and in the face of all the goal standard survived. Beer and spirits alone: reflected to the Exchequer the social industrial struggle, but- the trade flowed on. England had not advanced as rapidly as some nations, but still she was advancing. Her economic vitality and financial strength, though strained, were unimpaired Referring to demands tor a £4U,000,000 cut in expenditure, the Chancellor said this would cause a convulsion into which no Government could plunge the country. Allowing for the decline in money values, expenditure on national administrative services had actually been 10 per cent, below 1914, despite the increase in population and the .higher standards of living. To cut the fighting services by 10 to 15 per cent, would cause a- panic. “The financial dictator might be replaced by another No constitutional government could plunge into it.” It would be out of harmony with the present leqnirements to abolish the Ministry of Labour, and premature to liquidate the Ministry oi Pensions ; but the Prime Minister had authorised the announcement that during the present financial y'ear arrangements would be made to abolish the Ministry of Transport as a separate Ministry. The Road Department would be retained, and arrnngements would be made to distribute the functions of the Mines Department, and to terminate the separate existence of the Overseas Trade Department. (Cheers.) Those changes required legislation, and Parliament would therefore have an opportunity to consider them. —Sydney Sun cable.

CHANCELLOR’S PREPARATION. LONDON, April 11. The Hon. Winston Churchill spent Sunday at his home, Chartwell Manor, near Westerham, polishing his Budget most of the day. He tramped around tiie tennis court memorising his speecn, which is expected to take two hours to deliver. ... Six former chancellors will be included in the audience, of whom Mr. I'hilip Snowden, Mr. Lloyd George, and Sir K. S. Horn will speak. If Mr. Churchill intends springing surprises, the secret is well kept;

THE PROPOSALS

CLOSELY GUARDED SECRET.

(British Official Wireless.) LONDON, April 10. The Budget statement by the Chancellor of the Exchequer, Mr Churchill, which will be made in the House of Commons on Monday, is awaited with keen interest. It is understood that Cabinet yesterday approved of the Budget proposals, which are a closely guarded secret. It is believed that the Chancellor has no intention of departing from orthodox lines in meeting the- difficult situation. Mr. Churchill is spending the week-end in the country preparing his speech. The Health Minister, the Hon. Neville Chamberlain, referring to the Budget in a speech last night, said the Government fully realised the strong feeling that existed as to the serious nature of the burdens of taxation, but he reminded his hearers that by far the greater part of the nation’s expenditure of over £800,OCX),000 annually was accounted for by items which could not be so taxed.

Jf, for instance, the imte of interest on the national debt were lowered, the Government would be breaking its word with the people who lent the money to the State. Moreover, it must be borne in mind what a tremendous injury had been done by the events of last year. But for the' coal subsidy in the first instance, and the consequences of the long stoppage, the Government wouid certainly have fulfilled their anticipations of what they expected to have As a- matter of fact- vast sums had been saved in one way or anothep