BRITISH FINANCE

Hawke's Bay Tribune, Volume XXI, Issue 212, 21 August 1931, Page 4

BRITISH FINANCE

STIFF TAX INCREASES DEPARTMENTAL ECONOMIES. TARIFF DEBATE ADJOURNED. FORECAST OF CABINET DECISIONS. Telegraph—Press Assn.—Copyright. London, Aug. 20. The “Daily Herald’’ says the following are believed to be among the Cabinet decisions: — The Empire Marketing Board Is to be retained. There is to be no reduction in the scale of unemployment benefits. The salaries of the higher paid Ministers are to be reduced 20 per cent, and others correspondingly. The salaries of judges, senior civil servants and teachers are to be reduced, also the pay of the police. A series of department economies is to be effected. Stiff increases in direct taxation with a possible tax on fixed interest-bearing securities. The debate on a temporary tariff for revenue purposes has been adjourned. Another report states that Cabinet rose at 10.35 o'clock last night. It is understood the Ministers reached a provisional agreement regarding the method of balancing the Budget, but there was no decision as to tariffs. The surprising development outlined in the “D'aily Herald” is the dominating topic in political circles all day long. There is much comment on the irony of the mere suggestion that the Labourites might introduce a tariff instead of the Conservatives, and the report was sufficient to cause a rally in securities, especially certain industrials, though the City is firmly convinced that the present most urgent need is economy, not taxation. Well informed people state that the "tariff proposal was not submitted to Cabinet with the recommendation of the economy committee, but was merely one of several plans prepared by Treasury experts as an alternative to others. Mr Snowden’s attitude is frigidly unsympathetic. “The Times” says: “The forecasts of the proposals indicates that they are almost exclusively concerned with fresh taxation. There is no suggestion of any sweeping plans of reducing expenditure and a Budget balanced otherwise than by economy won’t really be balanced at all.”