CHEERFUL OUTLOOK

Hokitika Guardian, 8 July 1935, Page 5

CHEERFUL OUTLOOK

BRITISH BUDGET CONSIDERATION IN COMMONS. (United Press Association—By Electric Telegraph—Copyright) LONDON, July 5. In moving the third reading of the Finance Bill in the House of Commons, the Chancellor of the Exchequer, Mr Neville Chamberlain, said that in the four annual budgets he had introduced he had endeavoured to conduct Britain’s finances in such a manner , as to make it possible shortly to remove the burdens which had been imposed upon the British people in the financial crisis of 1931. and which were the price that had to he paid for recovery of the equilibrium and the restoration of the national credit.

His last budget had brought him very near to the completion of mis task, which could not have been carried through without, the co-operation of all classes. He had been careful to avoid the risk of anticipating a recovery before it was really secured.

The reduction in income tax made last year had been justified by the expansion of trade which followed. The smaller sum available for this purpose this year had been distributed mainly to income tax pavers on the lower scale of incomes, the full effect of which would' be felt next year and would amount to over £18,000,000, as against £10,500',000 which they were costing in the current year. Over 2,250,000 taxpayers would ho directly affected by the increase in income tax allowances. In addition, on Monday, there had come into the enjoyment of the full restoration of wage cut* some 6.500 police, ,130,000 .teachers, 430,000 soldiers, sailors and airmen. and 420,000 civil servants; altogether nearly 1,200,000 who were receiving the benefits of this year’s budget. Also a great number of people, entertainers and entertained, would benefit from the remissions of the entertainment tax.

“Fortunately,” continued Mr Chain herlain, “The outlook remains persistently and doggedly cheerful. Indications of tin's progress Could hardly he more satisfactory. The index of production is now at the highest figure ever recorded, and actually on&third higher than last year. That clearly points to even further activity ahead of us. Railway traffic, hank clearings and the retail trade all show a steady rise. Exports are up by £16,000,000 for the first five months compared with last year, and once again we are looking ahead The best barometer you can have there is imports of raw material. In May they were £1,000,000 more than they were in May of last year. All these figures show the direction of the wind and happily thev still point in the same d> rection. They are all hopeful, and, in niv view, they confirm- and justify a spirit of reasonable optimism.”