BRITAIN’S BUDGET

Inangahua Times, 21 April 1932, Page 3

BRITAIN’S BUDGET

(United Press Assn —By Electric Telegraph—Copyright.) FROPOSdLS CARRIED Rugby April 19 Mr Neville Chamberlain in th< Commons, made his first Budget state' ment, on financiil conditions far hap. pier than those which confront"d his predecessor. Viscount Snowden, a yeai ago. At that time the country was bor. 1 rowing .£1,000,000 weekly to finance the Unemployment Insurance Fund, and Lord Snowden was confronted with a large prospective deficit, Ihe hard facts were faced, and dras ic remedies applied by Lord Snowden in an in’errm budget 1 *st December, with the result that Mr Chamber’ain to-day was able to face a crowded House, with the knowledge that the budget had not only been balanced, but even achieved a small surplus, and that a quarter of a pillion more worKers than a year ago had found employment. 1 The Chancellor spoke for an hour ! and three-quarters. Tbe changes in 1 taxation will be neither numerous nor large. They included no relief for the income tax payer, and no reduction in the beer tax. “Although we are beginning to see the light between the trees, we have far to go before we emerge into smoother ways,*’ be said. He announced a continuance of the concession ol 12s a hundredweight on Homesbeet sugar, a revival of duty on foreign tea of id per pound, and a duty on Empire tea of 2d per pound, an ticipating therefrom .£3,600,000 per annum, a reduction ; from next January of tbe tax on motor j s cycles to 15s, 30s and £3, according I j to wheiher the engine bad a capacity! t not exceeding 150 c.c., or exceeding the latter figure. This change is to give designers a freer hand. Tbe Chancel or announced that a small impartial committee would enquire into the taxation of cooperative societies. He recalled that under Lord Snowden’s budget, by a combination of economy and new taxation, had beep made for a reduction of debt of £32,.

500,000 and a surplus of 500,000. They had the satisfaction of recording that not only had Lord Snowden’s anticipations been fulfilled, but had produced a small surplus of The economies hid bceo more than made good. In addi ion, the reduction in unemployment came to their aid, so in the end, the resuli was economies of They showed saviogs amounting to £34,500,000. The Budget resolutions were carried, and the House adjourned. A CABBY ON BUDGET. LONDON, April 19. The News Chronicle describes the Budget as a carry on Budget. It proves that the country is by no means out of the wood. All classes must steel their hearts to a continued effort.

The Mail says Mr Chamberlain faced the gravest situation courageously and firmly. The measures will greatly enhance his reputation and strengthen foreign confidence in the solidity of British finance. Everyone hopes he is right in predicting that the worst economic blizzard is past; otherwise the estimates may prove over generous. EXCHANGE STABILISATION. CITY AND PRESS COMMENTS. LONDON, Last Night. The city naturally regards the exchange stabilisation plans as the most important feature of the Budget am l cordially approves. The Financial Times says the need of such a fund is self-evident. The tide of liquid capital has set so strongly towards Britain that it might cause the sterling to soar in the absence of a balancing influence and reduce our trade advantage, while dislocation might follow any subsequent marked outward movement of funds. The existence of a large exchange fund is a safeguard against the Budget situation being thrown out of balance and is a warning to speculators, 'that resources are available to prevent injury to sterling trading interests. The Daily Herald’s city editor interprets the decision as meaning that the Government have now definitely decided to embark on a prolonged period of currency management. COUNTRY DISAPPOINTED. LONDON, AJpril 20. Editorials all voiced the country’s disappointment at no remission of taxation, but recognise the Government’s difficulties and hope the financial measures will lead to better times. The Morning Post says: ‘ ‘ The budget is even sterner than the least hopeful prophets anticipated.” The Times says: “It is a hard budget, based neither on vague optimism nor clever, dishonest stratagems.” Moreover, Mr Chamberlain for an unprecedent number of years has givsn a genuine sinking fimd, entailing i debt redemption of thirty-two millions, which is small but creditable. The only passage of the speech cheerad in all parts of the House was Mr Chamberlain’s almost perfunctory reference to economy, wherein, apart from the Ministry of Labour vote, only fourteen millions is saved.