BRIGHTER OUTLOOK

Manawatu Standard, Volume XLVI, Issue 45, 22 January 1926, Page 7

BRIGHTER OUTLOOK

CHANCELLOR OPTIMISTIC. BUT NEED FOR ECONOMY. KEEPING DOWN EXPENDITURE. (By Electrio Telegraph—Copyright.) Received January 22, 10.10 a.m. LONDON, Jan. 21. Mr Winston Churchill, addressing tho Leeds Chamber of Commerce, struck an optimistic note with regard to the future of commerce and industry, declaring that there was undoubted, though slow improvement. Moreover, unemployment had been reduced apart from the coal miners.

Tho world was more peaceful, the harvests were good, and trade was mending.

Apart from the coal subsidy, thqre was every probability that the budget forecasts would work out with substantial accuracy though the coal convention would cost tho country an extra £21,000,000, of which threequarters would bo used for paying the coal miners’ wages. Tho Government was entitled to make a detailed survey of expenditure with the view to curbing increases. These were largely automatic, such as pensions.

“All departments have been asked to frame estim vtes in the most modest manner, yet last autumn I was confronted with estimates for £30,000,000 above the present year.”

Mr Churchill urged that the scheme for economy must hang together and must not be whittled down.—A. and N.Z. cablo. *

SAVING EVERY PENNY.

CHANCELLOR’S TASK,

S.O.S TO REVENUE DEPARTMENT.

LONDON, Jan. 11. Tho exasperation in both Britain and the Dominions at tho Government’s delay in carrying out tho Economic Committee’s recommendations will shortly find expression in a further newspaper demand for tl.eir fulfilment, and also an attack by Conservative members of the House of Commons when Parliament ro-as-sembles next month. The £1.000,000 intended for publicity aud research throughout Britain should by now be partly spent in stimulating sales in conjunction with the “Buy British Goods” campaign. Inquiries show that tho Treasury is the chief culprit, and has been hoping that everybody would forget the matter until tho next Budget is presented. Tho Chancellor of the Exchequer, Mr Winston Churchill, is battling to save every penny, and-is too deeply immersed in his Budget to remember the promino. TAXPAYERS’ QUANDARY".

The Standard says that Mr Churchill, owing to the certainty of a deficit (mainly owing to the coal subsidy), and, in view of the difficulty of finding £100,000.090 with which to balance the Budget, lias sent an S.O.S. to tho Inland Revenue Department. The latter, pointing out that there is no hope of increasing tho revenue from Customs, excise, the Post Office or the land tax, has begun to chastise the super-income tax payers with scorpions, demanding detailed accounts of dividends on investments as far back as 1921. Directly these are received the harassed income tax collectors must check tho taxpayer’s return by reference to tho concerns which paid the dividends. Thousands of taxpayers are in a quandary, being unable to supply details five years old. Many liavo thus been forced to accept tho authorities’ revised estimates and pay their demands. An additional turn of the screw removes tho advantage of sixpence reduction in tho income tax granted in tho 1925 Budget. Householders also are forced to pay income tax on increased valuation of their houses, amounting to one-third abovo tlio municipal assessment.