BRITISH BUDGET

Manawatu Standard, Volume LX, Issue 122, 22 April 1940, Page 7

BRITISH BUDGET

DOUBLE LAST YEAR OPINION OF EXPERTS. CHANCELLOR’S TASK. (United Press Association —By Electric Telegraph.—Copyright.) (British Official Wireless.) Received April 22. 10.55 a.m. RUGBY, April 20. In the coming' week the business of the House of Commons will be largely taken up with the Budget, which the Chancellor of the Exchequer (Sir John Simon) will present on Tuesday. Perhaps owing to the fact that no detailed estimates of service expenditure have been made and so little of the financial position is known, speculating on the Budget has been greatly reduced this year. It is certain, however, that Sir -John Simon will have to budget for a far larger expenditure in 1940-41 than the £1,816,000,000 spent in the past financial year. Financial experts, in fact, behove the expenditure may well ■ be double last year’s figures. Meeting expenditure on such an astronomic scale, it is universally agreed, will be a task with which no previous Chancellor has been faced. It is pointed out, however, that not more than a fraction of the total expenditure can be met from immediate taxation. The newspaper observer suggests: “In fact only about one-third of the expenditure on the war has been superini nosed on the existing debt charges, and the normal services will lie found out of revenue. The balance will have to be met bv further borrowing.” further taxation. It is not denied, however, that increased taxation in some directions will be necessary. In view ol the fact that Sir John Simon, when he introduced the Supplementary Budget in the autumn, announced not only the rate of income tax immediately to be levied, but also that lor the presentfinancial year, it is felt in the city that there is no likelihood that the already' very high level of income tax will be iurther raised. The surtax is also considered to have reached a level hardly possible of increase. Tobacco and beer are picked upon bv Budget speculators as the two commodities most likely to suffer further tax increases. It is considered almost certain that postage rates will also be raised. It will be recalled that the letter post rate was raised to 2d dur* ing the last war.