Britain Balances Budget

Manawatu Times, Volume LV, Issue 6839, 21 April 1932, Page 7

Britain Balances Budget

Three-quarters of Million Surplus BUT NO RELIEF FOR TAXPAYERS l FIRST INSTALMENTS OF TARIFF. Cnited Press Association. —By Electric Telegraph.—Copyright, LONDON, April 19. The Chancellor of the Exchequer, Mr Neville Chamberlain presented liis first Budget to the House of Commons to>dav. Mr Chamberlain said Lord Snowden’s emergency Budgot in the autumn 01. 1931 was unprecedented for a century. It was a model of sound and sane finance. “We aro now nine million.- better off than Lord Snowden anticipated.” The economies amounted to 34} millions instead of the estimated 22} millions. The reduction of unemployment had aided the Exchequer and income tax yielded a surplus of fifteen (millions over the estimate. The Chancellor said the present position was that the total expenditure was £766,000,000 and the estimated revenue £731,500,020, leaving a deficit of £34,\750,000. , He would make an order under the Import Duties Act, based on the Tariff Committee’s recommendations, uefore the end of the week. This would yield live millions of additional -ecciots and would bring the total to £764,000,000, reducing the deficit to £1,700,000. Since the Budget had been balanced there had been an inward flow of-liq-uid capital flattering to our credit but somewhat embarrassing to trade. _ We must avoid violent currency fluctations, ifor which he proposed to build up an exchange equalisation account. For this purpose, lie would ask the House for power to borrow £150,000,000. Dealing with the anticipated position at the ond of the financial year, the Chancellor said a surplus of three-quarters of a million sterling was expected. The figures were as follows: Estimated revenue .. £766,800,000 Estimated expenditure £766,00'4,000

Surplus .. ~ .. .. • • £796,000 , There would be no relief to income tax payers tliis year. There would be no reduction in the beer tax. A duty was being imposed on foreign tea of 4d per pound, with a preference of 2d on Empire tea. Voluntary schemes of employers paying tax and deducting instalments from employees’ wages ought to become a permanent system. During the next five years the preference on imported colonial sugar will be increased by a shilling per hundred weight. A special supplementary preference of another shilling on a limited quantity of sugar will be allocated by tiie Colonial Office among the sugarproducing colonies. The foreign and ■Dominion sugar duties are not altered.

Budget Disappointments NO REDUCTION OF BEER AND INCOME TAXES. DUTY TO GO ON IRON AND STEEL MAIN PREFERENCE ITEMS LEFT FOR OTTAWA LONDON, April 19. Lobby opinion admits that the Budget was one of the dullest on record, though it is agreed that Mr Chamberlain was in a.most difficult position. The .■chief criticisms arc directed at his inability to reduce the beer duty and revise the income tax allowances to married people. The reduction of the beer tax was so generally anticipated that a number of brewers placed posters in the public houses a.nd clubs announcing an immediate reduction of a penny a pint.

The only other matter of comment is the new preference to colonial sugar. A director of Messrs Tate Lyle, Ltd., ■sugar refiners, expressed the opinion that it would not affect prices in Britain as the duty was paid to the producers.

Though Mr Chamberlain carefully avoided naming the articles oil which the new import duties will be imposed before the end of the week it is taken for granted that these will be iron and steel. ' It is surprising that there was no additional preference for the Dominions. Presumably this is being left for Ottawa. Members of the Commons generally ■approve of the exchange equalisation account and consider it ought to help the movement towards sterling union .which was going on all over the world. Sir Basil Blackett, who is a director of the Bank of England, however, expressed the opinion that it should be described as the regularisation and simplification of the system already in existence.

Labour critics of Mr Chamberlain 'ask: Will the 150 millions be handed to the Bank of England or be controlled by the Treasury and what level of stabilisation will be aimed at.

No Remission of Taxation WHOLE COUNTRY DISAPPOINTED. Received Wednesday, 10 p.m. LONDON, April 20. Editorials all voice the country’s disiappointment that there is no remission Jn taxation but recognise the Governtalent'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 bard Budget based neither on vague optimism nor clever or dishonest stratagems. Moreover, Mr. Chamberlain, without precedent for a number of years, has given a genuine sinking fund entailing a debt'redemption of £32,000,000 which is email but creditable.

The only passage in the speech which •tvas cheered by all parts of the House /wa3 Mr. Chamberlain’s almost perfunctory reference to economy wherein opart from the Ministry of Labour Note only £14,000,000 was to be saved. The News-Chronicle describes the Budget as "a carry-on Budget,’’’ which proves that the country is by no means

out of the wood. All classes must steel their hearts to continued effort. The Daily 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 of the economic blizzard is past, otherwise the Estimates may prove over generous.