BRITISH BUDGET

Nelson Evening Mail, Volume LIII, Issue 103, 2 May 1919, Page 5

BRITISH BUDGET

j ABNORMAL FINANCIAL DIFFICULI TIES

PEOPLE LESS INCLINED TO LEND

(Australian & N.Z. Cable Association'

LONDON, April 30,

In the new Budget the income-tax is unchanged. Wine is sixpence on the lower duty, and ninepence on the high-

er. Mr Chamberlain, in delivering the Budget, said the excess profits tax would be abolished as soon as possible. It would be 40 per cent, this year, yielding £50,000,000, The principal preferential articles were tea, cocoa, sugar, tobacco, rum, motor spirits, cinema films, clocks, watches, and musical instruments. The preference on spirits consists of a surcharge of half-a-crown on foreign spirits. The reduced tax on tea would operate from June 2nd. He anticipated that the total loss of revenue involved would be £2.300,000.

British loans to the Allies and the Dominions included £171,000,000 to the Dominions. The death duties were advanced on estates of beif.vccn £15,000 and £20,000 from 5 to 6 per cent. ; on estates between £1,000,000 and £1,500,000 from 30 to 32 per cenlfc.; and over £2,000.000 by 40 per cent. Mr Chamberlain, addressing a comparatively small House, said bis difficulties were abnormal. People were less inclined now to lend their savings than in war time, and there was not the same disposition to accept burdens without grumbling. The revenue had exceeded the estimate by £47,000,000, while the expenditure was £393,000,000 below the estimate. The daily expenditure prior to the armistice was £7,443,000, and subsequently £5,476,000. The National Debt at the end of March was £7.435,000.000. The estimate of revenue for 1919-20 included £300,000,000 excess profits. We were in a better position to face the future because our percentage of revenue to expenditure was the great, cst of all the belligerents. The estimated revenue in a future normal year on the existing basis of taxation was £653,000,000, and of expenditure £766,000.000. He proposed to make the Budget on that basis. The Government proposed that a select committee should consider land value duties, which at present were unworkable. There should be a reliable valuation of land throughout the country. He proposed to review 'the motor spirit duty owing to the expense of collection, and also to repeal the excise duty on benzol, dropping the luxury tax and increasing the spirits duty from 30s to 50s per gallon. Now the price per bottle would be 10s 6d instead of 9s. The beer duty would be increased from 59s to 70s per barrel. Tobacco would not bo changed. He estimated that the extra revenue from spirits would bd £21,000,000, and from beer £31,000,000. In outlining the preference proposals, the Chancellor admitted that he could not disclose a really large policy. His task was only to give effect to the declarations of the Imperial War Cabinet and the War Conference. The present range of Customs duties was not wide, but it could be made wide enough to develop Imperial trade. It was a small beginning, but he predicted that many members would see" 4, a really wide structure erected. It was necessary to bring Customs into line with excise where the latter existed, because preference must not be granted at the expense of the home producer. They must also remember the interests of the Allies. Therefore the general rule of preference must be a reduction of only 7 per cent, on sugar received from Empire sources, and only 2 per cent, on tobacco. The Empire’s production of sugar and to-'■-bated could ■be largely developed. The preference bn sugar equalled 4s a cwt. and bn tobacco 13d a lb. He was grateful for the opportunity of introducing proposals with which his father's name had been associated.

Mr Adamson, following Mr Chamberlain, said the Budget disappointed Labour, because it involved fresh loans and reduced the excess profits tax, and included colonial preference. The workers would not continue to cany their present burdens of taxation while profiteers were allowed to retain their unpatriotic -gains. The profiteers ought to be compelled to disgorge. The Government should control electricity, transport, and other public services. Sir Donald Maclean opposed Imperial Preference.

Mr Chamberlain replied that there would be an opportunity later to voice this opposition. 'Resolutions were authorising the tea, beer, and other duties.

Impeiral preference will be based on the existing duties. It will be onesixth on consumable commodities apart Pom alcohol, and one third on manufactures.

I PREFERENCE

I MOST SIGNIFICANT BUDGET ! FEATURE.

(Australian & N.Z. Cable Association.)

(Rec. May 2, 8.55 a.m.) LONDON, May 1. The newspapers regard Imperial Preference as the most significant feature of the Budget. Tariff reformers are jubilant at the recognition of the principle. Freetraders declare it a mere sham. They say that preference is impossible without a tax on food. The unexpected drop in the excess profits tax causes satisfaction and the increased death duties are approved in all quarters in view of the necessities of the situation. In the lobby, financial opinion is plainly favourable and regards the Budget as sound, hampering industry as little as possible. The balance-sheet is better than anyone dared to hope. The Budget shows a total deficit of £275,260,000. New and icreased taxation for the current year will yield £41,450,000, after allowing for a loss of £2,300,000 on preference proposals, leaving a net deficit of £233,810,000 to bo raised by borrowing. The preference proposals for the full year mvolv a los R of £3,100,000.