BURDEN LIGHTENED

Nelson Evening Mail, Volume LXVI, 19 April 1934, Page 7

BURDEN LIGHTENED

THE BRITISH TAXPAYER POINTS FROM THE BUDGET (British Official Wireless) RUGBY, 17th April. The Budget which -Mr Neville Chamberlain presented in the House of Commons was the first for some years to lighten the burden on the British taxpayer. This was the third successive year in which Mr Chamberlain had presented the Budget. He recalled that in 11)32 many dark clouds still hung around the horizon. Last year, although the outlook was distinctly brighter, there was no settled feeling that they had reached line weather. To-day, 'however, the atmosphere was completely brighter. During the last twelve months the evidence or improvement had continued to accumulate. There had been a small but distinct rise in wholesale prices, the rates of short term interest had achieved new low records, and the position of long term loans had improved to such an extent that stocks such 'as old per cent. Consols actually stood higher today than before the war. Industrial production had very much gone up, and equilibrium had been restored in the country’s balance of payments. Statistics of such things as retail trade, consumption of electricity, transport, iron and steel production, and house building in every case showed a revival of activity. All this, combined with the substantial surplus with which the financial year had ended, had established a new spirit of hope and confidence. Certain unpleasant facts, however, still had to be reckoned with before their troubles would be ended, In an analysis of the year’s accounts Mr 'Chamberlain drew attention to the' extraordinary cheapness of interest on Treasury hills, which over the whole year averaged only 12s Cd per cent. While the amount of amount of Treasury bills and savings certificates together at their lowest point was over £1,200,000,000, interest amounted to little more than £15,000,000 or 11 per cent. During the year £40,000,000 of 4] per cent. Treasury bonds and £24,000,000 of 5£ per cent. United Kingdom dollar bonds were converted into 2 h per cent, conversion loan or conversion bonds.

Turning to the prospects for the future, Mr Chamberlain said that neither last year nor. the year before had he made provision’ either for the payment of war debt to America, or for the receipt of war debts or reparations by Britain, and in the absence of aiiy further .development lie proposed to follow, the same line this year. Fixed debt charge would stand at £224,000,000. Among the items of ‘expenditure, he mentioned that the continued decline in unemployment enabled a saving compared with last year of £10,088,000. Provision had to be made for such measures as tlie slum clearance campaign, better marketing for agricultural products, and improvements in rural water supplies, hut taking a reasonably optimistic view of the course of trade lie was justified in expecting a larger income from all most important sources of revenue. Cuts in unemployment pay and in salaries, and additional taxation, imposed in 1031 were considered by the Government of the day a temporary expedient to meet a'temporary emergency,, and were accepted iiip’aC brave spirit, lie felt precluded from considering other classes for' relief until a rdugli equivalent of restoration had taken place. '• Striking a filial balance the Chancellor put the estimated revenue for this year at £700,500,01)0, and the estimated expenditure at £705,700,000, thus leaving himself with a prospective balance of £BOO,OOO. The Chancellor ended his speech by inviting members if they wished to estimate the wisdom of the financial policy which the Government had pursued, to glance at what was happening elsewhere. The ChanceObr’s speech lasted 101 minutes. ' • ,t DEBATE COMMENCED WAR DEBT PAYMENTS (Received 10th April, 1.35 p.m.) LONDON, 13th April. In the House of Commons, Mr Morgan Jones, beginning Labour’s criticism of the Budget, said it would be churlish not to rejoice over the improved position, but’ this was due to the world revival, as the depression was a world depression. The May Committee reported that the 1931 Budget was large-' ly balanced by nest eggs. Last year the most formidable nest egg used to balance the Budget was £21,000,000 from the unemployed, yet such concessions as were now made only begin on Ist July, while income tax concessions began immediately. Thus the rich had already reached great expectations, while the poor were left to nleak expectation. The House should have been given more information, regarding non-provision for payments to America. The American public want to know why in view of the surplus it is not proposed to resume payments. LONDON PRESS OPINION APPROACHING RECOVERY (United LONDON, 18th April. “The Times” (Independent) and the “Daily Mail” (Independent), welcome the Budget as convincing proof that Britain is approaching recovery, which will be further stimulated by the method of distributing supplies. The “News-Chronicle”, (Liberal) says that the great expectations to which Mr Chamberlain referred were only half realised. His estimated revenue was only £(27,000,000, which was cautious and narrow. He should have taken a holder view and distributed concessions more generously. “The Times” city editor reports a favourable impression in business circles, leading to a stronger general lone on the Stock Exchange. The reduction of income tax will not only lessen the burden on the taxpayers, but will encourage the financing of new enterprises, and create a valuable stimulation to trade recovery. General rise in industrial shares followed the Budget announcement, business eontinuhicr in Throgmorton Street till a late hour. Big motor interests are particularly active as the result of the reduction iii the lmrse-power tax. which was a real surprise to the public and something the motor trade has been praviim for. The reduction will enable the' British manufacturer to compete with foreigners in the dominion markets. “THOROUGHLY RETROGRESSIVE" DISPOSAL OF SURPLUS LONDON. 18th April. The “Daily Herald” (Labour) describes the Budget as thoroughly retrogressive and complains of the diversion of the realised surplus to a reduction

of the debt when every reputable economist is opposed to such a policy. It argues that tlie, surplus should be carried to an insurance fund thus advancing tlie day when unemployment benefit will be raised to a level suitable for a civilised nation or used to restore all economy cuts, including those of social services.

The “Daily Telegraph’s” (Conservative) political correspondent learns that a conservative calculation of the disposal of the surplus was deliberately done. Cabinet agreed with Mr Chamberlain ;on .the necessity for a margin of safety, hearing in mind the possibility of unforeseen calls, particularly connected with defence. LABOUR AND LIBERAL COMMENT (Received 19th April, 11.55 a.m.) LONDON, 18tli April. Labour ‘comment on the Budget is epitomised in a. single sentence, “ £3,500,000 for the unemployed, £20,000,000 for the direct taxpayer.” The Liberals consider it unjust to reduce the. standard rate of income tax' irrespective of the size of income. Special allowances should be ,made to shift the burdens from the poorer .taxpayer. Mr Chamberlain’s reference to “inevitable additions to our expenditure” is regarded by Commoners as an indication that he foresees the necessity for increasing armament expenditure.

The “Yorkshire Observer” states that on tlie authority of an ex-Minister, Mr Chamberlain rejected the proposal for. a housing loan’, as lie intends to issue an grniaments loan,later in the year. Tlie “Observer'’;'adds: “It is an extraordinary scheme, envisaging the use of war-time methods.”’ EFFECT ON MARKETS \. ■ - BURST OF ACTIVITY y' • (Received I,9th April, 11.55 a.m.) LONDON, 18th April. Markets opened excitedly this morning when the Budget induced a burst of activity. Motor shares received the biggest fillip for vears. Industrials and giltedged stock were strong, blit quietened later owing,to profit-taking. Gold mines were firm, hut were overshadowed, by the activity in other sections. VIEWS OF FRENCH PRESS (Received 19th April,’ 11.55 a.m.) PARIS, 18th April. The French press says there is tribulation over England having won the financial battle, and emphasises the absence of provision for war debt payments. DIPLOMATIC SILENCE IN ITALY (Received 19th April, 11.55 a.m.) ROME, 18th April. In view of Signor Mussolini’s drastic cuts, the British Budget is not even mentioned in Italian newspapers.