THE BRITISH BUDGET

New Zealand Times, Volume L, Issue 11497, 18 April 1923, Page 5

THE BRITISH BUDGET

MR BALDWIN LIGHTENS BURDEN OF T&XATIO3 CORPORATION AND INCOME TAXES REDUCED BEER A PENNY A PINT CHEAPER STRICT ECONOMY TO CONTINUE \ The peak load of taxation in Britain has been reached, said Mr Stanley Baldwin, Chancellor of the Exchequer, in presenting the Budget to the House of Commons. As was predicted, the burden on industry is to be lightened by a reduction- of 6d in the £i in corporation profit tax. The income tax is to be reduced by 6d in the £l. Beer is to be id a pint cheaper. The surplus of last year is to be devoted to' the redemption of war debts, and a further provision is made for the payment of 40 million pounds this year. The policy of strict economy is to be continued.

LAST SURPLUS DEVOTED TO DEBT REDEMPTION. HOW THE SURPLDS AROSE. By Telegraph.—Press Assn.—Copyright. Australian and N.Z. Cable Association LONDON, April 16. The Chancellor of the Excequer (Mr Stanley Baldwin) delivered his Budget in the House of Commons. The financial year, he said, had become steadily better as it proceeded. Unemployment, though still grievous, had decreased. There was a surplus of £101,000,000, which had gone to the reduction of the debt, but there would be plenty of debt for the'present generation’s grandchildren to deal with when their, time came. Customs and excise duties showed a surplus of £7,000,000 over the estimate, and inland ■ revenue yielded £36,300,000 over the estimate. The surplus for the year arose from the best of all ppssihle cauceß—a reduction in expenditure, which “Was" £97,000,000 less than the estimate. The surplus would he devoted to a reduction of the debt. BURDENOF DEBTHOW'BRITAIN WILL PAY. (Received LONDON, April 16. In four yeans, Britain had Reduced the external debt by 209 . millions, 'and the' internal floating debt, from 1030 millions to 810 millions. She had only to face this year 841 millions of 5 per scent. bonds;:-maturing in September and February. Nothing would ease the task of finding capital for industrial purposes so much as a steady redemption of the public debt. t He did not intend to provide any margin for Supplementary Estimates, but intended to do his utmost to secure further economies. He proposed to provide a Sinking fund of 40 millions this year, 43 millions next year, and 30 millions, the maximum, thereafter. Britain's debt burden was very .heavy —interest alone absorbed over 300 millions per year. - ■ SURPLUS' ’EXPECH32D:' He estimated the total expenditure for 1923-24 at £806,616,000. It was estimated that’ Customs afid excise duties would yield 274 millions and inland revenue 44omillk>hs. The total revenue was eetimated at. £832,650,000. The reduction in taxation was necessary, but would it help if he ha<T to re-impoee it next year ? He was greatly- attracted -by -the pro- 1 posed tax on. betting, but he had not had sufficient opportunity for examining the matter. He intended to remit it to a Select Committee. It was intended to effect postal reductions to the extent of Si millions yearly. The beer duty was reduced to make the retail selling price a penny a pint less. There .was also to be a reduction of 6d in the £1 in the income tax. The, corporation profits tan would he reduced 6d on profits after June 30th, The various reductions would cost £34,150,000 this year.. Mr Baldwin said he believed the peak load of taxation - had been reached. THE DEBATE OPENS LABOUR LEADER’S CRITICISM. Mr Ramsay Maodonald, Leader of the Opposition, opened the debate. He said that on the great fundamental point of debt reduction, the Chancellor had shown, courage and wisdom not shown by any of his predecessors since the war started. He regretted that no mention had -been* mack of a capital levy, such as the Labour Party would undoubtedly try. He desgribed aa false the argument that the reduction in the income tax would mean a larger amount for investment, and a consequent increase in the volume of trade. Of the sixpence, not) more than a penny would go to stimulate trade: the rest would be spent in parasitical forms of luxury. He denounced the decision not to reduce the sugar tax, which was a harden on the working classes, who in tea and sngar found 40 millions yearly. The Labour Party’s view was. that the only way to increase trade was to increase the standard of living of the 1 masses. Sir-Alfred Mond (Nat. lab.) said the Liberals would support- Mr Baldwin's attempt to reduce expenditure in every direction. He thought last year’s surplus should not be swallowed np by the maw o § the vast sea of debt redactions. Xu would have been better to devote the surplus' to vast' roadmaking schemes, and to assisting agriculture, which: .would rednce_ unemployment without further taxation. He Was surprised that Mr Baldwin should refer the' proposed betting tax to a committee, instead of the Government deciding the question. Mr J. F. P. Rawlinson (Con.) welcomed the betting tax inquiry. He ’strongly opposed betting,..and. believed it would be good for the country to tax it. The taxation resolutions were agreed to. „ The House adjourned. EXTENT OF REDUCTIONS. It is estimated that the various reductions provided for in the budget will amount'm the aggregate as follovvs:— £ Income tax 26,000,000 Corporation tax 12,500,000 Postal charges ......... 1,560,000 Telephones, 840,000 Cider and minerals ... 335,000

OPINIONS ON BUDGET “CAREFUL. BUT COMMONPLACE." Lobby opinion regrets that the whole corporation tax has not been taken off. The genera] comment is that it is a careful, bnt a commonplace Budget. The National Liberals hold strongly that by putting 101 f millions last year and 40 millions this year to debt reduction, the Government is making the burden on industry too heavy. In view, of the huge realised surplus, 25 millions for debt reduction would have been ample, enabling the Chancellor to take one shilling off the income tax, and to reduce the .sugar duty. The Labour Party say it is a rich man’s _ Budget. They will propose a reduction of the sugar duty to sevenpence. and the abolition of the rlnty on dried fruits. Labour members consider the brewers, in view of their large profits, should contribute more than four shillings a barrel towards the cost of the.beer reduction, as the Government is giving a rebate of 20 shillings a barrel. The “Daily Express’’ congratulates the Government on a sound, successful, and popular Budget. The “Daily Chronicle’’ describes it as a mean and ungenerous Budget, in which the needs of women have been forgotten, while the needs of social reform have been ignored.

A SHORT ADf>REBB

DEVOID OP ORATORY. The House was crowded to hear Sft Baldwin’s address. It is the first Budget prepared by a Conservative Government sinpe 1905. ' < Mr Bonar Law was received with sustained cheering. He is still suffering from laryngitis, and will be unable to take part in the Budget debate or to speak in the House at all far * fortnight: v Unlike , Mr Gladstone, who used * to refresh himself with an egg .hip, .and Mr G. ■J. Goshen, who sipped brandy and water, Mr Baldwin relied on two glasses of water. His speech was remarkably short, and it lasted only an hour and a half. There were no oratorical embellishments, but unlike some earlier Chancellors, every word was heard and every point mad* plant. CRIES OF "SHAME I” Almost .the only interruption cams; when announced that) there would he no reduction in the! duties on tea mid sugar. There were* cries of “Shame!” from the Labour; benches j Mr Baldwin explained that there was a world shortage of sneer, and if the duty were reduced the demand would increase* and the pries would go up, so that the consumer would lose all benefit, hut he hoped the conditions' of the world’s markets would justify • reduction of the duty at an early date, LAST YEAR’S SURPLUS. In a* interesting paestwe in Hie speech, the Chancellor explained why. the surplus of 100 millions was automatically applied to the reduction of debt. He said it was a misapprehension to think that this was still m our 1 possession. To hold up a surplus of 100 millions in the Exchequer would produce a crisis of very great severity on the money market, and make it impossible to collect income tax reven w for the last quarter of the year. DOMINIONS’ DEBT. Incidentally, Mr Baldwin said tbs amount owing by the Dominions and Allies is 2095 millions, of which Australia owes £90,298,000, New Zealand £29,482,000, Chnada £13,810,000, and South Africa £12,884,000. POSTACE RATES LETTER CHARGES DOWN TO l|D. The new postage rates have been announced. The rate for letters inland will be l}d for two ounces, and fd for each additional two ounces. - For carriage -to British possessions aid United States ljd will be charged for the first ounce, and Id for each additional ounce. On printed papers, tlx rate will be Id for two ounces, ana' fd for every additional two ounoes, up to two pounds. Telephone rentals are to he reduced by £lO a year, and public calls will bo charged 2d, instead of 3d. DUTIES REPEALED. The duties ou cider and Sherry aio to be repealed. The duty on mineral waters is to bs reduoed by one-half.