NO CONCESSIONS

Otago Daily Times, Issue 22826, 10 March 1936, Page 9

NO CONCESSIONS

TAXATION IN BRITAIN INCREASED COST OF DEFENCE (United Press Association) (By Electric Telegraph—Copyright) LONDON, March 8. It is now evident that the Chancellor of the Exchequer will not be able to make tax concessions in the Budget. The Defence Estimates alone are nearly £34,000.000 above those of last year. The cost of the White Paper proposals depend partly on the reactions of other countries to the British rearmament programme, but the city estimates that at least £20.000,000 will be required in 1930. The Civil Estimates show an Increase of £4,000,000. The Chancellor will thus be obliged, assuming the debt services are the same, to find £772,600,000. The Chancellor last year budgeted for £734,470,000. The revenue is expected to exceed the estimate by £20,000,000, thus leaving Mr Chamberlain with a further £20,000,000 to find in order to cover the £772,600,000. The city considers that the buoyancy of the revenue may suffice to meet the demands, but that there will be no room for tax concessions. It is fortunate, however, that the new liability has' come at a time when the revenue is buoyant and business active and even thriving in many districts. The general tone of the Stock Exchange is dull rather than reactionary. The commodity markets, however, are brighter. Copper, lead, tin, rubber, and cotton are all higher. No doubt there will be the keenest demand for merinos at the London wool sales. The Bradford stocks are low and are generally expected to show a 5 per cent, advance on the January series. Part of such an advance has already been made at Bradford, whore the consumption. continues good, tending to stimulate keenness. The London supplies of crossbreds are regarded as small for this time of the year. Importers consider it unlikely that they will be able to buy New Zealand wools any cheaper than the present prices. On the contrary an advance of 5 per cent, is forecast for fine crossbred types. Medium and low crossbreds will probably advance from 5 to 7} per cent. A substantial demand for slipes is expected as the stocks are low in Yorkshire. Fair quantities have been bought in London since the January sales. The disposal of the New Zealand clip is obviously proceeding at a faster rate than last year. Most of the purchases appear to be for the United States, and not for speculation. The general tendency for butter .is for, lower levels, a feature of the week being the activity in under-graded butter, which is selling freely within 2s or 3s of top qualities. Danish is also lower. The aftermath of the Smithfield strike is still affecting meat. Heavy accumulated supplies cf home-killed are still being cleared at lower prices. The market is .likely to recede further, as more than 1,000,000 New Zealand and Australian carcasses are afloat. BIGGEST BUDGET FOR YEARS LONDON, March 8. With the publication of the Air Estimates on March 6 it becomes apparent that the country is faced with the biggest Budget -in recent years. The Estimates show the following increases compared with last year; Royal Navy, £9,880,000. Army, £5,731,000; Air Force, £18,350,000; civil, £12,275,000; revenue, £330,000. Mr Chamberlain last year provided an additional £8,000,000 for restoration of salary and wage cuts, and must_ also this year moke substantial provision, probably £20.000,000, towards the new defence programme. The Budget, therefore, is likely to approach £800,000,000. Lord Snowden’s Budget in 1931 amounted to £802,000,'000, but included £52,000,000 for the Sinking Fund.