BRITISH POLITICS

Pahiatua Herald, Volume XIV, Issue 3310, 1 May 1909, Page 5

BRITISH POLITICS

MR LLOYD GEORGE’S BUDGET. A HEAVY DEFICIT. Electric Telegraph—Press Association. Copyright. London, April 29. The Right Hon. D. Lloyd George, Chancellor of the Exchequer has issued a White Paper embodying the facts usually contained m the first part of the Budget. This statement shows the following results:—Estimated revenue, 1908-9, £154,350,000; actual revenue, 1908-9, £156,578,000. Estimates lor the coming year are as follow:—Estimated expenditure, 1909-10, £164,152,000; estimated revenue, 1909-10, £148,390,000, leaving a Budget deficit of £762,000 (,?). (The figures are given .as cabled, hut evidently there has been an error in transmission. The actual difference between the two sums is £15,762,000.) The decrease in the expected revenue was due to the necessity of estimating a reduction of a million in Customs, and a million and a half in Excise, as compared with 1908-9. The aggregate of incomes assessed for income tax was 1040 millions, on which a pennv ill the pound produced £2,833,000.'' The National Debt amounted to £754,121.309. The diminution in foreign trade in 1908 was 114 millions, of which from a third to a half was accounted for by a general fall in prices below the 1907 level. It was .impossible, says the statement, to prophesy an immediate rapid recovery, but there were some indications that foreign trade was beginning to improve. The death duties amounted to £18,370,000.

PROPOSALS OF THE CHANCELLOR.

DUTIES INCREASED

TAX ON UNEARNED INCOMES RAISED.

London. April 29. Mr Lloyd George has delivered his Budget speech in the House of Commons. The proposals include :—A reduction in the sinking fund; ail increase in the death and succession duties : a heavy increase in the spirit duties : an increase in the taxation On unearned incomes; an increase of the tobacco duty. Beer, tea and sugar are unchanged.

PROPOSED NEW TAXATION. London, April 30. The House of Commons was crowded with the exception of the strangers’ gallery to hear Mr Lloyd George deliver Ins Budget speech. The Chancellor of the Exchequer spoke for four and a half hours, and claimed that the increased expenditure had been substantially incurred with the unanimous assent of all parties. The growth of temperance had added considerably to the financial difficulties. The Government had to find 016.600,090. which would leave a surplus of £488,000. He proposed to meet the deficiency by reducing the contribution to the Sinking Fund by three millions, and an income tax on earned incomes lie Jo w £2OOO. The tax on incomes of £2OOO would remain at ninepence. The tax on incomes of £3OOO would be one shilling, and above £3OOO ls~’4d. There would be a further super tax ot 6d ou incomes over £SOOO. The income tax changes would yield three and a half mi limns, and it was expected that the super tax in the following year alone would yield £J,300,'000. 'Die sum of £2.850,000 would be raised by a revision of tire estate duties, and £650,000 by an increase in the stamp duties on share transactions. Motors would be taxed' from 40s to 40 guineas, according to horse-power, doctors’ cars paying half taxes. Motor cycles would he tax<d £l, petrol threepence a gallon, with a rebate of a halfpenny to commercial cars. The motor taxes would yield £600,000, which would lie spent on the improvement of roads. The proposed new land taxes would produce £50u,000. An increase of eightpence in the pound on manufactured tobacco would yield £1,900,000. and ail increase of 3s 9d per gallon on spirits would yield £1,600.(XX). A revision of the liquor licenses and a uniform percentage on the annual value would produce £2.600,000. Mr Lloyd George suggested that the whisky duties would justify an increase in the retail price a halfpenny a glass. The Government were considering an industrial insurance scheme, which would be compulsory, self-contributory, and State-addled while preserving the interests of the existing benefit societies. It was proposed next -"ar io give pensions to workhouse septuagenarians. THE NAVY. GOVERNMENT WILL NOT AVOID OBLIGATIONS. London, April 30. Mr Lloyd George concluded his speech by remarking that the greater part of the cost of the Dreadnoughts would fall on next year. If the contingent Dreadnoughts were built the naval bill would be gigantic. Nevertheless, the Government did not intend to avoid their obligations. Failure to fulfil their obligations would not be Liberalism, but lunacy. The inert used yield from the new taxes would make the necessary provision lor the Navy next year possible without resort to the vicious expedient of a Joan.

The House, agreed to the spirits, tobacco and petrol duties, by 281 votes to L2O.