DEFICIT OF £14,500,000

Poverty Bay Herald, Volume LV, Issue 17235, 15 April 1930, Page 8

DEFICIT OF £14,500,000

BRITAIN’S FINANCES REVENUE £11,750,000 SHORT INCREASE IN EXPENDITURE HEAVY' TAXATION INCREASES. (British Official Wireless,) Roc. 2 |>. 111 . RUG BA . April 14. Mr. Snowdon made liis Budget statement- this afternoon lo a House, of Commons crowded in every pail. lie said I hi' financial year ended on .March 31 close,l with an actual deficit, of £14.500.000, instead of the estimated surplus of £4,000.000. The revenue fell short of llie estimate hy £11,750,000. There were deficiencies on spirit duty of over £1,400,000, and on beer duly „f nearly £1,800.000. The sugar duty was ivarly £1.000.000 short. On the other 'hand, tobacco duties continued to show their good record, yielding a surplus of £2.800,000. Income tax. yielding £237.500.000, was £2.000,000 ’below' the estimates, ihough it' showed an advance, on the yield of previous years, if the various changes in the rate of the lax were taken into account. So far. therefore, as income tax might, be taken as n barometer of the nation's prosperity, one was entitled at least to say that industry as a whole had continued to hold its own. The surtax was £1.500.000 below the estimates. Stamp duties, owing to the decline in Stork Exchange transactions, fell short of the estimate hy the large sum of £6,250,000. 50 PER CENT. DEATH DETY. With regard to expenditure, Mr. Snowden said the Ministry of Labor required a supplementary estimate of. nearly £7,750,000. On other services there was a, saving of about £1.000,000. It was thus that- the total expenditure exceeded the estimates by £6.750,000. Mr. Snowden estimated the total expenditure for the current year at £782,000,000. He estimated the (lie basis of existing taxation at £739,750.000. The difference which he. had to make good was over £42.000,000. Mr. Snowden announced changes in taxation by which ho proposed to raise this amount. The standard rate of income tax would be increased by 6d to 4s 6d in the £l. Small incomes, however, would still pay only 2s on the first £230 of taxable income as at present, so that, three-quarters ol the income tax payers would not ho affeeied. The surtax would be increased. The increase in the initial rate of surtax would be from 9d to Is in the £l. On an income in excess of £50.000 a veat' it would be from 6s to 7s Oil. Willi regard to death duties, be proposed to amend the existing scale bv inneases of from 1 to 2 per cent, on estates from £120,000 to £250.000, and to increase the scale gradually from £250,080 onwards to reach a rate of 50 per cent, on estates of £2.000.000. The duty on beer would be increased by the equivalent of Id per gallon, which was too small to justify any alteration in the retail price. Regarding safeguarding duties, the Chancellor of the Exchequer said these nut ios were not primarily revenue duties, and under the Acts imposing tjiom lour of them were due to expire this y ar, namely, the duly on lace, on June’ 30, and the duties on cutlery, gloves, and gas mantles on December 31. He proposed to allow these duties to continue till the respective dates, but not to renew I bent. The consequential loss to Hie revenue would be £521.000 this year, am], £823.000 in a full vear. . McKENNA DUTIES REMAIN. In regard to the McKenna duties of 33 1-3 per cent, on imported motor cars, clocks, watches, musical instruments. and cinema films. Air. Snowden said he regretted that the financial position would not permit- him to carry out- litis year the flovernincnl’tj pledge lo remove all fiscal'- duties, but it was the, Government's intention to do so before litis Parliament ended four years lienee. Mr. iSnowflon added that the Government intended to levy a contribution on land values. The first essential step was to prepare a valuation list, which must take some time. He proposed to provide for a- valuation in ■a. separate bill. Regardinet the position of the national debt, Air. Snowden said that- during the past, financial year the total deadweight debt bad boon reduced from £7.500,000.000 to £7,469.000.000. and the floating debt bad been reduced from £837.000.000 to £737.000,000, which was Iho lowest- level recorded since the war. Parliament adjourns on AVedpesdav for Easter, and tho Budget debate will bo continued after its reassembly.