ALLOWANCES FOR CHILDREN GIVE SUBSTANTIAL RELIEF TO THOSE PAYING INCOME TAX.

Star (Christchurch), Issue 18448, 26 April 1928, Page 4

ALLOWANCES FOR CHILDREN GIVE SUBSTANTIAL RELIEF TO THOSE PAYING INCOME TAX.

(United Press Association.—By Electric Telegraph.—Copyright.) (Received April 26, 10.30 a.m.)

LONDON, April 21. MR WINSTON CHURCHILL, in presenting the Budget, said: “ Unless a catastrophe on a great scale happens, the finances ought strongly to revive in 1929. Through the steady revival ot

trade and business 1929 should be a year of real advance towards prosperity. Indeed, my position in 1929 promises to be the least unsatisfactory that 1 have bad during my tenancy of the Exchequer.” He kept bis surprise announcement of income tax relief until the last, staling that the resources had not allowed of a reduction of the standard rate, but he realised that the burden of bringing up children should be lightened where possible, therefore he proposed that the allowances for children, which were at present £36 for the first child and £27 for others, should be raised to £6O and £SO respectively. Furthermore, a concession would be made that the allowances should he applicable to the year of the child's birth. This would mean that a married man with three or more children and receiving an income of £4OO annually would be free cf tax. If he were receiving an income of £SOO annually it would mean that his present tax would be halved. If he were receiving £7OO the reduction would be seventeenpence on a standard rate: on £BOO the reduction would be fourteenpence, and on £IOOO the reduction would be eiglitpence. The cost of the reductions would amount to £2,100,000 for the present year, and £4,500,000 for a full year. Mr Churchill spoke for 3 hours 11 minutes. Mr P. Snowden congratulated the Chancellor on a brilliant Party achievement. He welcomed the allowances for children and also the rating scheme. His only criticism of the latter proposal was its delay till 1929. Mr Lloyd George welcomed the income tax exemptions and characterised the rating relief as a most dominant and important feature. The House rose at 8.7 p.m.—Australian Press AssociationUnited Service.