DEBATE ON BUDGET IN HOUSE OF COMMONS

Star (Christchurch), Issue 19060, 3 May 1930, Page 1

DEBATE ON BUDGET IN HOUSE OF COMMONS

MR PHILIP SNOWDEN REPLIES TO CRITICISM. (United Press Assn.—By Electric Telegraph.—Copyright.) LONDON, May 1. In the House of Commons during the Budget debate Sir G. Rentoul (C.) moved an amendment to reject the proposed increase in the standard rate of income tax. Mr I. J. Albery (C.), seconding the motion, said that increased taxation was driving capital abroad. Mr R. J. G. Boothby (C.) said that the gilt-edged market had practically collapsed since the Budget. The Chancellor of the Exchequer, Mr Philip Snowden, said he had received many expressions of approval of the Budget, even from super-tax payers. The previous Government was responsible for most of the items of increased expenditure. The Tories’ policy was what was called a broadening basis of taxation, in other words, relieving the rich and over-burdening the poor. The revenue from Customs and excise duties amounted to £250,000,000 yearly, fourfifths of which came from those who were not income taxpayers. Though America and Germany were reducing taxation they had 6,000,000 and 3,000,000 unemployed respectively. The whiskered argument about capital being driven abroad was fallacious, neither had the high income super-tax had this effect. Despite the Budget’s alleged disastrous effect on national credit the Bank rate to-day was further reduced, which, every financier would admit, was partly due to his method of dealing with debt. Mr Winston Churchill (C.) said that Mr Snowden had revealed a spirit of class warfare aiming not at an immediate but a steady transference of wealth till the capitalists were entirely eliminated. There was no wonder that trade recovery was slower and more painful in Britain than in any other country since the war. More than half the increased income tax was due to increased doles to the unemployed who were not even asked to say whether they were genuinely seeking work. The amendment was rejected by 255 votes to 139. i®® is® I!®®® is® nos mss® sums?