BRITISH BUDGET.

Wairarapa Age, 6 July 1936, Page 5

BRITISH BUDGET.

EXPECTATION OF DEFICIT. DEFENCE BURDEN. STEPS TO MAKE COUNTRY SAFE. RUGBY, July 3. The third reading of the Finance Bill for the current year was carried in the House of Commons without division, following a debate in which both the Chancellor of the Exchequer, Mr. Neville Chamberlain, and the Financial Secretary to the Treasury, Mr. W. S. Morrison, took part. Mr. Morrison, in introducing the third reading, said that the fact that they were able to meet the heavy charges for defence with such slight additional taxation showed an amount of financial strength in the country that was very impressive.

Mr. Chamberlain, replying to criticisms of the Government’s reticence regarding the defence plans, said that the Government had been perfectly straightforward in this matter. It had said that the programme was not one that could be completed in a single year. It jjiust depend upon what other countries did and what developments there might be regarding science and tactics, and 'it was bound to change as the years went by. Definite information had been given where the Government could be definite. “We are spending large sums of money to make this country safe and to fulfil our obligations,” he said. “It is a fortunate fact that this new liability comes upon us at a time when we are far better able to bear it than we were a few years ago.” If nothing happened, to shake confidence, he believed that there was no reason why the country should not be able to support this liability and at the same time support the rising standard of health. He could not agree with a suggestion that the rising expenditure on armaments would continue indefinitely.

Replying to criticisms that in the Finance Bill the Chancellor should have risked a deficit rather than increase taxation, he replied that it was practically certain that there would be a deficit. The only question was what would be its size. Supplementary estimates would have to be introduced during the year. —(British Official Wireless). HOUSE SURPRISED. INCREASE IN REARMAMENT EXPENDITURE. (Received Sunday, 6.30 p.m.) LONDON, July 4. The “Daily Telegraph’s” political correspondent says Mr. Chamberlain's Budget deficit announcement completely surprised the House. It is believed that rearmament expenditure for the current year will be at least £5,000,000 sterling more than was contemplated when the Budget was framed.