REACTIONS TO BUDGET

Wanganui Chronicle, Volume 90, Issue 84, 11 April 1946, Page 5

REACTIONS TO BUDGET

A FAVOURABLE PRESS “DAILY MAIL” AN EXCEPTION ABOLITION OF EXCESS PROFITS TAX ACCLAIMED. Jlecd. 7.20 p.m. London, April 10 Dr. Dalton’s Budget met with the ge !?ni a l a PP r oval of the British Press. 1 he Times” describes it as cautious and added that no fault can be found with the Chancellor’s decision to refuse larger concessions at this stage. • Dr. Dalton has offered the public a brighter future prospect and greater malerial welfare, but the Budget has conveyed a warning that greatly in»creased production is its indispensable condition,” said “The Times.”

‘The Daily Telegraph” says Dr. Dalton gave the city most of what it desired, abolition of the excess profits tax. Other big concessions were certain to make for strong markets. The “Daily Mail,” in a trenchant attack, described the Budget as lacking courage and vision, niggardly in com ception and partisan in its aims. “It is a “no incentive” Budgeto, said the “Mail.” The newspaper prophesied that the first Budget since the war era would be received with bitter disappointment, and said retention of the purchase tax as a permanent impost, constituted a departure in the fiscal system comparable with the Introduction of income tax during the Napoleonic wars. OPPOSITION VIEWS.

The gravity of the burden which the British taxpayers must continue to bear should not be overlooked merely because it was not as bad as some prophets thought it would be, said Mr. Anthony Eden, opening the debate for the Opposition. He added that the people of this country during the war bore a staggering tax burden which was without parallel in any other country. The present burden could not be carried indefinitely. Dr. Dalton, despite the end of the war, had budgeted for a figure four times as great as the expenditure in 1939, which the present Prime Minister then described as colossal. Mr. Eden warned that there should not be undue optimism as a result of the Chancellor’s remarks regarding narrowing the gap between expenditure and national income. He pointed out that to maintain full employment Mr. Dalton should budget for a surplus in good economic years such as this, and spend beyond revenue in years of depression. Mr. Eden said he was staggered at the figure of £80,000,000 for civil charges in Germany. He regretted the Chancellor’s gloomy announcement that the purchase tax was to stay. He added that he had hoped it was a war measure and would go with the end of the war. Mr. Eden, in conclusion, asked for a clearer definition of the Government’s attitude to industry, which was becoming more and more confused as a result, of conflicting Ministerial pronouncements.