BRITAIN’S BUDGET

Waimate Daily Advertiser, Volume XXIV, 12 April 1927, Page 5

BRITAIN’S BUDGET

ANNOUNCEMENT BY THE CHANCELLOR.

FINANCIAL STRENGTH UNIM PAIRED.

(Per Press Association—Copyright

LONDON, April 11

In a crowded and tense House,. Mr Churchill rose at 3.55 to announce the Budget. At the outset he reminded the House that his calculations last year were based on industrial peace.. Customs and excise receipts had dropped nine and a quarter millions sterling, income tax £18,000,000, Post Office half a million, stamp duties, £1,250,000. The total loss due to the general and coal strike was. £32,000,000, made up as follows:— Decreased revenue £17,500,000, increased expenditure £14,500,000, resulting in a loss in income and super taxes, spread over this and future years amounting to £30,000,000. It had been necessary to raise more Treasury bills, and the expected fall in money rates had not eventuated, thereby costing £6,000,000 extra in interest on more and more expensive Treasury bills. The marvel was that they had not suffered more irrecoverable losses from the shocking breakdown. Revenue had in the main survived. Exchange had stood like a rock, and in the face of it all the gold standard had survived. Beer and spirits alone reflected to the Exchequer the social and industrial struggle, but trade flowed on. England had not advanced as rapidly as some nations, but still she was advancing. Her economic vitality and financial strength, though strain ed, Were unimpaired.

Referring to the demands for a forty million cut in expenditure, the Chancellor said that this would cause confusion, into which no Government could plunge. Allowing for a decline in money values, the expenditure on national administrative services was actually ten per cent, below 1914. Despite the increase in population and higher standards of living to cut the fighting services by 10 to 15 per cent, would can's e a panic.