THE BRITISH BUDGET

Waikato Times, Volume 113, Issue 18929, 26 April 1933, Page 8

THE BRITISH BUDGET

CHANCELLOR’S SPEECH. —» ; REVIEW OF YEAR. SATISFACTORY GAINS MADE. SOLID FINANCIAL POSITION. QUESTION CJF WAR DEBT 3. (Official Wireless.) (Received April 26, 12.55 p.m.) RUGBY, April 25. In the crowded House of Commons, the Chancellor of the Exchequer, Mr Neville Chamberlain presented the an-, nual budget statement. The Chancellor said the expenditure last year was £777,000,000 and Lbe revenue was £745,000,000. The deficit of £32,000,000, would be met by borrowing. Blit for the war debt payment of £29,000,000 to the United States, for which no provision had been made In the budget, the deficit would have been £3,300,000. That the result was achieved in the teeth of so many difficulties should give more solid satisfaction than the contemplation of surpluses earned in more prosperous times. Mr Chamberlain compared the present prices of Government securities with those of a year ago, and maintained that the immense financial benefits would not have been secured if the Government had not insisted on a balanced Budget. “ Despite the shrinkage in international trade generally, British .trade continues at a high level and the employment and purchasing and savifig power of the people in Britain has been maintained tV a very remarkable degree. Post Office deposits rose by over £16,000,000 and trustee and savings bank business by £1,750,000." Referring to the abnormally low rate of discount at which Treasury Bills could now be sold the Chancellor said he thought it advisable to take advantage of the present cheapness of money and convert a proportion of those bills into long-term security in the shape of the new 2J per cent, conversion loan which was now being offered. This consolidation of the position would repay any extra interest .charge that might.be involved. "We have had a very considerable and misleading increase in the amount of nominal, or dead-weight debt,” said "Mr Chamberlain, “but at the same time we have laid the foundations for a very substantial decrease in our annual charge for the service of debt ” This was a permanent gain due to the war loan conversion and other operations. ' . Regarding war debts, the Chancellor said that in the. year 1933-4 they were liable to pay the United States £57,000,000. As against this they would have received from reparations and war debts £64,500,000, but none of these figures representing assets or liabilities could be said to be fixed. Therefore ho proposed this year to adopt the same principle as last year and make no provision for payments or receipts to and from those countlI The Chancellor mentioned that the duty on beer had decreased by £6 000,000 last year. Declines in revenue had followed increases in duly. He estimated the. cost of nis reduction of a penny per pint in the retail price at £14,000.000. The reversion to 'the half-yearly system of income tax would benefit 2 750.000 taxpayers, and its cost, would be mainly borne by a del>reelation fund amounting to £7,000,000. attached to the 5 per cent, war loan, which under the prospectus of a o± per cent, conversion loan was no longer required. This non-recurung item would thus be used to meet a non-recurring loan of revenue. The Chancellor, in concluding his speech referred to the Washington conversations and declared that the most hopeful prospect of any considerable advance to prosperity lay in collaboration with other nations. Following Mr Chamberlain, the Leader of the Opposition, Mr George Lansbury claimed that a budget was a candid confession of the futility of th° Government’s efforts to restore trade and industry. The budget was only balanced out of the life-blood of the unemployed. “We reach a low level in our national history when it is thought a penny off beer will save us,” he declared. Sir Herbert Samuel said he never heard a budget excelling to-day’s m lucidity and conciseness. The debate was adjourned.

“A GRIM BUDGET.” ' EDITORIAL COMMENT. REVENUES SINK OMINIOUSLY. ORTHODOX FINANCE IMPOSSIBLE. (Official Wireless.) (Received April 26, 1.30 p.m.) RUGBY, April 25. The Times in a leader describes the budget as grim, lacking the imagination of a financial genius. It emphasises in addition that the beer and income surtax revenues are sinking ominously, and unless drastic steps are taken to reduce the expenditure which the legacy of past profligacies, orthodox finance will soon become impossible.

RECEPTION IN COMMONS. GREETED WITH CHEERS. INCOME TAX POSITION. SOME DISAPPOINTMENT FELT. (Received April 20, 1.10 p.m.) LONDON, April 25. The House of Commons cheered the delivery of the Budget, which, if not spectacular was certainly a definite testimony of ttie nation’s grimly successful struggle to maintain its preeminence in financial stability. The lobbies accepted the Budget as more or less inevitable, though some of the younger members were disappointed at the refusal to leave the Budget unbalanced and reduce income lax. (Continued in next column,j, >

The most impressive part of Mr Chamberlain*s speech was when lie reluctanlly demolished as impracticable the idea of budgeting for three years and instantly cutting a shilling off the income lax for the psychological effect on the •country’s spirit, even a I the risk of not balancing the Budget and gambling on the trade recovery which was now at Ihe stage of materialising. “ But what if the 'psychological response is not what is expected and confidence faltered or even withered before !he balance of the Budget was restored?” lie asked.