FEW HAND-OUTS HERE AND THERE

Chronicle (Levin), 17 August 1949, Page 7

FEW HAND-OUTS HERE AND THERE

WELLINGTON, August 16. All taxpayers, war pensioners and social security beheflciaries can look for some good news in the Labour Government's fourteenth Budget to be presented to Parliament by the Minister of Finance, Mr. Nash, at 7.30 p.m. on Thursday. Mr. Nash is not expected to drop any bombshells iilce last year's return to -parity with sterling but the Budget is likely to be c'ouched in terms to curry favour with the swinging vote. ■ / |

While anytliing can happen by the time Gabiyiet ancl finally the Labour caucus pulis the proposed Budget to pieces, the following are expected to be the niain provisions: — A wholesale overhaul of social security benefits. Here the most interestmg provision is likely to be an easing oi the present restriction that age beneficiaries cannot have more than £500 in cash and own their own home. This major change in policy is not expectea to be accompanied by any relaxation in the present restriction on earning not more than £1 a week. Higher monetary payments to tjie aged, invalids and widows, was aiready promised in the Speech from the Throne at the opening of this session of Parliament. Un the question of how great will be the increases, it is evident that single age beneficiaries will receive greater inereases than married beneficiaries, it being assumed that the Government will give the same increase to pensioners as was granted in the June standard wage pronouncement by the Arbitration Gourt. This would mean an increase from £2 5s to £2 10s weeitly for each married beneiiciary. Single beneliciaries are expected to be mcreased to at least-£2 15s or perhaps even £3 weekly Similar proportionate increases . will be granted invalids ana widows. Tlfe finance committee of the recent Labour Party. conferenee of which Mr. Nash himself was chairman, reeommended that tliere should be an increase in the allowable income from other benefits but this is expected to be superseded by a provision enabling a pensioner to have more than £500 in tiie bank and own his own home. There seems no chance of a reduction in the current social security charge of ls 6d in the pound. Mr. Nash's conferenee committee recommended that before there be any reduction in this charge, all benefits should be made universal. Two other items which may appear in the budgetary overhaul of social security benefits, are funeral benefits and the establishmeut of amusement centres for pensioners. What J*axation Relief? Possible income tiax relief will -be the other main consideration in the Budget. After last year's flat remission of £10 on all individual assessments, Mr. Nasn seems eommitted at least to give a similar concession this year. He iias two courses open. He can increase the personal exemption now standing at £200, to £300 or £350 or he can give a similar remission as last year but this time amounting either to £15 oiJ'£20. ' A remission of £15 on all assessments would be the same as raising the personal exemption to £300. , Political observers agree that this is the most likely step to be taken by

Mr. Nash. Only tlie most optimistic think he will also remove the wartxme surcharge of 15 per ceiit but 99 out oi 100 around Parliament Buildings can-; not see this happening. ' ' Increased war pensions which have1 aiready fieen promised,. also will be included in the Budget. It is generaiiy thought they will average lUs more than the existing rates. Wishful Thinking. There are the usual ruiuours about the Budget circulation in~ the lobbies. The principal ones are that the family benefit will be increased, that it will be raised for the third or fourth cfiild, that the saies tax will be re'duced and • that proprietary company taxation .mil' be overhauled. The general opinion is' tliat all these are just rumours. , Mr. Nash's Budget this year will be even longer.than usua,l. He will. devote • many pages to a review' of the recent; financial talks between the Britisn' Gommonwealth Finance ■Miniatefs" mLondon arising from the dollar fainine. But so far as is known, it will only he^ words. Actual Government pr'obo'sais; are likely to be contained in a separatt report to be made to the House by Mr.. Nash in about ten days' time; Gabinet will cdnsider the Budget to-' morrow and 'it will corae to a'caucus oi-! the Parliamentary Labour Party on; Thursday morning. • • •