BRITAIN'S WAR FINANCES

Dominion, Volume 9, Issue 2739, 6 April 1916, Page 5

BRITAIN'S WAR FINANCES

BUDGET IN PARLIAMENT NEW WAR TAXATION ANNOUNCED \ ■ By Telegraph—Proas Association-Copyright (Re'c. April 5, 9 p.m.) t i n ? 0U66 °f p>™?o n s, the B £ d get was brought downbv of the the Right Hon. Reginald M'Kenna. He said the shortage of tonnage had had. a considerable effeot upon the revenue, as also had the prohibitionof certain imports. He assumed that the war would last through the *Q1 nnn nnn * nom , I | y ea ': lh ®. aGt " al expenditure last year w As £559,000,000, or £31,000,000 less than the estimate. The actual net issues to Britain's Allies amounted to £264,000 000 and to the Dominions £52,000,000; in the latter case the amount was £16,000,000 less than estimated. This result was due to the public spirit of the oversea Governments, for which they owed them thanks ' (Applause.) " Making allowances for certain facts, the total financial assistance given to Britain's Allies was £313,000,000. In pursuance of the scheme to purchase American securities, the Government had bought a considerable amoufit ™ nd3 > a, 'd by a resale had built up a large reserve to meet future needs. The purchase money was included last year's expendidure. The proceeds would constitute an asset m America with which to begin the current year ™ 7^n™f a V eve T fo x- was £336,767,000, an increase 'of £dVd3,OOO above the estimate. The expenditure was £1,559,000,000. The b y war loan in June, £104,000,000 by the sale of Exchequer bonds; £50,000,000 by the Anglo-French American loan, and the balance by the sale of.Treasury bills. The King's Cift Of £100,000; , „ ■ J® anked H n H his ly e ift to tho war,; and on Mr. Asquith s .return would decide how it would be spent. The Chancellor said he estimated tho revenuo 'for -the year at 509 millions of which permanent taxation would give about 423 millions, leaving a deficit of . if millions. In addition they would also have to meet the new charge for interest and sinking fund, which is calculated to be 79 millions. Regarding the new taxes, the object would be to get revenue to meet our obligations to pay as large a proportion of the war cost as possible, and distribute fairly £009 Mo e 0 n OO taxatlon ' : lllereforo 11 Proposed jto impose taxes to bring in t war indebtedness," said:the Chancellor, "is 2140 millions of which 368 millions were advanced to our Allies and the Dominions. Relief will come to us in the future in regard to .these items, but we are responsible now; We have had to bear the whole dead weight. The additions made to our taxation have fully assured national creditors; their capital and interest are secure. It will he inevitable to increase our expenditure durin°- the'eomine .year War services have accounted for 1120 millions. There wilf bo an additional thirty mil ions for miscellaneous expenditure, bringing up the war expenditure to over three mil ions daily. Advances to the Allies and the Dominions may be placed at 450 millions; consolidated services, including interest debit at 137 millions, With other services this brings up the total to 1825 millions -almost exactly five millions daily." He would be disappointed if serious economies were not effected during the year, and the largo total, reduced. The Now Taxes. . Tho maximum income tax has been fixed at ss. For inoomes from £500 to £1000 the tax is and for incomes below £500, 2s. 3d There would be a small increase in the income tax on small incomes ' rising to a maximum of five shillings. Earned incomes up to £500 will pay two shilling and threepence, £500 to £1000 half-a-crown, and successive stages to five shillings. The new scale of unearned incomes commences at three shillings on incomes not exceeding £300, and rising in sixpenny stages to five shillings on m! lg £2m / «'sft'mted.that the increases will produce £43,500,000. Tho super tax would not be changed. Dealing with the double income ta x , the Chancellor said they would have to be dealt with m the promised reconstruction of the income tax laws. For tho present, where the Dominions tax is not less than eighteenpence, he wou'd not impose any fj-esh burden. , A voice: What does that mean?' Mr. M'Kenna: It means that whatever they suffer, they will continue to suffer, but they will not suffer more. The additional tax would not apply to tho naval and military forces. The new Customs and Excise taxes are estimated to bring in £21,800,000. There would be a tax on amusement tickets, including those for footbali and horse-racing, rising from a halfpenny to a shilling, according to tho cost of tho seat, up to twelve shillings and sixpence, with an additional shilling for seats above that amount. This tax is estimated to realise ■ £5,000,000.° He would also impose a tax on railway tickets, yielding £3,000,000. There will be an additional halfpenny a ptmnd duty on sugar, yielding seven millions. The dutv on cocoa, coffee, an ( ] chicory will be ..increased to sixpence per pound, producing two on matches to 3s. 6d. Customs and 3s. 4sd. Excise on every 10,000 matches; mineral 1 waters, fourpence per gallon, yielding two millions. ■ . Double Duty on Motor-Cars. It is proposed to double the present duty oh motor-cars up to 18 horsepowor, and troble it on hwher-powered cars., On motor-cycles not exceeding 4 horse-power,\tlie duty will be two guineas; on higher-powered cycles, threenuarters of the duty oil motor-cars. The motor duties will realise £800,000. The excess profit tax will he increased to 60 per cent. Summing up, Mr. M'Kenna calculated that by March, 1917, he would renuire to meet in an ordinary year 338 millions. Our permanent revenue was 423 millions, leaving a surplus, after another year of war, of eiglityrfive mil, lions. When peace came they would _h ave a margin for rentission of taxation. Civic courage was as important n« military courage. "We ought to justly claim that we have not heen found wanting in these, great virtues." Mr. M'Konntt added that the_ manner wherewith British credit had- withstood the immense claims upon it was trulv wonderful to those unfamiliar with our financial methods and resources "We have not borrowed a" pound without providing new taxation to cover the interest, and provide a liberal sinking fund." Mr. William O'Brien (Independent protested against Ireland's inclusion in the and declared that that country could not bear tho burden of "indefensible taxation." Mr. G. N. Barnes (Labour) thought, Hint the new duties would press severely unon the poorer classes, especi nl| v those on the railway ticlcets. The House passpd a resolution authorising the collection of the duties on all Mr. M'Kenna's proposals. . . THE EXCESS PROFITS TAX ESTIMATE, £6,000,000; YIELD, £140,000. London! April 4. ' A White Paper reveal 9 the fact that the excess profits tax yielded £140.000. against an estimated yield of R j x millions. The total taxation for 1915-16 yielded £290.880,000, which is £24,414,000 over tho estimate. During the year £160,425.000 was repaid to the. Bank of England, and exchequer, bonds of the value 0 f £16.3n5.000 were adeemed, 000 cim,<a,t yew sU ° w that' Civil Service reductions will total

AN EXPLANATION. ' (Rec. April 5, 9 p.m.) \ ; London, April 4. In the House of Commons Mr. M'Kenna (Chancellor of iilio Exchequer) explained that the reason why the .yield on the excess profits tax was so small was due to the delay in the passing of the Finance Bill. TAX TO BE EXTENDED TO SALES. : : ; ' ; (Reo. April 5, 11.30 p.m.) , London, 'April '5. '' ihere is general approval at Mr. M'Kenna's announcement that the exccss profits tax viU be extended to sales of profit-producing assets, thus securms to the Exchequer a share in the profit on the sales of steamships. Some which cost £30)000 are now selling at £200,000. PRESS OPINIONS ON THE BUDGET (Rec. April 6, 0.5 a.m.) The newspapers, in th&r comment 0 n the Budget, dweU sfemficanca ln a f ng f rt' ee h , umlre + d r I] ? ns y T T k b .v ex tra taxation. Their ScritT Vt ? f ral f 6 imposts. is pointed out that short jou'Ss «... ? P :47.:V« Sfssft. Mm'ter'iS {EftSS - -* <"• The cinemas ere an important part of the amusement tax. At least ten millions visitthe picturei palaces weekly, fIJHj t j lera are matinees fof cWHr e n ~ ?, vorkmg-chss districts are taxed 50 per cent. >It is expected that ISSU6 a BtamP ' Whioh th ° public wi]l -th» .. PROTECTIVE TARIFF URGED. ..." (Reo. April 5, 11.30 p.m.) Hie tariff reform netrepapera reßrefc that tha Goveranieiit' • m " xkn * m ™ tt m ™" *• b °*