WAR BUDGET

Evening Star, Issue 23384, 29 September 1939, Page 7

WAR BUDGET

VAST SUMS FROM TAXATION DIRECT INCREASES INEVITABLE (British Official Wireless.) RUGBY, September 28. (Received September 29, at 10 ann.) Broadly stated, the effect or the waxbudget is that in the current year an additional £665,000,000 will be raised by direct taxation, and £305,000,000 by indirect taxation. Next year the direct taxpayer will pay £160,000,000 more than under the last Budget, and indirect taxation will yield an additional £665,000,000. It is generally recognised that this Budget represents only the first step in Sir John Simon’s proposals. Among the critics there is agreement that the increase in direct taxation described by Sir John Simon himself was inevitable. PRESS COMMENT. The ‘ Manchester Guardian ’ says the Chancellor has been modest in the increase of indirect taxes which presses relatively lightly on working-class families. No one, it says, can complain that it is a capitalist Budget or that it. “ grinds the faces of the workers.” The prospect revealed by the Budget of revenue of about £995,000,000 to meet an expenditure of about £2,000,000,000, involving the borrowing of over £1,000,000,000, does not appeal to the nation, says ‘The Times,’ which adds: “At least it can leave no doubt in any foreigner’s mind about this country’s determination to buckle on its financial armour, however uncomfortable it may be.”

The ‘ Daily Telegraph ' remarks that it is evident that the whole scale of the nation’s economy, private as well as public, will have to be_ rearranged, and the sooner the necessity is faced and wrestled with the less will there be dislocation _of the national war effort. Although the ‘ Daily Herald ’ complains that Sir John Simon’s choice of individual taxes is weighted against the small and middle incomes, this view is not shared by the other newspapers, where the proposals are studied in some quarters with special regard to the preservation of sources of revenue and the level of the State’s credit.

The grim severity of this first war Budget, however, has generally met with a good reception by the public.

Though it serves notice that hard living is ahead, says the ‘ News Chronicle,’ the knowledge that Britain is tackling its financial problems in such a way will maintain our credit abroad and confirm the general confidence that Britain will shoulder its burdens till victory is achieved. THE DEBATE RUGBY, September 28. (Received September 29, at 11.30 a.m.) In the House of Commons debate on the Budget resolution, Mr F. W. Pothick-Lawrence said the Chancellor was right in deciding to start immediately with heavy new taxation. He had- imposed unprecedented burdens, but “ unpalatable as they may be, 1 am forced to the conclusion that Sir John Simon’s prospective taxation for 1940-41, of which he spoke yesterday, cannot be his last word. The new direct taxes are recognised as necessary, and indirect taxes must, and will be; borne with fortitude.” The lowering of the bank rate to 3 per cent, was also warmly welcomed by Mr Pethick-Lawrence, who, however, urged early restoration of the pre-war rate of 2 per cent. He showed concern that in approaching the problem of war borrowing the Chancellor should see that the Treasury took appropriate steps to keep down interest rates, and this point was taken up by the Liberal speaker, Mr Graham White, who_ also urged the importance of maintaining low interest rates.

Sir Wardlaw Milne (Con.) said he accepted the Budget with deep resignation. The whole country was anxious to help the Government in every way. Sir George Schuster (National Liberal) spoke of the Government’s responsibility to have a well-prepared policy for mobilising the resources of the nation in such a way as to keep them fully employed by absorbing any left idle as the result of the drastic curtailment of private activities, which the Budget proposals would effect. Several speakers dwelt on the importance of economy. SEVERE BLOW TO MANY HOMES LONDON, September 28. (Received September 29, at 2 p.m.) In the House of Commons Sir John Simon, winding up the general Budget debate, said the raising of the bank rate enabled the Government to devise means of control of inflationary tendencies. The policy was to borrow from the genuine savings of the people at the lowest rate obtainable. “ Direct taxation is going to inflict the most frightful blow on a great many homes which may seem to he comfortable and well appointed,” he said. “No doubt the richer classes may have to revise the scale of their lives materially.” The debate has concluded. HOUSE Of COMMONS MEETING AGAIN ON TUESDAY (British Official Wireless.) RUGBY, September 28. (Received September 29, at 10 a.in.) The House of Commons meets on Tuesday, when Mr Chamberlain will review the general war position. ■

MODIFICATION URGED MANUFACTURERS' APPEAL LONDON, September 28. (Received September 29, at 1 p.m.)’ The National Union of Manufacturer* has appealed to Sir John Simon to; modify his Budget proposals until normal trade has had time to adapt itself to- war conditions. AUSTRALIAN STATES BRISBANE, September 29. (Received September 29, at 1.15 p.m.V; No remissions or increases in taxation are contained in the Queensland Budget, which was presented! by the Treasurer, Mr Cooper. The revenue i* estimated at £20,310,735, and the expenditure £20,375,437. Slight increases in taxation are provided for in the Western Australian Budget presented by the Premier, Mr Willcock. The revenue is estimated a* £11,186,012. and the expenditure, at £11,217,300. The remission, on incom® tax will be reduced by 10 per cent# Probate duty will be slightly increased. NO PROFITEERING RIGOROUS AUSTRALIAN MEASURES CANBERRA, September 29. (Received September 29, at 2 p.m.)l Under the provisions of the National Security Regulations, wartime profiteers may be imprisoned for life. Other penalties range from a fine up to £lO9 or imprisonment up to six months. The imprisonment for life penalty applie* to indictible offences. , The alternative is a fine of any amount or imprisonment plus a fine.

The regulations are designed to prevent the sale of declared goods at excessive prices, to eliminate speculative dealings in commodities general!}’, to prevent cornering and inter-merchant selling, and to break combine^.