BRITAIN’S BUDGET

Gisborne Herald, Volume LXVI, Issue 20055, 29 September 1939, Page 7

BRITAIN’S BUDGET

FAVOURABLE RECEPTION BURDENS WELL SPREAD MAINTENANCE OF CREDIT REARRANGED ECONOMY (Eloc. Tel. Copyright—United Press Assn.) (British Official Wireless.) Reed. 12 noon RUGBY, Sept. 28. Commenting on the war Budget, the Manchester Guardian says that the Chancellor of the Exchequer has been modest in his increase in indirect taxes and presses relatively lightly on the working class families. No one can complain that it is a capitalist Budget, or that it grinds the faces of the workers.

The prospect revealed by the Budget of a 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 appal 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 wholq, scale of die 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 the dislocation be, apparent of the naiional war effort. Preserving Revenue Sources Although the. Daily Herald complains that Sir John Simon’s choice of individual taxes are weighted against the small and middle incomes, this view is not shared by 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 a good reception by the public. Though it serves notice that hard living is ahead, says the NewsChronicle, the knowledge that Britain is tackling her financial problems in such a way will maintain our credit abroad and confirm the general confidence that Britain will shoulder her burdens till victory is achieved.

The debate on the Budget resolutions was continued by Mr. F. W. Pethick-Lawrence, who said that .he Chancellor was right in deciding to start immediately with heavy new taxation. He had imposed unprecedented burdens, but‘‘unpalatable as they may be, I 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. New direct taxes are recognised as necessary and the indirect taxes must, and will, be borne with fortitude.”

Lowering of Bank Rate

The lowering of the bank rate to 3 per cent was also warmly welcomed by Mr. Pethick-Lawrence, who, however, urged the 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 a Liberal speaker, Mr. Graham White, who also urged the importance of maintaining low interest rates.

Sir Wardlaw Milne accepted the Budget with deep resignation, saying that the whole country was anxious to help the Government in every way. Sir George Schuster, a 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 a result of the drastic curtailment of private activities which the Budget proposals would effect.

Several speakers-dwelt on the importance of economy.