SEVERE BLOW

Gisborne Herald, Volume LXVI, Issue 20056, 30 September 1939, Page 7

SEVERE BLOW

MANY BRITISH HOMES WAR BUDGET TAXATION DEBATE IN COMMONS CHANCELLOR CONCLUDES (Elec. Tel. Copyright—United Press Assn.) (British Official Wireless.} Reed. 3.15 p.m. RUGBY, Sept. 29. The Chancellor of the Exchequer, Sir John Simon, replying in the Budget debate in the House of Commons, said he was grateful for the way in which the House had received the oroposals. In expanding the statement he made yesterday on the urgent need for economy and avoidance of waste, Sir John Simon said that in a number of coses in recent months the finance branches of departments had been strengthened to enable them to maintain control over their greatly increased expenditure. He proposed to institute special inquiries into- these departments where there was a case Cor investigation and he hoped to call on experienced business men ro act with officials of the Treasury and representatives of the departments concerned.

He pointed out that an. investiga tion of this sort already had been in stituted as regards the Ministry of Information and steps were being taken to secure a review of the war establishments of local authorities.

Sir John said that the raising of the bank rate enabled the Government to devise means to control 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 in a great many homes which may seem comfortable and well appointed,” he said. “No doubt the richer classes may have to revise the scale of their lives materially.” The debate concluded.

The National Union of Manufacturers has appealed to Sir John Simon to modify the Budget proposals until normal trade had time to adapt itself to the war conditions.