THE BRITISH PARLIAMENT.

Hokitika Guardian, 3 May 1922, Page 1

THE BRITISH PARLIAMENT.

BRITISH BUDGET. AUSTRALIAN AND N.Z. CAULK ASSOCIATION

LONDON, May 1

Sir Robert Horne (Chancellor of the 'Exchequer) presented the Budget iti a Crowded House.

Me'pointed out that during the first quarter of the past year, the greatest industrial trouble that Britain had ever known swept over the country. It caused inevitable unemployment, and a loss of revenue. That they had met these distresses without worse calamities, he claimed, testified eloquently to the country's soundness and the solidity of its financial position. The year’s revenue totalled £1,124,880,000, which was £91.000,000 below the estimate. The expenditure was £1,079,189,000. leaving ’£45,693,000 for debt redemption. • ‘lie declared it was remarkable that, in such a year, the income and supertax should together have yielded £399,000,000. The excess profits duty had yielded £122,000,000, but the repayments on this had absorbed back £92,000,000 of the amount, leaving £30,‘OOO,OOO. There was an improved value of the pound. This was the first proof of their paymehts of external debt. During the year the internal debt had been reduced Trent £1,275,000,000 to £1,029,’OOO,OOO. The Chancellor said he estimated the coming year’s expenditure at £910,000,000, consisting of the following amounts --£363,438,000 for the Consolidated Fund charges, and £526,631,000 for special services. On 'the existing basis of taxation, he 'estimated the revenue would he £946,600,000 leaving a surplus of £46,500,000 excluding any provision for redemption of debt.

He always treated the possibility of receipts from Germany as windfalls. In regard to the corporation profits tax, where the exemption period expired on December 31, be proposed to extend the exemption from taxation for three years.

It was proposed to reduce the basis for tax assessment on agricultural land,' from double the annual value to the annual value; while, on land-not being used lor •agricultural purposes, it was proposed to revert to the pre-war assessment basis, namely one-third of tho annual value. These changes would reduce the income tax yield by £2,159000. The payment of the arrears of excess profits duty would be allowed to be spread over five years.

The postal rates would be reduced to 1) on letters Id on postcards and id on printed papers, operating as from May 31st. Telephone charges would also he reduced. These, together, would reduce the surplus to £38,300,000.

Sir Robert Horne admitted that unemployment was breaking the hearts aiul embittering lives of hundreds df thousands of the people. “Unparalleled depression is 'still with us,” he said, “but there are helpful signs of a revival.” The magnitude of the British taxpayers’ burdens had won admiration throughout the world but lie thought that in the present eircumstanees they were justified' in giving some stimulus to trade in the shape of not continuing the policy of debt redemption. Apart from the interest falling duo to America, which it was proposed to meet, therefore, it was proposed to devote the rest of the estimated surplus to the reduction of taxation. The income tax would be reduced by Is per pound; and tho tea duty by -Id per pound from May loth. There would be tax remissions also on coffee, cocoa and chicory. These reductions left tho following figures: Revenue, £910,775,000; expenditure, £910.069,000; surplus, £700,000.

THK BUDGET DISCUSSED. LONDON, May 1. Jn the House of Commons, Mr Asquith, discussing the Budget, declared that the surplus of £38,000,000 ought really have been earmarked for the reduction of debt. Only an excess of revenue over expenditure justified a remission of taxation, but not a surplus which wa s artificially produced. Sir R. Home was indulging in a great gamble. Mr Asquith said lie would be surprised if the estimate for the Supplementary Estimates was not doubled during the year. Mr Clynes said bo welcomed . a reduction in the tea, duty. He declared the way to encourage trade was to reduce taxation on the firms and corporations, and to increase the taxation on individuals. He disapproved of such substantial concessions to the agricultural interests. Ho (advocated a. graduated levy on accumulated wealth. Sir F. Banbury described tho suspension of the sinking fund as the beginning of a. had policy. Tie urged further economies. Mr Hilton Young, in replying, said tho reduction of Is in the £1 on the basic rate of income tax did not mean that a 111 income tax would he reduced by that amount. An explanation of how tho reduction would operate would he issued later. The customary resolutions were passed, and tho debate adjourned. The Budget was variously received in the lobbies and outside Parliament, hut, on the whole, created a favourable impression. There is a certain amount of criticism, however, about tho suspension of tho debt sinking fund, on the ground that conditions are not ready for it. There is, however, a strong counter opinion in the financial circles that Britain hitherto has made undue sacrifices for tho reduction of her debts, and that it would he unfair, and fatal to British trade, to continue tho repayments at such a speed. The retention of the heavy war-time 1 tax on beer has been criticised, on the

ground ‘that a. reduction...would lead ’to' greater consumption, and . therefore* increase tho a'ggrbgdto jtield .tif the tax. It is contended, bn the contrary, that any additional consumption is hofc pivot of a sharp controversy. . A more important claim is that thoi income 'tax ought to be extended to ednperative societies. Thefr turnover was £420,000,000 during 11921. The possibilities of extracting revenue from‘the pari-mutuel system have also been commented on. The Australian and New Zealand methods of 1 exploiting racing for the purposes of revenue have been mentioned approvingly. The pari-mutuel system is gaining popularity in England. It is pointed out that it could. produce progressive relief to the general taxation. • Tho reductions of income tax, and taxes on land, postage, and tea, and concessions to agriculturalists are generally approved, while satisfaction £ universal that Sir R. Horne lias dc-! ferred bis scheme for funding pensions, obligations, though it is the opinion in Ministerial circles that this will possibly bo necessary in 1023.