BRITISH BUDGET

Hokitika Guardian, 28 April 1926, Page 1

BRITISH BUDGET

FURTHER PARTICULARS. [Australia & N.Z. Cable Association.] LONDON, April 2G. In the course of his Budget speech, Mr Churchill dwelt on what he termed the happy effects of the restoration of the gold standard, including the normalisation of exchanges with their great gold-using Dominions, thus placing Britain’s return to prosperity on a solid basis. The silk duties had worked with unexpected smoothness. The present silk prices were somewhat below last year's. AYe had secured a revenue of between six and seven millions for the full year, without making dearer Hie finery of the poor working girls. The McKenna duties had decreased the imports, while they had increased the British exports of motor cars and musical instruments.

Air Churchill said a heavy loss occurred last year on account of dumping taking place in the interval between the announcement of Hto silk tax and the passage of the Budget. Henceforth. the new duties would he applied with less delay.

Last year’s extensive tariff preferences, he said, had produced satisfactory results. The influx of Empireproduced sugar, which fell to' 165,000 tons under Afr Snowden’s Budget, Itad risen practically to the 1923 level, ft promised to increase further in the present year. Heavier Empire wines, for the first time, had found an appreciable market, and British Empire tobacco supplies were increasing steadily in quantity, and improving in quality. Jit Empire raisins the trade lmd also increased, hut Hie tariff preferences would only produce an effective permanent reflection in intcr-Tmpcrial trade by their stability and continuity. Therefore, the Government proposed to extend the principle, and for leu years to guarantee all those numerous articles which formed the subject of the Imperial preference loan.

Mr Churchill enumerated minor tax re,adjustments. For example, there was an abandonment of the three year average for the assessment of income tax. There was an agreement with the Irish Free Slate for abolishing double income tax.

Before coming to more substantial proposed new taxes, like that on belling, lie analysed anomalies in the present betting laws, under which cash betting was legal on the racecourse, but illegal elsewhere. He, emphasised that there was one. betting law for the rich and another for the poor. He did not propose to alter the law, because he was not looking for trouble, hut revenue. He proposed to tax by five per cent every stake on the racecourse or through the credit bookmaker, from Is lid upwards. He suggested that the bookmaker could recover the tax from his clients by certain shortening of odds. He estimated that the betting tax would produce one and a-lialf millions this year and six millions in a full tear.

He announced an import duty of sixteen and two-thirds per cent on wrapping paper, lie had decided to extend the McKenna import duties to cover commercial motor cars. There was largely in order to simply the customs forma lilies, since only ouc-tentli of the commercial cars of Britain were imported, while the exports of them exceeded the foreign imports. lie proposed to re-enact for a period of ton years Part One of the Safeguarding of Industries Art, which would otherwise loose this year. MOTOR FEES UP. Relating to essential factors for national defence,, which, he said, nobody had ever seriously disputed since the war. the Chancellor extolled the superiority and quantity of British roads compared with those in any equal area in the world. He announced tin increase in the taxation of heavy motor lorries, ruhberless tyred charabancs and hackney vehicles, these producing £2.350,000 in a full year. Afr Churchill pointed out that the fund for tin* upkeep of roads, to which the motor taxes hitherto had been allocated, at present had it reserve of nineteen millions. The Treasury proposed to appropriate seven millions thereof, and henceforth take one third of all motor taxation which would he devoled to the revenue. Then came what In' characterised as

'• a peculiarly refreshing windfall,” namely, a reduction of the throe months’ credit hitherto granted to the brewer for the payment- of duty, to two months. This would produce, once and for all. a payment of five and a-hnlf millions. .Mr Churchill said he had received an assurance from Af. Perot (the French Finance Afinister) that without prejudice to the impending settlement of the French debt to Briain, France bad undertaken to make a payment of four millions sterling during the coming vonr on the sole credit of Franco.

" This practical step.” be said, “shows M. Perot’s desire to arrive at a settlement. and is a good augury for tlio coming discussion. The House should welcome it as a proof of the Lion and financial power of France to strengthen her credit by a proper regulation of her external debt.”

Summing up, the Chancellor showed the new taxes would produce approximately twenty-two millions which, after the deduction of the prospective delimit of C7.iXIO.tXX) on the present basis, left a. surplus of L'l 1.150,000. He asked: "Wlmt shall we do with it'” Mr Churchill added that he had resisted a sore temptation to grant remissions in taxation. He pointed out that the statutory sinking fund of fifty millions had been reduced to thirty-six millions last year: owing to the deficit of fourteen millions, due fo the coal stili: idy. This year an additional ten millions would lie allocated to the sinking fund, leaving a surplus of £ 1.109.000. Three millions of the surplus would he earmarked for the purpose of tapering off the coal subsidy, and other purposes. lie pointed out that the estimates were based on a peace footing, whereas in the event of a prolonged paralysis of industry overwhelming them, he would have to propose supplementary taxation, which, at present he thought it right to state would comprise substantial increases in direct and indirect taxation. Air Churchill concluded: “Apart from unforeseen events, we see our wav fairly and clearly to finance the next two years. We must meet emergencies courageously as they arise." FRANCE'S PAYAfEXTS. PARIS, April 26. In the Chamber. Af. Peret announced that two million sterling of the French debt would he paid to Britain before December 31 next, and two millions more before the end of the .British fiscal year 1926-27. Those payments would be credited towards the annual payments which were to be deI finitely agreed on.

AFTER CHANNEL ISLANDS. LONDON, April 26

Mr Churchill, replying to a question, said that there appeared a reasonable prospect of securing death duties for the whole amount of Sir Robert Houston’s estate, the total of which had, he said, been probably exaggerated. The Government was considering the question of the evasion of taxation by the residents of the Channel Islands. Ho would not hesitate to ask the House to take any action suitable for protecting the revenue.

LONDON PRESS COMMENT. LONDON, April 27

The Budget was received without enthusiasm. AVhile it is admitted there is sound finance, disappointment is felt that there is no reduction in taxation The “Times” says: Air Churchill has faced the difficulties in this difficult year in the way in which they ought to be faced. The sinking fund operation cannot fail to have a favourable effect upon credit. The benefit will percolate through the whole industrial system.”

Several papers describe it as a

“ eliickory budget.” The “ Daily Express” says: “It only offers file abolition of the duty on eliickory, involving a sacrifice of only £SOO yearly.”

The “ Morning Post ” affirms that the success of the tariff preference ami the silk duty show that a general tariff would he justified. LONDON, April 27.

A meeting of the Liberal Parliamentary Party was held after the Budget speech. A 1 r Lloyd George presided. It was decided to oppose the new tax on betting, and also the raid of the Treasury on the road fund and the further protective duties proposed. LONDON, April 26.

In the House of Commons, ;t preliminary skirmish of the Finance debate indicated that the Alinistorialists are mainly content with the Budget as playing for safety, and clearing the financial ground for several years ahead.

The Oppositionists unitedly oppose the new taxes, which arouse intense hostility from quarters which do not usually co-operate.

Afr T.lovd George said he was unable to share the Chancellor’s satisfaction rccmling the restoration of the gold standard, which, lie claims, has restricted the export trade. He thought the betting tax would confer a bonus on street betting. He promised that the Liberals would unfiaggingly oppose protective duties. Tt is noteworthy that the hotting clause imposes n. ten shillings license on bookmakers, and a similar impost in respect of every address at which betting is conducted. A remission of the tax will be allowed in the case of bets laid off.