BRITISH BUDGET

Hokitika Guardian, 16 April 1929, Page 5

BRITISH BUDGET

DROP IN BEER REVENUE

A SURPLUS SHOWN.

BOOKMAKERS TAX REDUCED,

(Official Wireless)

(Received this day at 10.30. a.m.) RUGBY, April 15.

Hon W. Churchill, Chancellor of the Exchequer, introduced his Budget today in a crowded House of Commons. In regard to the revenue lie said last year customs and excise showed a deficiency, almost entirely accounted for by beer alone. Beer showed a fall of £7,350.030. 'Flint was an Exchequer embarrassment, but not a national misfortune. The steady decline in the consumption of alcoholic liquor throughout the land was due to the change in national habits and the growth of alternative beverages. After making full allowance for trade conditions, ho could not estimate for more than £79,000,000 in beer revenue this year. He estimated this year £239,500,000 in' income tax and £81,000,000 in death duties.

Owing to the continued Stock Exchange activity and the flotation of new companies, stamps had jlolded £2,000,000 above the estimate of last year, and lie estimated a further growth this year to bring the total to-£31,000,000. '■ He estimated to receive this year £1,703,000 from 'excess profits duty and corporation profits tnx, air £58,000,000 from super tax. The receipts from taxes he estimated at £674,650,000. . From non-tnxed revenue he expected to receive £79,290,000, making a total of ordinary revenue of £753,940,000.

The ordinary expenditure was estimated at £741,964,007 so that he anticipated a surplus of £11,976,003. No new taxes would be imposed this year.

On the other hand Hon. Churchill stated the tea duty would be immediately removed, the cost being £6,000,000. Ono tax for which be had been icsponsible was the betting tax. It had been more trouble than it was worth. The tax on the bookmakers turnover would be immediately repealed. The bookmaker in future would pay £lO per year for a certificate and in addition he would pay a license duty of '£4o for every telephone installed in his office. Half per cent would be levied also on the takings bf the totalisator, which he had been led to believe would be a fair equivalent to the license duty on the bookmakers. The yield on these levies would he £850,000 in the current year and £900,000 in the full year. There would be a twenty-five per cent reduction in the licenses for the retail sale of beer and spirits, in view of the curtailment of the hours of sale since the war. This would cost nearly £2,000,000 in the full year.

Harbour dues would be reduced

Despite the above mentioned concessions Hon. .Churchill estimated the Budget surplus at £4,090,0C0. Reviewing the financial position Hon. Churchill said the period of the Government term of office was chequered. There was the Industrial disaster. of 1926,' but after two years of quiet there had lieen a sensible improvement in the situation. The savings of the smallest class of investors had increased while the Government had been in power by £170,000,000. The cost of living had declined at least eighteen points, a symptom on which ho dwelt with more confidence than on any other. As indicating the general condition of the masses of the people, there was an increased consumption of tea and sugar. Before the Great War the British people consumed annually 6.55 pounds of tea and 81 pounds of sugar per head. Last year they consumed 9.15 pounds of tea and 90 pounds of sugar. That was a record consumption of those commodities. The balance of trade had sensibly improved the power of the community to export and invest capital abroad, thus fostering the export trade which had risen from £86,000,• 000 in 1924 to £149,000,000 in 1929.

New capital issues for home investments in 1928 showed a growth of about £100,000,000 over 1924. Whatever mi gilt he the future of the particular industries or particular localities, we were undoubtedly dwelling to-day in a more powerful and more wealthy and more securely founded community than five years ago. Wo were steadily improving our conditions and compared with most European countries, maintaining our prewar level.

Speaking of the gold standard and tin* post of living, Hon. Churchill admitted the gold standard carried with it troubles as well as rewards hut his hope and faith was that these troubles were minor and temporary, and the rewards would be major and permanent. Trade has derived a lasting benefit from the resumption of the gold standard. He referred to the benefits it conferred on overseas trade, which constituted a stepping stone in times of peace. Of our economic position in London in spite of the sarcifiees made by Great Britain during the war, we were regarded as a solid international preeminence, and we were still the greatest international market. We had boon able to maintain money rates lower than those which normally prevailed in New York, while hills of exchange on Loudon which after the war were so seriously menaced, had in the last lew years regained their time-honoured

positions as the favourite international instrument and token of commerce. There bad been a decline in the cost of living as a result of our allegiance to sound money. This decline oi 18 points was an increase in the purchasing power o*f wages equivalent to a remission of £160,000,000 a year in indirect taxation.

In regard to the debt operations of the present Parliament the Chancellor said the nominal deadweight of £7,598,000,000 had (fallen to £7,501,OOO.OOi). Interest on the debt by the operation of the sinking 1 mid bad been reduced by £9.500,000 a year. LONDON, April 15.

The reduction of harbour duties applies only to Hie herring industry.

File tea duty remission means a reduction in price to the public of fourpence per pound. The benefits of the de-rating scheme applies to agriculture forthwith, and other industries in October. In view of the criticism that brewers, distillers, and tobacco manufacturers would benefit from the de-rat-ing measure designed to assist distressed industries an increase of duties imposed on the three industries would counter balance the gains under the de-rating.

BUDGET CRITICISED. (Received this day al 12.25. p.m.) LONDON, April 15.

Mr Snowden, following Mr Churchill, said the Budget was really an electioneering speech. It was ver.i different from what the House were led to expect. A more shameless piece of election bribery had never been presented by any political party. The speech was in tlio nature of a swan song. 'lf Ministerialists thought the Budget would be of advantage to them at the elections they were under rating the intelligence of the electors.

Mr Lloyd George said lie did not complain that it was an electioneering speech. “What I object to is the high moral standard Mr Churchill takes off anyone else who has an electoral purpose in mind. He was very severe about my suggestion of borrowing two hundred millions but himself has spent four hundred millions without providing anything like substantial employment. From the point of view of dealing with a grave situation the Budget is extremely disappointing.” The usual Budget resolutions were agreed to and the House rose.