BRITISH BUDGET

Hokitika Guardian, 29 April 1931, Page 6

BRITISH BUDGET

F URTH ER. PA R TI.CTJ LAR S. (British Official Wireiess.) RUGBY, April 27. Mr vSnowden estimated the yield oi inland revenue at £43< ,00(MXH), consisting of £218,000,000 from income tux, £72,000,000 from tbe surtax, £90,000,000 from death duties, £24.000,000 from stamp duties and £3,000,000 from remaining items. He hoped the depression. which unset all expectations last year, had reached its limits, and better times were to store, but it would take a little time after the tide had definitely turned, beloro the revenue felt it definitely, and lie must face the probability of a further decline in customs and excise revenue, which lie esti. mated at £238,000,000, a drop of nearly £7,000,000 on last year’s revenue. The consumption of alcoholic liquors fell last year, and he estimated for ft Further fall in revenue this year. This fall seemed to Ik* a permanent tendency, and from the point of national well-being was to be heartily welcomed. Estimates of revenue from sources of ordinary revenue amounted to £702.000,000, nearly £2.000,000 above the actual yield from tin* corves, ponding items of last year, although £11.000,000..be10w the estimate of last year. In addition, £4,000,000 from the Rate Relief Suspensory Fund gave a total of £7()(i,000,000 revenue for the current year.

On the expenditure side, supply services accounted for £439.000,000, but be Imped, in, view of the appointment of the Economy Committee, that tiie actual expenditure would fall considerably below this. Of the fixed debt charge of £*255.000.000. be bad to allot £302.900.001)1 as interest ami management, leaving £52.000,000 available for sinking fund. The total estimated ex. peuditure was thus £803,36(5,000, ami i list an estimated revenue of £766,000,000.

Before proceeding to bis tax proposals, he said Ik* was taking power in the Finance Bill to enable the present holders Savings Certificates to make an extension of their investments, and power for a loan to meetcertain costs in connection with road schemes. In order to encourage the manufacture ol a new type ol light motor cycle, now being rapidly developed on the Continent, he proposed that the annual tax on, vehicles, not excepting 150 C.C. capacity, should be limited to 1.55. instead of the present 10s. Ha was proposing a change in the machinery lor the collection ol in.ume tax, which would place the collecting service under a single indivi Inal control, as recommended by a Royal Commission. ' FINDING THE MONEY. RUGBY, April 27. Regarding the problem of finding the necessary -additional revenue, namely, a total ol £3i .366.000, Mr Snowden said that- there were the strongest obstacles to any increase in Llic rate of taxation. Any taxes which would reduce the main consuming power of the masses must be harmful to trade. On the other hand, lie regarded this budget, like tip* war 'budgets. as being one dealing with a temporary emergency, and as justifying the use of temporary measures. Mem hers would be aware of the nature of the Dollar Exchange Account ropre- ; smiting some £33,(500.000 of advances, as credit, during the war, to lie utilised by the Treasury for purchases in foreign exchange, and also to finance payments For the Government’s oliligations abroad. Up' to recent days, he said, it was not possible to reduce this amount below £33.000,000. New circumstances, however, arose from The Hague agreement, and from the establishment of the Bank ol Interna tional Settlements. “Previously/' be said, “we received tbe payment of tbe reparations and of tip* instalments of' tbe French and Italian war funds in sterling, but we have now arranged that these funds should be placed to our credit in the Bank of International Settlements, in dollars, which we could utilise in making payment of our foreign debt.” These arrangements, he said, had been working for a year. It did not follow that the Dollar Exchange Account could be ■dispensed with altogether; but no doubt the amount of it was excessive for present or future needs, and it- could be reduced by £20,000.000. He had decided, lie said, not to propose any increase in tbe standard rate of the income tax; but instead to tide over the period. The concession wliereuuder the tax became payable in two equal instalments would be modified, so that now the first instalment, which is payable in January, would be threequarters of the total assessment. As a result of this, tip,* Exchequer would get an extra quarter of the year’s tax within the present financial year, and the estimated gain would lie £lO,000,000. Mr Snowden said lie proposed that the remaining £7.500.000 should he raised by increasing the prevent rate of duty on oil from 4d per gallon to 6d. which would still leave petrol no dearer than before March, and leave it. lower in price than it was last September. This would give him the funds he needed to balance tbe budget and revenue £803.500,000. expenditure £803.366,000. giving a nominal margin of £135.000. Any drop which occurred in the finances of the year should be met by economies. NO’THING SENHATIONAL. LONDON. April 27. Tl ie Budget is generally regarded as not being a sensational one. Tt lias pleased those who consider that an in-

crease in direct taxation should be avoided at all costs.

Tbe motorists, whose petrol tax is now (id per gallon, instead of 4-d, appeal’ to be resigned to tbe situation. Tbe change in the income tax collections had not been unforeseen. The burden of informed opinion sees herein a big step towards the restoration of the old pre-war practice of single yearly payment. Mr Snowden’s raid <m the Dollar Securities Fund is described as a clever manoeuvre, reminiscent of Air Churchill’s raid on the Road Fund. TORY CRITICISM. LONDON. April 28. The Conservative. Air Samuel, referring to the raid in question, says that All" Snowdon has succeeded in balancing the Budget by “Robbing the money box on the mantelpiece.” Tiu> “Daily Aiail” says: The Budget is neither wise nor .prudent. ft helps no British worker or taxpayer. The payment of three-quarters of the income tax, instead of hall the assessment. in January of 1931. will in Hint a cruel hardship on thousands of modest homes, besides seriously embarrassing business. ‘‘Th H Times.” in an editorial, says: ; The outstanding features of the Budget are its unwarranted optimism, the misplaced fertility of the makeshifts, the display of the ingenuity of the tax extractor instead of zeal for economy; and the raiding of the dollar exchange. Tlie raiding ol the dollar exchange fund will damage Britain’s position, while ; i /in view ol Germany's position, iit involves an unwarrantable risk to the taxpayer. It is like the dentist s [>atie nf who has escaped Iron) the most painful attention until the next visit. The “Daily Telegraph” says: Tbe Budget, within the limitations of Mr Snowden’s free trade principles, is an eminently sensible piece ol work. It recognises it, as the paramount duty In let the taxpayers off lightly. The “Alorning Post” describes the Budget as “a sufficient unto the day scheme.” It states Mr Snowden is trusting to Providence to escape a deficit at the end of the year, and has closed the existing gap by a process of jugglery.