Britain's Budget.

Manawatu Herald, 17 April 1902, Page 2

Britain's Budget.

INCREASED TAXATION PROPOSED. In the course of his Budget speech, Sir Michael Hioks-Beaoh, Chancellor of the Exchequer, said the revenue was buoyant, though the value of foreign trade had declined owing to the fall in the price of coat. Last year the expenditure totalled £195,522,000. The total cost of the South African and China wars up to the end of March was £165,000,000, less the amount of the Chinese indemnity (£6,000,000), which was still unrealised, and an eventual contribution from the wealth of the Transvaal. f The expenditure next year he estimated at £174,609,000, and the revenue at £147,786,000. Although he hoped for peace, he considered it would be safer to add £18,500,000 to cover war contingencies, fresh railways in the conquered countries, bounties to soldiers, return transport ior troops, and generous provision for the relief and reinstatement of loyalists and enemies, part of such loans being repayable from suspension. The sinking fund reduced the deficit to £41,000,000. The addition of a penny to the income tax would yield two millions for the present year, and two and a half millions for the next. The speaker promised that the income tax would be the first tax to be reduced. The duty on bills on sight, dividend warrants and cheques would be increased by a penny in the pound, and the increase would yield half ft million. '

It would be useless, Sir Michael said, to touch beer, spirits, wine, tobacco, tea or sugar. He preferred a registration duty of three pence a hundredweight on imported corn and grain, and five pence a hundredweight on flour and meal. These would yield £2,650,000 for the year. He ° proposed to issue a lean of thirty-two millions,"and to provide for the balance of the deficit, amounting to £8,850,000, by draft on the Exchequer balances. Possibly he would ask for additional temporary borrowing power to the extent of ten or twelve million* later on. A. discussion followed the delivery of the speech. Sir William Harcourt considered the tax on corn was the least desirable class of tax. Mr Henry Chaplin, Mr Lowther and Sir Howard Vincent approved it. The House by 254 votes to 168 sanctioned the duty on corn and flour. A few Unionists voted in the minority with the Liberals and Nationalists. The Unionist press endorse the corn and flour duties, considering that they will practically not affect individuals, but grumble at the additional income tax, and condemn the stamps duty as irritating and meddling.