The Times. PUBLISHED ON TUESDAY AND FRIDAY AFTERNOONS. FRIDAY, JANUARY 25, 1918. BRITAIN'S WAR BILL

Pukekohe & Waiuku Times, Volume 7, Issue 348, 25 January 1918, Page 2

The Times. PUBLISHED ON TUESDAY AND FRIDAY AFTERNOONS.

FRIDAY, JANUARY 25, 1918. BRITAIN'S WAR BILL

"We nothing extenuate, nor let down auaht in malice."

.*» Up to the end of September, I'UT, the latest date to which returns are available, the war had cost Great Britain £5,1)00,000,000. Of this amount £1,100,000,000 had been advanced to England's Allies, and ,£160,000,000 to the overseas Dominions. Russia has had over half of the £1,100,000,000 advanced to Allies, these advances being chiefly in the form of war equipment made in Great Britain. The actual increase in the national debt up to the end of September, IIM7,l I M7, was £'V>u(i r 00(1,000 deductions being made (1) for loans to Allies and the Dominions : (2) for the portion of war expenditure paid out of revenue from increased taxation ; (3) for the future repayment of the millions expended in the State's purchases of large stores of wheat, sugar and other commodities for civilian consumption. Before the war began the national debt stood at £645,000,000, so that the war has already increased it six-fold. It is estimated that for every six months that the war continues after September, 1917, £750,000,000 will be added to the national debt. And even when the war ends, the war expenditure will not cease. Many of the war contracts for war stores, such as uniforms, boots and food, will have to be continued until the British army of 5,000,000 men is demobilised. The process of demobilisation will take over two years, for it will not be possible to absorb the j soldiers into civilian occupations at a much faster rate than 50itu ;i j day. During the process of de- j mobilisation the cost of maintain- [ ing the army, though gradually j decreasing, will be heavy. It is] impossible to say when the war ' will end. and therefore it is ini possible to say what Britain's total war expennilure will amount j to. But as there is little or no prospect of the war ending before I

Ha autumn ill i'M s it i> quite certain that Britain's national debt after the army has been demobilised will exceed £5,000,000000, To pay the interest and sinking fund on a national debt of £5,000,000,000, and to pay the ordinary peace expenditure of the country, it will be. necessary for Great Britain to raise each year a revenue of over £450,000,000. The peace budget before the outbreak ot war provided for a revenue of £200,000,000, this being the largest budget in Britain's history, either in war or peace up to 1914. Therefore the war. even if it ends this year, will add £250,000,000 to the annual budget "of the British taxpayer. Owing to the increased taxation which has already been imposed to help to meet the war bill, Great Britain raised last financial year £573,000,000, of which £205,000,000 came from income tax, and £140,000,000 from excess profits tax. The latter tax has yielded a far greater revenue than was exoected when it was first imposed ; and for the current financial year it will bring in over £200,000,000. But the tax is a war measure, and when peace comes it will have to be remitted.