BUDGET DETAILS.

Shannon News, 1 May 1925, Page 4

BUDGET DETAILS.

MAKING BRITAIN HOME OF ALL BRITISHERS. (Received Wednesday, 7.80 p.m.) LONDON, April 2a. Mr Churchill estimated the expenditure for 1925 at £799,400,000 and the revenue at £826,000,000, with a surplus of £26,600,000. The expenditure, £9,400,000 over last year's Budget and £3,700,000 over the actual \ expenditure last year, was a disappointing result, due to the rapid political changes in the last three years not conducing to economy and his inability searchingly to scrutinise the estimates. Cabinet had agreed to establish a standing committee of Cabinet to overhaul recurrent expenditure, in addition to the Treasury's annual scrutiny. "Wo ought." he said, "to aim to get a reduction in supply and expenditure of not less than ten millions per year," He believed the revenue would steadily expand and a resolute effort would enable a yearly mitigation of the heavy burden of taxation. He pointed out last year's remissions in taxation meant a progressive loss of revenue of fourteen millions. Ho anticipated a gradual and slow improvement in trade, but did not feel justified in Budgeting for any substantial increase in trade. The rates of death duties -excepting small and the largest estates would be increased yielding £4,507,000 in the present year and ten millions in the full year, besides new duties on certain luxuries and he hoped there would be a small additional duty on imported beer, to countervail the tax on the home brewer. The McKenna duties would produce, one million six hundred thousand this year and there millions in the full year. The cost of ordinary income tax reductions would be three millions this year and seven and half millions in (he full year. Reduction of super tax would cost £7,000,000 this year and ten millions in the full year.

The compulsory pension insurance scheme would affect fifteen million people. Employers and workers would each contribute at the rate of (onrpenc.e for each man and twopence for each woman. The scheme would operate in successive stages, beginning on January 4, 1926'. The State's ultimate capital liability was estimated at £750,000,000. The scheme would cover virtually the whole area of the wage onrning population. He referred to the prolongation of the span of life, which, with the rapid increase ot population in Victorian times, would have the effect of increasing the payments of old age pensions to sixty millions annually in fifty years, compared with twenty-seven millions at present. The new proposals aimed at ultimately placing the whole fund on a self-supporting basis by means of progressive increases in contributions. He explained that widows of In-

sured men would receive ten shillings weekly, plus five shillings for the eldest child and three shillings for the others. Existing widows of men insured under the previous Act yrouia receive similar benefits, but only t.*i the youngest child reached fourteen, -while orphans would receive 7/6 for the eldest and five shillings, for the others This scheme would affect 200,000 widowed mothers and 2fco,uuu children. All persons qualified to insure after 1928 would draw ten shillings weekly at the age of sixty-five, regardless of private means. Those not insured, but eligible tor pensions at seventy years, will also be relieved of restrictions regarding means, by allowing a rebate of onesixth on earned incomes, instead oi one-tenth, as at present. Incomes under £IOOO will benefit approximately by sixpence the smaller incomes by much more He proposed to give effect to the British Government's proposals in connection with the Imperial Conference of 1923, so far as they did not involve additional duties on food. He proposed to remove the existing duties on Empire dried fruits and increase the preference on Empire-grown tobacco from one-sixth to one-fourth, on the full duty. He proposed to increase the preference on heavy wines from one-third to two-thirds and to increase the preference on sur-tax sparkling wines from thirty to forty per cent., and futhermore to restore for a decade the preference on sugar to the level at which it stood before the duty was reduced last year. These preferences will operate- from July 1 and will cost £1470,000 this year and £1720,000 in the full year. The duty on hops will be subject to a Dominion preferential rebate of one-third. He remarked that the Budget did not include a provision for inter-Allied debt repayments to Britain, but he was Budgeting nine and a-half millions sterling from Germany, whereas twelve millions were received under this head yesterday New taxation would yield £10,230,000, bringing the surplus yp to £3G,830,000. New taxation should yield twenty millions and after the current year he would propose legislation following the resolutions of the Economic Conference in 1923 concerning the liability of. Dominion 1 Governments trading or owning propery in Britain and legislation for income-tax relief in favour of High Commissioners residing in Britain. He concluded amid cheers with a peroration,; emphasising the non-elass and'"non-party nature of the proposals aiming at apportioning burdens proportionately to the ascent of the ladder of wealth, liberating the production of. new wealth from the shackles of taxation, promoting contentment stability a-nd so make Britain truly th,hom e of all its people. Thunder of Opposition Reserved. The House of Commons agreed to all Budget resolutions after brief speeches by Messrs. Snowden and and Lloyd George. The former reserved his thunder for ' protective duties, especially the McKenna duties which he declared the Labourites would repeal at the first opportunity. As regards Imperial Preference the ex-Chancellor-was "not opposed to the rebates, which were not of a protective character, but Mr. : Churchill's duties were protective, and consequently invited strenuous opposition. Mr. Lloyd George similarly regretted the revival of a controversial issue, but was generally congratulatory, pending a closer examination of the proposals.