CHURCHILL’S PLANS GUARDED

Sun (Auckland), Volume 1, Issue 17, 11 April 1927, Page 1

CHURCHILL’S PLANS GUARDED

budget awaited SPECULATION IN BRITAIN TAXPAYERS APPREHENSIVE {British Official 'Wireless .> (Copyright. > RUGBY, Sunday. The Budget statement by the Chancellor of the Exchequer, the Rt. Hon. Winston Churchill, which will be made in the House of Commons on Monday, is awaited with keen interest. It is beli#ved that Cabinet yesterday approved the Budget proposals, which are a closely-guarded secret. It is believed that the Chancellor has no intention of departing from orthodox lines in meeting the difficult situation. Mr. Churchill is spending the weekend in the country preparing his speech. GOVERNMENT DEFENDED The Minister of Health, the Rt. Hon. Neville Chamberlain, referring to the Budget in a speech last night, said that the Government fully realised the strong feeling that existed as to the serious nature of the burdens of taxation, but he reminded his hearers that by far the greater part of the nation’s expenditure of over £800,000,000 annually was accounted for by items which could not be so taxed. If for'instance the rate of interest on the national debt were lowered the Government would be breaking its word with the people who lent money to the State. Moreover, it must be borne in mind what a tremendous injury had been done by the events of last year. But for the coal subsidy in the first instance and the consequences of the long stoppage the Government would certainly have fulfilled its anticipations. As a matter of fact vast sums had been saved in one way or another. RAIDS FOR FUNDS Conservative newspapers unhesitatingly declare the Government has failed to redeem its pledge to economise. Instead of reducing progressive expenditure by £10.000,000, as promised, they say it has been increased by £10,000,000. It ts expected that Mr. Churchill v ill raid the Sinking Fund to the extent of £20,000.000. and justify the step by attributing it to the disastrous industrial year, though the soundness of that argument is seriously questioned. The Road Fund, which is provided by direct motor taxation, will certainly be raided again. This will allow the Chancellor to pass over the income tax. as to which public opinion is too strong to risk an increase. The tobacco duty will almost assuredly be further increased to the ext>nt of sevenpence a lb. It is said the idea is to tap the enormous profits of the tobacco trade and prevent the tax being passed on to the consumer.