TAXATION IN BRITAIN

Waikato Times, Volume 122, Issue 20509, 27 May 1938, Page 7

TAXATION IN BRITAIN

DEFENDED BY THE CHANCELLOR REPLY TO LABOUR MEMBER’S CRITICISM RELIEF AFFORDED IN AIR RAID PRECAUTIONS (Official Wireless) (Received May 27, 1 p.m.) RUGBY, May 26 Speaking in the debate on the Finance Bill in the House of Commons, Mr A. V. Alexander (Labour) declared that the Government had increased the deadweight debt from £7,400,000 to £8,500,000 and had started a series of unbalanced Budgets, after absorbing for expenditure the whole of the economies of the war loan conversion operation. His criticism of the Finance Bill he based on the contrast which he sought to draw between the profiteering which he alleged was taking place out of re-armament and from the State subsidies on the one hand and the heavy indirect taxation on the other. Sir John Simon, replying, rebutted the suggestion that taxation was inequitably distributed, and referring to the balancing of the Budget and borrowing he said he had kept two propositions in mind in considering the right course to adopt. The first was that borrowing only postponed payment and did not obviate it, and the second was that the increased burdens which they faced to-day were not likely to he reduced quickly or substantially. The Chancellor then made an important announcement on the relief to he afforded in respect of air raid precautions. He said the Government would introduce legislation to secure that the annual values of properties should not he increased for the purposes either of income tax or for rating by reason of the expenditure incurred in structural alterations, additions or improvements, made solely for the purpose of protection in the event of air raids. Sir John said there was no proof that there had been vast profiteering in armaments.