BRITAIN'S WAR BUDGET PENNY A PINT ON BEER: INCOME TAX JUMP TO 7/6: EXCESS PROFITS TAX
LONDON, TO-DAY.
Referring to the Increase of on- pital wealth of individuals during the war, Sir John said the capital lavy was being studied but it was not practicable to apply one 'dur. ing the war.
The new proposals would produce £107,000,000 this year, and over £226,000,000 in a full year.
Sir John said it must not be assum- ed that these enormous figures were. proof that there had been prodigious squandering and waste.
ELABORATE MACHINES
THE CHANCELLOR OF THE EXCHEQUER, SIR JOHN SIMON, INTRO-
Truth was that increasing complica- DUCED HIS FIRST WARTIME BUDGET IN THE HOUSE OF COM-
tions and elaborations of machines of war and the mechanisation which úc- MONS YESTERDAY AFTERNOON.
Announcing further modifications incompanied the development of mili- tary force, had also greatly increased Sir John announced all-round increases in direct and | estate duty Sir John said:
"I now propose that in relation
to this cost, indirect taxes, the main points being:
deaths taking place after to-day (A The Chancellor of the Exchequer gave There will be a lot) (loudi an Instance of the cost of modern Income tax is increased to 7/6d. in the Pound for voice:
the full year next year, but the rate will be 7/-aughter) the duty on estates exceed-aircraft, which he said was from three
ing £10,000 but not exceeding £50,- to for taxes payable at the end of the present finan-000 cial year on March 31..
The new income tax rate is the highest since the tax was introduced in the year 1798. At the end of the Great War it was 6/-.
Sir John Simon announced reductions in allowances, and
increases in the surtax and death duties.
shall be increased by 10 per cent."
seven times that of comparable types in 1818.
Sir John added that by agreement with defence minister qualified and experienced businessmen had been re- cruited in order to see that the pro- posals for new expenditure were intramed with strict regard to the ne-
cessity of finance-Reuter.
Sir John Indicated that for en- tates over 250,000 the Increase would be 25 per cent., the yield from these increases being estim. ated at £6,000,000 in a full year. In addition, Sir John proposed creases to all taxes on alcoholic liquor to take effect as from to-day.
There will be an addition of a pen-
He ended by declaring: “It the price of victory be high, it is a price worth
and all that. makes life worth living in Europe and for ourselves."— Bri- and £27,000,000 in a full year,
Spirits, with added duty, would cost tish Wireless.
ed to produce £11,000,000 this
year
There is to be another 1/3d. on whisky, the price per bottleny a pint on beer and this is estimat paying. It is the price of our liberty
to be 13/9 as compared with 12/6d. Beer will be a penny dearer per pint, and there will be cor- responding increases in wines of from 2/- to 4/- a bottle.
The tax on tobacco is to be raised by 11⁄2d an ounce, and there will be an extra penny a pound on sugar.
There was a need to avoid inflation, the Chancellor stated.
We should also increase food pro- duction from our own soil and pro- mote our export trade.
Sir John also announced an excESS profits tax of 60 per cent, on any in- end of in profits since the March. It would apply to the whole 'field of trade and industry.-Reuter.
crepse
At the outset, Sir John said that when he introduced the Budget at the end of April, he estimated the ex- penditure of the year would amount to £1,322,000,000.
The defence expenditure included in that vast total was, at that time, stated as £630,000,000.
The budget proposals were cal- oulated tó raise from rovenuo 942,000,000 and consequently at that time £380,000,000 was loft to be borrowed within the financial year.
AUGUST POSITION
13 shillings and 9 pence a bottle and this is estimated to produced three and a half millions in a full year. There will be further additions
The Exchequer would need money on an unprecedented scale and for that vast need over the period of the war, taxation would have to make a max-light wines. imum contribution.
But it is obviously impossible that the whole of the expenditure in a war like this could be pro- vided from the proceeds of taxa- tion.
N. D. LOANS
It will be necessary to supplement this provision by revenue from ila- tional defence loans on a large scale.
It would be the duty of the private citizen to contribute to the greatest possible extent to the loans when an- nounced.
When that time came it would be found that various types of loans would have to be offered. Sir John ernestly appealed to all citizens and institutions in the coun- try to refrain from unnecessary capi- tal expenditure and to put whatever savings they could make with a view to devoting them to the new loans is- sued for the prosecution of the war.
The House would see that the em- ergency budget would call for several sacrifices.
Before the finance act was passed the figures in this year's expenditure of defence had grown to a total of
High as was the five and sixpenny £730,000,000 and the amount to be
the borrowed at that time came to some-income tax rate was, it must in
circumstances of the war be substan- thing like £480,000,000.
tlally increased.
Total expenditure when Parliament rose in August was £1,453,000,000 of which £502,000,000 was to be borrow- ed.
These totals vast as they were, were
re arrived at on the basis that we mained at peace throughout the year!
One September 3 we wont to war and the vote of a credit of an additional £600,000,000. promptly adopted.
was
-NO GUARANTEE Sir John Simon said that he could not guarantee that this first vote of credit would be sufficient to cover all the requirements up to March 31 next.
The need for a further budget as promptly as possible was self. avident as we should be facing in this financial year a total outlay of nearly £2,000,000,000..
The great war in which this coun- try was engaged set for us a special economic problem and if this is not properly faced and not boldly handles then our power to carry on the war to a victorious conclusion would be gravely weakened.
Finance, was sometimes' said to be the fourth arm of defence. If finance failed then the prop which sustained the whole war effort collapsed.··
10
TWO OBVIOUS WAYB There were two obvious ways make the best use of our productive sources taxation and borrowing--and doubtless we should have to recourse, to both.
SEVEN SHILLINGS THIS YEAR
. Sir John explained that the increase he contemplated in the rate of income the tax could not take full effect in present year and the reductions which the he felt it his duty to propose in existing allowances could not be made operative in time for collection due on. January 1.
The plan he put forward was that of in the full year the standard rate income tax should be seven shillings and sixpence in the pound.
he
During the present year he propos- ed that the standard rate should seven shillings.
This rate should be regarded as a compoalte rate made up of five shillings and six ponce for the first quarter and sovan shillings and six pence for the other three quarters.
The income tax due by direct pay- ment on January 1 next would made at the seven shilling rate.
he
in
After indicating that allowance respect of income tax would be re- duced Sir John turned to surtax and intimated that he proposed that the new surtax scales should run from 15 pence up to £2,000 to nine shillings and sixpence for Income over £30.- 000.
ANOTHER £5,000,000. By this means the surtax would produce another 25,000,000 this year and £8,000,000 in a full year.
on
E.P.D. 60 PER CENT. Other increases include a penny a refineti sugar, two pound on fully shillings a pound Increase on tabacco, a 60 per cent. excess profit tax mo- delled on armaments profits, and duty applied over the whole field of trade and industry.
DISSOLVING FRENCH
COMMUNIST PARTY.
Paris, To-day.
approves Com- M.
The entire French press of the decree dissolving the munist Party in France, except Leon Blum, the former Socialist Pre- mier, writing in "Le Populaire."
The Communist -press no exists in France.-Reuter.
longer
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