1940-07-24 — Page 3

THE CHINA MAIL, JULY 24, 1940

BRITAIN

SPENDING

8 MILLIONS DAILY

House Hears A "We Can Take It" Budget Speech All-Round Increase

In Taxation

SIR KINGSLEY WOOD, CHANCELLOR OF THE EXCHEQUER, BEGAN HIS BUDGET SPEECH IN THE HOUSE OF COMMONS AT 3.20 YESTERDAY AFTERNOON TO CRIES FROM THE OPPOSITION BENCHES OF “GET YOUR MONEY READY."

The Chancellor said that in the April Bud-| get the total of 2,000 millions was given with all reserve as a provisional round figure for war expenditure during the current year.

It was then stated that under present con-

ditions any estimate made for so long ahead

was bound to be largely in the nature of a guess.

Revised estimated war expenditure for the current year was £2,800,000,000. Revised estimated excess of total expenditure over total revenue would be in the

region of £2,200,000,000.

The figure of £2,000,000,000, the sums that will have to come! estimated in April for war expen-still further from this source. diture represented an average of "There are severe limits at any 40 millions weekly during the rate on certain means of obtain-

ing new revenue.

year.

The rate of expenditure-during recent weeks had been 50 mil- lions. Latest figures showed that for the four weeks ended July 20 the rate was 57 millions sterling weekly.

000,000 in estimated war

cx-

"Income tax-five years ago was at a standard rate of 4/6d and yielded roughly £290 mil- tions. To-day the estimated yleld is £525 millions.

With the increase of £800,- "In present circumstances I must Jask for a further contribution from the direct taxpayer and I be- will readily

respond (Laughter and cheers).

penditure the total of all exlieve he

came to £3,400,-

penditure

067,000.

་་ PROPOSE TO INCREASE;

The excess of total expenditure THE STANDARD RATE OF IN- thus estimated over revenue would be in the region of

£ 2.200,000,000.

While the gap between revenue and expenditure was formidable it was not so alarming as at first "sight"|might" appear.

SHANGHAI

FOOD SITUATION AFFECTED

(SPECIAL TO "CHINA MAIL")

Shanghai's food supply is being affect- ed by the practical stopping of coastal traffic with Chekiang province following the opening of naval operations by the Ja- panese in that area. No coasters sailed to Wenchow fast week while the Portuguese m.v. Sintra in being held by the Japanese naval authorities out- side Wenchow. Hávas.

COME TAX FOR THE WHOLE OF THE CURRENT YEAR ΤΟ CREASE I PROPOSE TO ALTER able method of collecting income 1/6D AND WITH THIS IN-the only satisfactory and work- THE RATE ON THE TAX THAT tax was deduction at the source S CHARGED ON THE FIRST month by month and week by £160 OF TAXPAYERS' IN-[week. He appealed to employers

Drawing On Resources COME.

to give their co-operation in this

"To meet that part of our ex- "The rate chargeable In this task. penditure paid overseas we are one of income is at present half able to a considerable extent to the standard rate, and with the in- draw upon outside resources increase of the standard rate to 8/6d, three principal ways.

'he reduced rate should automa- "Firstly we can dispose over-loally rise to 4/3d. seas of gold which is the pro-

"I propose that this reduced perty of Government and rate should be increased to 5/- in which other nations are ready the pound." to purchase.

The Increase in income tax

Beer And Tobacco

an-

The Chancellor then nounced an increase In beer duty of a penny per pint, with an additional yield of £13 millions.

Tobacco duty would also be in-

"Secondly we can dispose of would produce in a full year £81 securities which Government has millions and in this year £60 creased by à further 2/- per lb., purchased from persons in this millions.

country.

"Thirdly the Dominions and

India are not spending the whole

Surtax Higher

of the proceeds of our large ex- The Chancellor announced in- penditure upon thele products creases in the scales of surtax but are allowing part of them under which the rate of the first to accumulate in the form of slice of income in excess of

representing an additional yield of 29 millions for a full year and £6 millions for this year.

The stabilised preference on Empire tobacco would be main- tained.

Wines must also contribute as from, to-day (Wednesday), added

balances and other short term £2,000 would be increased from the Chancellor.

investments in this country:"

Still A Large Gap

The Chancellor said there was

a large gap to All which would require further considerations

1/3d to 2/- in the pound.

The peak rate of 9/6d would) Increase on light wines would

come into force in Incomes In excess

respect of of £20,000)

be 2/1d per gallon, and on heavy wines 4/-, making the duty on; Instead of £30,000 as at pre-heavy wines 16/- per gallon.

light wines 8/- per gallon and on

The preference for wines from the Dominions and Colonies would be maintained.

sent.

he estimated

and continued efforts in the This Increase form of increased taxation and would produce £11 millions, in a additional savings, and behind full year and £8 millions this this formidable problem there year. lay economic problems of funda- On incomes mental importance.

One consequence of the huge expenditura which Govern- meant, was incurring was that the total money income of the community. Woo on balance higher than it was.

It was the Government's inten- tion to extend the restrictions on normal supplies to traders.

"There must be Inarassad

in excess of

Entertainment

£20,000 annually the State would! The duty lake nine-tenths of every pound.would also be increased to pro-

on entertainment; Result of the increase of the duce an estimated. additional re- income tax and surtax would bo £639,000,000 for a full year,

Įvenue of £4 million in a full year. compared with #290 miliona which were produced five years| ago.

Sir Kingsley announced a fur- ther increase of 10 per cent, on

These proposals in the aphere: of direct and Indirect taxation as a whole would give him £80 millions in the current year and £129 millions in a full your. The Chancellor indicated

that!

Deduction At Source als.

of

By this action they would en-estate duty which would produce the purchase tax as now outlined able manufacturers to maintain about £6 millions in a full year would involve a reduction in the and where possible extend the and £1 million in the current amount the Exchequer would re- export trade, which raust be re-year. garded as a vital part of the war

ceive under the original propos- effort.

The Exchequer would secure direct and indirect taxation," Remarking that the task the-substantial sum in, a full year Sir Kingsley stated. It is evi-Anding enough money to pay of approximately £110 millions. dent that further taxation, on income tax in two six-month in- The present Budget would thus the largest scale possible and stalments was becoming increas-provide in a full year the further covering

as wido a field najingly difficult, the Chancellor an-sum of £230 millions. possible is Imperative....

nounced an extension of the The April. Budget imposadi principle of deduction at the

new charges, of £128. miflions, source · to the whole range of

making in all an additional sum of 2307 millions imposed in the last three months,, excluding 240 milllonia in confoxlon with

Income Tax

•

"It is also equally plain that we salary and wage earners, from the cannot expect to raise by_taxa-manual labourer to tion, at once and with one Budget director,

company

so quickly, following another, all! The Chancellor, belloved that the props, profity tax mend

,70

IM ALG

J. CALZ sal al vott al

Savings Success

Remarking that already over £300 millions had been raised on 3 per cent. war bonds, £250 millions on the sale of savings certificates and defence bonds, and £110 millions by the new 216 per cent, war bonds, the Chancellor said that the success

of these saving efforts led him to believe that the task of filling the gap between expenditure and re- venue was by no means un- manageable,

The financial problems that faced the country were un. doubtedly many and difficult but they would have full con. fidence that they were by no means unsurmountable.

"We have many resources and) on our determination and capa- city to use them to our utmost there can be no doubt.

"As in the field of war so ir the vital area of national finance

we

are determined to continue | on our course unceasingly and at any sacrifice until victory has been achieved." (Loud cheers). - Reuter.

PREMIER HALF AN HOUR WITH KING The King received Mr. Winston Churchill in audience at Buck- ingham Palace for half an hour last night.

►

Air Chief Marshal Sir Cyril Newall, Chief of Air Staff, was also-received-in-audierice.--Reu- ter.

BOMBER SHOT DOWN

An enemy

bomber was

shot! down by R.A.F. fighters near the north-east coast of Scotland yes- terday afternoon, says Reuter.

MAYOR OF

SALT LAKE CITY BURNS UP DISTANCE

The American rac- ing motorist, A. B. Jenkins, who is now the Mayor of Salt Lake City, broke the world's record at Salt Lake City yesterday, for a 24 hours' run at an average speed of 161,18 m.p.h.

His OWIT previous record

was 157.27 m.p.h.

Jenkins has now broken every "world record from 50 kilo- metres to 3,000 miles and from 1: hour to 24 hours.

He once lapped the circular 11-mile course at 189 m.p.h.' the fastest speed ever made on a circular. course.-Reuter

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