THE IMPERIAL BUDGET.

Gisborne Times, Volume XXVII, Issue 2490, 1 May 1909, Page 5

THE IMPERIAL BUDGET.

CABLE NEWS.

GREAT SHRINKAGE IN REVENUE, .* INCREASE IN EXPENDITURE. United Press Association— -Copyright, LONDON, April 29. The interest with which Mr Lloyd George’s Budget speech is anticipated is keener than any Budget since the late Mr Harcourt’s of 1894. Mr Lloyd George, Chancellor of the Exchequer, has issued a white paper embodying the facts usually contained in the first parts of the Budget, showing that the revenue for lyuS-1909 amounted to £150,578,000. He estimates the revenue for 1909-1910 at £148,390,000, and the expenditure at £104,152,000, leaving a Budget deficit of £762,000. A decrease is expected in the revenue, and this was duo to the necessity for estimating a reduction of a million pounds in Customs duties, and a million and a half pounds in excise duty as compared with 19081909. Incomes assessed for income tir» totalled 1040 million pounds, and, the Id in the £1 tax produced £2,833 OPfi. The National Debt amounted to £751 - 121,309. The diminution in c oreign trade in 1908 was 114 million pounds, whereof from a third to a half was accounted for hv the general fall in prl.-cs below the 1907 level. It was impossible to prophecy an immediate rapid i - covery, but there wero some indications of foreign trade, beginning .to improve. Death duties amounted to £18,370 000. In the House of Commons, Mr LiryuGeorge, in his Budget speech, proposed to reduce the sinking Minus. hi crease the death success 1 on cLit.es, increase the spirit duties, heavily increase the taxation on unearned incomes, and increase the tobacco duty, leaving beer, tea, and sugar untouched. DRASTIC TAXATION PROPOSALS. LARGE INCREASES AND NEW TAXES. United Press Association —Copyright. (Received April 30, 9.45 p.m.) LONDON, April 30. The House of Commons was crowded except the strangers’ gallery when Mr. Lloyd-George made his Budget speech. He spoke for four and .a-half hours. He claimed that the increased expenditure had been substantially incurred with, the unanimous assent of all parties. The growth of temperance had added considerably to the financial difficulties of the Government, which had to find £16,600,000, which would leave a surplus *of ' £488,000. He proposed to meet .the deficiency by reducing the contribution to the sinking fund by three millions, and by the income tax. That on earned incomes below £2OOO per annum would remain atninepence in the £, that on incomes above £2OOO 'and up to £3OOO would be a shilling, and that on incomes above £3OOO fourteen pence. A further super-tax of sixpence would be levied on incomes over £SOOO. The income tax changes would yield 8-£ millions. He expected that the super-tax in the following year would alone yield £2,300,000, based on the amount by which the income exceeded £3OOO. The sum of £285,000 would be raised by a revision of the estate duties, and £650,000 by an increase in stamp duties share transactions. Motor cars would be taxed from 40 shillings to 40 guineas according to horse-power, doctors’ cars paying half taxes. Motor cycles .would pay a tax of £l, and petrol of threepence a gallon, with a rebate of a half-penny to commercial cars. The motor taxes would yield £600,000, which would bo spent on the improvement of roads. The Budget proposes that the State shall take 20 per cent, of the unearned increment payable >at death and when land is sold, and a further half-penny in the £ on the capital value of undeveloped land and ungotten minerals, also a halfpenny in the £ on mining royalties, also ten per cent, reversion duty on the benefit accuriiig 'at the termination of leases. The land taxes would produce lialf-a-million. (Received April 30, 11.5 p.m.) LONDON, April 30.' Mr. Lloyd-George continued : An in - crease of eight-pence in the £ on manufactured tobacco would yield £1,900,000, an increase of 3s 9cl a gallon on spirits .would yield £1,600.000. The revision of liquor licenses -and a uniform percentage on annual value would produce £2,600,000. Mr. Lloycl-Georgc suggested that the whisky duties would justify an increase in the retail price of a half-penny a glass- The Government, Tie said, was considering a scheme of industrial insurance, compulsory, selfcontributory, and State-aided, wliilo preserving existing benefit societies. It was proposed next year to give pensions to workhouse septuagenarians'. THE NAVAL EXPENDITURE. “CANNOT BUILD- A NAVY AGAINST NIGHTMARES.” (Received April 30, 11.55 p.m.) LONDON, April 30. . Mr. Lloyd-George stated that the greater part of. the cost of Dreadnoughts would fall on next year. If the contingent Dreadnoughts were built, the naval bill would be gigantic. Nevertheless, the Government did not intend to avoid its obligations- I ail- , uro to do so was not Liberalism, but lunacy ; but it would be to act with the greatest unwisdom to throw' away eight millions. They could not build a nary against nightmares. The increased yield of. his new taxes would make tne necessary provision for Am navy;.next

year possible, without ’ resort to the vicious expedient of a loan. On incomes under £SOO there would he granted an 'abatement of £lO per child for children under 16 years of ago, belonging to the holders of the incomes. OPPOSITION CRITICISM, The budget May serve as AN ELECTORAL MANIFESTO. (Received May 1, 12.5 a.m.) LONDON, April 30. . Mr. Joseph Chamberlain said that the Budgot was so detailed that immediate oritiesm was impossible. -It might serve the purposes of an electoral manifesto, but it would take three Parliaments to pass the legislation necessary for its full achievement. Dearer bonds .and other securities transferable by delivery will be raised 10s to 20s per cent, of the nominal value, but bonds issued by colonial Governments remain at half-a,-er<Avn per cent. The “Times” opines that the stamp duties will operate very disadvantageousTy to bankers who will be paralysed in respect of raising colonial corporation loans. Such loans may be expected to be obtained by New' York bankers in future. SEVERAL NEW DUTIES AGREED TO.' LOBBY AND NEWSPAPER OPINION (Received May 1, 12.15 a.m.) LONDON, April 30. Mr. Redmond and the Irish members strongly opposed the taxation proposals, particularly the spirit duties. The House agreed to the spirits, tobacco, and petrol duties by 281 votes to 120. Lobby opinion emphasises that vast complexity characterises the Budget, wliicli is described as several Budgets in one. The Radicals believe that Mr. Lloyd-George is under-estimating the revenue derivable from new taxes, and that next Budget may show an unexpected surplus. The “Times” says that the deficit is to be covered at the cost of the wealthy and fairly well-to-do, and that the doctrine of social ransom has nevei been carried quite so far. The “Daily Mail” says that the proposed plundering of the middle classes shows that free trade finance lias hopelessly broken down. The “Standard”’ says that Ministers have’ flung aw'ay vast revenues from coal, sugar, and tea. and are now without courage to recant. The “Manchester Guardian” says that Mr. Lloyd-George has vindicated the elasticity of free trade finance. The “Chronicle” says that it was a bold Budget, but a bad speech which wearied the House of Commons, and that Mr. Lloyd-George was so anxious to sketch the future developments of Liberal policy that his Budget address became a political manifesto.

[Tim revenue for 1907-S was £156,538,000, or £5,960,000 more than that for 1908-9. The latter was estimated by Mr. Asquith to be £157,770,000. The actual sum realised is £150,578,000, or £7,192,000 less than the estimate. The expenditure for 1907-8 amounted to £151.812,000, so that Mr. Asquitli was able to announce a.surplus of £4,720,000. The estimated exuenditure for 1908-9 was £152,869,000, apd a surplus of £4,901,000 was anticipated. The actual expenditure is not given in the cablegrams published above, but as the revenue fell below the estimate by over seven millions there must bo a heavy deficit.]