THE CHIEF FEATURES OF THE BUDGET.
WE have dwelt on the special character of Mr. Baldwin's sound, wise, and optimistic Budget. Here we must set forth the main facts of his balance-sheet. In the year that has passed the actual revenue received was £914,012,000, while the expenditure was only £812,496,000. Therefore, there was a surplus of £101,516,000. The whole of this realized surplus has already gone automatically to the reduction of debt. For the current year, that is, from April 1st, 1923, to March 31st, 1924, Mr. Baldwin estimates that the revenue on the existing basis of taxation would produce £852,650,000. Further, he estimates that the expenditure in the current year, including £40,000,000 for the Sinking Fund, will be £816,616,000. This would give a surplus of £36,034,000. This means, of course, that if there were no reduction in taxes he would be raising £36,034,000 more in taxation than was required. Therefore, he has this amount out of which to make reductions.
The reductions proposed take the following form. The Income-tax is to be reduced from 5s. to 4s. 6d. in the L. The Corporation Profits Tax is to be reduced from Is. to 6d. in the in regard to profits arising after June 30th, 1923. Next, the taxation on beer is to be reduced in such a way as to enable a uniform reduction of Id. per pint to be made in the retail price. This reduction will begin at once. On cider and perry the whole duty (4d. per gallon) is to be repealed. On table waters, sweet or fermented, the duty is to be reduced from 4d. to 2d. per gallon.
Next comes a very considerable reduction in postal rates. Letters are to remain at lid., but the limit is to be 2 ozs. instead of 1 oz., and for every additional 2 ozs. id.—a very considerable boon to business people. Letters to British Possessions and to the United States, not exceeding 1 oz., are to cost 11d., and for every additional ounce the charge is to be ld. For foreign letters not exceeding 1 oz. the charge is to be 21d., and for every additional ounce lid. Though we regret to see that no special agricultural parcel post is provided for, it is pleasant to record that internal parcels not exceeding 2 lbs. are to cost 6d., not exceeding 5 lbs. 9d., not exceed- ing 8 lbs. ls., and not exceeding 11 lbs. Is. 3d. In the case of Inland printed papers, which now go for Id. up to 1 oz., the halfpenny limit is to be 2 ozs. The reduction of telephone rates is a step in the right direction, for the telephone has become an essential instrument of business. The annual rental installation charges are to be reduced by 10s., and there is to be a reduction also in the annual charge for extensions. The free radius outside the London area is to be extended from one mile to a mile and a-half from the exchange. The fee for local messages at public call offices is to be reduced from 8d. to 2d., and there are to be minor reductions in charges for short- distance trunk calls. The postal alterations will become effective on May 14th and the telephone reductions on July 1st.
We may next mention the very interesting and im- portant fact that a Select Committee is to be set up to consider the question of a Betting Tax in all its aspects. We are delighted to see the wide nature of this reference. It will clearly include the use of the totalizator, or Pari- Mutuel system. That is, no doubt, the best plan for keeping betting within bounds, and also for raising revenue. The proper way, we are convinced, to handle the betting question is to limit, or, if possible, abolish incitements to betting. But a mechanical contrivance like the totalizator does not incite and stimulate betting, though it allows a man to back his fancy. If while making the totalizator universal we could get £20,000,000 a year into the Exchequer, as is by no means impossible, and at the same time clear the racecourse of the emblazoned bookmaker and the newspapers of their betting adver- tisements, we should have done good business both for public morals and for the Exchequer.
To complete our summary of the chief points of the Budget, we may note that the provision for the Sinking Fund is to be £40,000,000 this year, £45,000,000 next year, and £50,000,000 thereafter. The effective reduction of debt during the past year has been £149,000,000. The debts owing to us by the Allies and the Dominions amount to £2,095,815,000. Surely the time has now come to deal with these debts and not to allow our debtors to indulge in false hopes in regard to their obligations. That is bad policy both for them and for us.
We cannot do better than end our comments on the Budget by quoting verbatim the admirable passage with which Mr. Baldwin concluded his speech :— " I have gone to the utmost limit of my power to relieve the taxpayer without impairing the credit of the nation. I believe that although we are still in the period of transition years we have already passed the peak load of taxation, and we may hope soon to have left behind us the calamitous years of trade depression. But our hopes may be frustrated by untoward events
on the Continent, and they may be shattered by untoward events at home. If the people of this country will only unite to take advantage of better trade I can face the financial future with confidence."
" That's the spirit ! " has been the immediate comment of the country.
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