NEWS OF THE WEEK
MB. CHAMBERLAIN'S latest Budget (discussed at greater length in our City columns) has brought un- pleasant surprises, but it is an honest Budget, and the policy of pay-as-you-go is in all ordinary circumstances sound. Last year the revenue increased, in spite of tax re- missions, by £36,000,000 and, although expenditure was largely in excess of estimates, gave the Chancellor a surplus of £8,000,000, after £12,500,000 had been applied to debt redemption. Mr. Chamberlain again expects a large increase in revenue from existing taxation, £13,500,000 from Income Tax and Surtax and £7,400,000 from customs. In .spite of this, he has to find yet another £21,300,000, which is to come from four sources. The standard rate of Income Tax is raised by 3d. to 4s. 9d., twopence a pound is to be added to the duty on tea, £6,500,000 comes by stopping tax-evasion, and the Road Fund is to be raided- of the L5,250,000 which still stands to its credit. There is obvious objection to that if the Fund is still to be regarded as theoretically earmarked for road-improvement, and it would be better to merge it in the general revenue than preserve it merely as a perpetual. temptation to Chancellors. Against the blow to taxpayers and consumers there are to be set only certain tax reliefs to families and married persons which will cost the Exchequer 1.3,000,000, but will actually more than counterbalance the increase in Income Tax for most married persons.
