The confirmation that Value Added Tax would be at a rate of ten per cent, increased pensions, and the imposition of taxes on the exploitation of Britain's undersea oil were among features announced by Britain's Chancellor of the Exchequer, Anthony Barber, in his budget speech on Tuesday (March 6).
GV Parliament Building and Big Ben. (2 shots)
CU Downing Street sign.
SV Mr. Barber coming out of house with the budget case.
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SV Mr. Barber entering car.
CU Newspaper headline "Barber's Box of Budget Surprises".
SCU Sign "Buy your furniture now 15% off before VAT.
GV The Inn on the Park Hotel, Hilton Hotel and Dorchester Hotel.(4 shots)
SV PAN Taxies along Park Lane. (2 shots)
GV Fating house with man serving good. (4 shots)
GV Cinemas (2 shots)
SV Woman serving man at theatre tickets booking agency. (2 shots)
SCU INT Barber shop
SV INT Children's clothing on display (2 shots)
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Background: The confirmation that Value Added Tax would be at a rate of ten per cent, increased pensions, and the imposition of taxes on the exploitation of Britain's undersea oil were among features announced by Britain's Chancellor of the Exchequer, Anthony Barber, in his budget speech on Tuesday (March 6).
A series of taxes now in force are to be replaced by the Common Market style Value Added Tax (VAT) on April 1. The rate would be 10 per cent - the lowest in Europe. An important concession was made on VAT when the Chancellor announced that children's clothes and shoes would be zero rated, that is, no tax would be paid. confectionary, ice cream, soft drinks and food would also be zero rate. Mr. Barber said the budget was based on the determination that statutory measure??? to control prices and incomes would succeed. Other features of the Budget: plans to allow workers to buy shares in the company for which they work at 70 per cent of ruling price; all profits from the exploitation of underset oil off British shores would be subject to British taxes.
Britain has a balance of payments surplus of 18 million sterling, (43 million US dollars) last year compared with a surplus of 1,051 million sterling (2,500 million US) in 1971. That was the balance sheet that Britain's Chancellor of the Exchequer presented in his annual budget statement to the House of Commons.
But Britain's economy was still expanding at about five per cent a year, despite the country's economic problems. He said his twin strategy was expansion and attack on inflation.
SYNOPSIS: Tuesday was Budget Day in Britain. The House of Commons was packed to here what Chancellor of the Exchequer, Mr. Anthony Barber had in store for the country. He confirmed to Parliament that Value Added Tax would be introduced on April first at the rate of tan per cent. He also announced that Britains balance of payment surplus had dropped dramatically from the levels of previous years.
But Britain's economy was still expanding at about five per cent a year, in spite of economic difficulties. He said his twin strategy was to encourage expansion and attack inflation. The budget was based on his determination that statutory measures to control prices and incomes would work.
These were some of the points the newspapers rushed to record.
A major change is the replacing of several taxes with a Common Market style Value Added Tax. The ten per cent rate of VAT is the lowest in Europe. These famous London hostels will be adding the tax to their bills.
The tax will be added to the price of most goods and services. The ten per cent will also go on the fares of these taxies in Park Lane.
The tax will make eating out more expensive. Even fish and chips will not escape. Only if they are eaten outside the shop will they be free of the tax.
Entertainment will certainly cost more. In spite of complaints that the tax would cause the closure of theatres the ten per cent goes on theatre and cinema tickets.
At the barber's shop - the price of a hair cut will even go up. But the Chancellor was forced to make one major concession to public opinion...Children's shoes and children's clothes will be zero rated.