• Short Summary

    British Chancellor of the Exchequer (Finance Minister) Denis Healey presented his 1975 Spring Budget to Parliament on Tuesday (15 April).

  • Description

    British Chancellor of the Exchequer (Finance Minister) Denis Healey presented his 1975 Spring Budget to Parliament on Tuesday (15 April).

    In a broadcast to the nation on Tuesday evening he called it a "rough," tough Budget".

    Britons had been expecting extra taxes on luxury goods--and they were duly made.....from cigarettes and drinks to fur coats and jewellery....in an effort to cut a yawning deficit in the nation's treasury accounts.

    He said that without new taxes the gap between government spending and government revenue in the coming year was threatening to reach an enormous 9,000 million pounds sterling....roughly a third of all government expenditure.

    Mr. Healey said Britain's inflation was threatening to leave the country sharply worse off then other wester nations. He blamed the situation on largely excessive wage increases....he said some pay settlements had far outstripped government guidelines.

    The Chancellor announced a rise in general income tax: the basic rate goes up from 33 per cent to 35 per cent.

    One of the sharpest taxation increases was in the rate of value Added Tax (VAT), which applies to most gods and services. The standard VAT rate of eight per cent was raised to 25 per cent on all items considered in the "luxury class". This includes radio and television sets, recording equipment, boats, aircraft, caravans, cameras, binoculars, furs and jewellery.

    Drinkers and smokers also suffered heavily.....with an increase of seven pence on a standard packet of cigarettes (bringing the price up to about 40 pence a packet) and 64 pence on a bottle of spirits (raising the supermarket price of whisky to around 3 pounds 20 pence a bottle).

    This was Mr. Healey's fourth Budget in just over a year. He pre enter it against a sombre background which includes inflate on of around 20 per cent annually, unemployment of more than 8 0,000 and a severe balance-of-payments-deficit.

  • Tags

  • Data

    Film ID:
    VLVAA65CQJA8LKD81IJVPNZ01TUQZ
    Media URN:
    VLVAA65CQJA8LKD81IJVPNZ01TUQZ
    Group:
    Reuters - Source to be Verified
    Archive:
    Reuters
    Issue Date:
    15/04/1975
    Sound:
    Unknown
    HD Format:
    Available on request
    Stock:
    Colour
    Duration:
    00:01:43:00
    Time in/Out:
    /
    Canister:
    N/A

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