• Short Summary

    BRITAIN'S CHANCELLOR OF THE EXCHEQUER, MR JAMES CALLAGHAN, WILL PRESENT THE GOVERNMENT'S BUDGET - THE FINANCE BILL - IN PARLIAMENT ON TUESDAY.

  • Description

    BRITAIN'S CHANCELLOR OF THE EXCHEQUER, MR JAMES CALLAGHAN, WILL PRESENT THE GOVERNMENT'S BUDGET - THE FINANCE BILL - IN PARLIAMENT ON TUESDAY.

    MR CALLAGHAN FACES TWO MAIN FACTS WHEN DRAWING UP HIS SUGGESTIONS FROM WHICH THE GOVERNMENT'S INCOME WILL BE DERIVED DURING THE COMING YEAR.THESE ARE: THE BALANCE OF PAYMENTS SITUATION IN POOR RESULTING IN GENERAL INTERNATIONAL LACK OF CONFIDENCE IN THE POUND; AND, MOST ASPECTS OF THE COUNTRY'S ECONOMY IS WORKING AT FULL PRESSURE.

    AS A CONSEQUENCE OF THE THESE FACTORS THERE IS EVERY INDICATION THAT TAXATION WILL RISE TO REDUCE DEMAND FOR GOODS AND RAISE REVENUE TO PAY THE GBP745 MILLION DEFICIT AT THE TREASURY.

    IT IS EXPECTED THAT THE CHANCELLOR WILL PROPOSE INCREASES IN THE DUTIES ON WINE, SPIRITS, BEER AND TOBACCO.SUCH INCREASES TOGETHER WITH THE ALREADY ANNOUNCED INCREASE OF 6D ON THE STANDARD RATE ON INCOME TAX AND INCREASED NATIONAL INSURANCE PREMIUMS ARE REGARDED AS SUFFICIENT TO COMBAT INFLATION.PURCHASE TAX MIGHT WELL RISE FROM 25 TO 30 PER CENT.

    A NEW TYPE OF TAX HAS BEEN MENTIONED WHICH WOULD COVER BUSINESSES WHICH PROVIDE A SERVICE RATHER THAN A PRODUCT.HAIRDRESSING SALONS AND RESTAURANTS, FOR EXAMPLE, WOULD DEFLECT REASONABLY CONSIDERABLE FUNDS INTO GOVERNMENT COFFERS.

    TAXATION ON CONSUMER GOODS WOULD REDUCE DEMAND AT HOME AND HELP RAISE MUCH-NEED EXPORTS.WITH A VERY SMALL UNEMPLOYMENT FIGURE (1.4 OF WORKING POPULATION) THE OPPORTUNITY TO INCREASE EXPORTS IS LIMITED: HENCE THE NEED TO CUT HOME CONSUMPTION.

    MR CALLAGHAN HAS ANOTHER TASK IN THIS BUDGET.HE MUST MAKE CLEAR TO OVERSEAS FINANCIERS AND OTHER GOVERNMENTS THAT BRITAIN INTENDS TO BALANCE FOREIGN PAYMENTS.SOME CONVINCING DEMONSTRATION OF THE BRITISH GOVERNMENT'S READINESS TO CURB THE GROWTH OF PUBLIC EXPENDITURE IS NEEDED: SUCH AS THE CANCELLATION OF THE TSR 2.

    THE CHANCELLOR HAS HAD RECOMMENDED TO HIM THE U.S.METHODS OF CUTTING PAYMENTS DEFICITS: BY REDUCING MILITARY EXPENDITURE ABROAD AND A CHANGE IN CONTROLLING THE OUTFLOW OF NEW CAPITAL.

    A NEW SIMPLIFIED SYSTEM OR TAXATION WOULD ALSO HELP THE ECONOMY.CAPITAL GAINS TAX CHARGED AT A NEW FLAT RATE WOULD STIMULATE INVESTMENTS - MUCH DESIRED BY ANY GOVERNMENT.

    SPECIFIC PROPOSALS BY THE CHANCELLOR TO RAISE FUNDS MIGHT WELL BE OPPOSED BY THE CONSERVATIVE OPPOSITION.HOWEVER, SUPPORT FROM THIS SIDE OF THE HOUSE OF COMMONS IS CERTAIN FOR ANY GOVERNMENT MEASURES DESIGNED TO REINFORCE CONFIDENCE IN THE STERLING.

  • Tags

  • Data

    Film ID:
    VLVAB7WB1JJSLC6C7J4Z4D7M26TZH
    Media URN:
    VLVAB7WB1JJSLC6C7J4Z4D7M26TZH
    Group:
    Reuters - Including Visnews
    Archive:
    Reuters
    Issue Date:
    03/04/1965
    Sound:
    Unknown
    HD Format:
    Available on request
    Stock:
    Black & White
    Duration:
    00:02:54:00
    Time in/Out:
    /
    Canister:
    N/A

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