South Yorkshire Times April 29th 1944
Finance and the Future
Sir John Anderson’s Budget withheld the last straw. Our national economy is now so finely adjusted that there is little, if any, scope for further taxation and the Chancellor has wisely decided to let well alone. Despite the wisdom of this decision not many had expected the taxpayer to be let off without some additional impost. The Budget has set a precedent notable in modern times. Generally, this pronouncement on our financial destiny has included small concessions offset by large impositions. Now it seems that something like equilibrium has been obtained and if we regret that Sir John’s concessions were only potential we rejoice greatly that nothing has been added to our tax commitments. Though unusual, and perhaps unlooked for, this moderation was by no means the only notable feature of the Budget speech. The true importance of the speech lay not so much in the immediate effects of the Chancellor’s forbearance as in his firm and forthright exposition of the part the fiscal policy will play in post-war rehabilitation of Britain. It was encouraging to note his recognition of the necessity for regular and methodical review of the income and expenditure not only of the Exchequer, but of the country as a whole, in order to ensure the full employment which is the keystone of all future social security. He rightly laid special emphasis on the importance of recovery of British export trade, and indicated in several ways how the Government would do whatever lay in its power to bring this about.
The Chancellor very clearly outlined the implications of failure to re-establish our export trade, pointing out that it must lead to drastic curtailment of imports such as might not only threaten our standard of life, but might also imperil prospects of full employment. He succinctly reminded the House that the Government cannot make an export trade. That must be the task of the country’s manufacturers, merchants and workpeople, with the Government providing the requisite conditions by means of its foreign policy and by exercising a guiding influence in the internal handling of material and labour. Sir John introduced a salutary reminder about the world-wide reputation of British quality and workmanship and suggested that we should only hold our own and retain our markets if we “keep our light shining a little ahead of the rest.” This is a heritage of British commerce and industry which we must most certainly cherish. By a series of stimulating promises the Chancellor has given new hope to our industrial planners and has infused fresh vigour into the British productive machine. He promised an excess profits refund of 20 per cent. for rehabilitation and reconstruction as post-war concession; reliefs in excess profits to small businesses; a special allowance to industry of 20 per cent for new machinery and new buildings, shipping and agriculture to benefit along with manufacturing industry; and a most valuable allowance to encourage research.
His reference to the hitherto closely pegged cost of living standard, which may have to be allowed to rise a little, was not palatable even with the ceiling figure raised from 30 to 35 per cent.
It may, however prove a word in season. Wages cannot soar indefinitely ahead of prices without relation to output.
That is an axiom which we must keep before us in post war period even more firmly than we do now.