HC Deb 10 September 1931 vol 256 cc301-2

I said, it will be remembered, that there are two ways or a combination of two ways of balancing the Budget, one by economies and one by increased taxation—or by economies and increased taxation. Now faced with a deficit this year of £74,000,000 and a probable deficit next year of £170,000,000, it is clear, as I warned the House of Commons last February, that drastic and disagreeable measures will have to be taken. Large economies are essential and so are heavy increases of taxation. The details of the measures of economy which the Government will, to-morrow, submit to the House of Commons will be found in a White Paper which will be available in the Vote Office when I sit down. Of course, the usual White Paper appertaining to my Budget statement will also be available. I shall not, therefore, this afternoon trespass upon the Debate which will naturally take place to-morrow, to enter into any details as to the economies which are proposed. It may almost be sufficient if I say that nine-tenths of the items under which economies are proposed were adopted and approved by the late Government. [An Hoer. MEMBER: "Not by the Labour party!"] Hon. Members will find when they see the White Paper that there are considerable economics in the Defence Services, in the Civil Votes, and in fact economies over the whole field of Government expenditure—upon unemployment insurance and upon the Road Fund—and these savings, altogether, will amount to £70,000,000. That is, the total savings, as I have indicated, will amount to £70,000,000 next year. The measures proposed will come into operation on 1st. October next wherever possible, and the saving through these economies on this year's Budget is estimated to be £22,000,000 towards the deficit of £74,000,000.

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