Evening star., 1949-04-10
Brituin's Misery Budget

One Of the notable aspects OF Britain
Labor government is the conservatism OF
Its financial policy. Although committed
to a radical program of socialization, in
cluding the Matchmaking of much OF
Britain's economic structure and vast
extension of social services, 1t Is rigidly
orthodox in It's fiscal bookkeeping. Current
expenditure must be paid for from revenue
The public debt must be held down or
reduced. Infiationary trends must be
curbed by deterrent taxation. Finally, in
creased productivity Is recognized as the
basic factor in national recovery and
solvency.
That is the realistic doctrine preached
by Sir Stafford Cripps, Chancellor of the
Exchequer, who corresponds to our Sec
retary of the Treasury, In his budget
report to Parliament. Despite a general
improvement In Britains economic posi-
ton during the past year and record
fiscal surplus, Sir Stafford wants no let
up in economic austerity. As he sees it,
taxation should be slightly increased to
meet expanding costs of the new social
services, coupled with the probability of
higher armament expenditures. And GER
tain fiscal economies should be practiced
even if this means higher living costs for
the general public. He demands halt
in government subsidies for basic foods,
declaring that any further rises in food
costs must be added to the price. Accord
ingly, price rises are decreed for meat,
cheese and butter. The one concession in
his Spartan recipe is reduction of one
penny Zone and two thirds cents in the
price of pint of beer, the British work.
ingman's indispensable brew.
Sir Staffords pronouncement Is being
greeted with mixed emotions. 1t is nota-
BILE that his sharpest critics are found in
the left wing of his own Labor Party and
still more leftish groups. But other circles
generally applaud his realism, honesty and
political courage. That courage-which
must be credited also TO the majorityq of
fact that his so-called misery budget was
made public just the day before London's
municipal elections. The budgets auster-
ity undoubtedly Is at least partly respon-
sible for the significant Conservative vic
tory in those elections, with many former
Labor follower casting vote of resentment
against the Cripps recipe. '"
In drafting his budget report, however,
Sir Stafford deliberately refused to follow
a popular vote-winning course 1--WE have
to face our economic and financial prob
lens with realism" he declared land must
not allow ourselves to be carried away by
the quite understandable desire to court
electoral popularity : We cannot eat our
cake and have it." The social services,
he continued, are "a permanent and con-
tinuing obligation whose costs are con-
stantly increasing. The nation has chosen
to have its benefits in the form of such
services, and 1t cannot have both those
and reduced taxation" Finally, he warned
that not much money could be got by
taxing the rich to assist the poor, but that
further increases in social services must
be paid for by increasing national pro-
ductivity and wealth.
All this constitutes salutary presenta-
ton of economic realities which should
enhance the favorable overseas opinion of
Britain's financial soundness, even though
1t may weaken the Labor Partys popularity
and political strength at home.