Budgets 1907 - 1945
1907 Budget (HH Asquith)Introduced differential taxation (ie between earned and unearned income).
1908 Budget (HH Asquith)(Introduced by Asquith as Prime Minister following his recent elevation from the Chancellorship) A historic budget which introduced the first old age pensions. These were at a rate of 5 shillings (25p) per week for all those with an income of less than 10 shillings per week (apart from criminals, lunatics or those who had been paupers within the previous year). Married couples got 8 shillings and ninepence (44p).
1909 Budget (David Lloyd George)The 'People's Budget'. Introduced 'super-tax' at a rate of 6d (2.5p) in the pound on the amount by which incomes of £5,000 or more exceeded £3,000. The rejection by the House of Lords of these measures in the Finance Bill eventually led to the removal of the Lords' power of veto over 'money bills' under the Parliament Act of 1911. Lloyd George used these funds to pay for the new old age pensions and a naval re-armament programme.
1925 Budget (Winston Churchill)Restored the Gold Standard. This budget effectively revalued the pound and was blamed by many economists for Britain's relatively slow economic growth rate. The standard was abandoned again in 1931.
1926 Budget - (Winston Churchill)Introduced a tax on betting (which was widely evaded and abolished three years later).
1931 (September) Budget (Philip Snowden)The first budget of the new National Government. A drastic budget in which taxes were raised and unemployment benefits and the salaries of government employees were reduced. The latter measure led to the Invergordon Naval mutiny, and demonstrations by teachers and others. The formation of the National government and these measures were designed to end the financial crisis and keep the pound sterling on the gold standard; however a week or so later Britain left the gold standard.
1934 Budget (Neville Chamberlain)Began to restore the budget cuts made in 1931.
1935 Budget (Neville Chamberlain)Completes the process of restoring the cuts made in 1931.
1936 Budget (Neville Chamberlain)Chamberlain cut income tax by 3d. A Tribunal of Inquiry found the Dominions Secretary, JH ('Jimmy') Thomas, guilty of a budget leak. Thomas consequently resigned from the government and the House of Commons.
1941 Budget (Sir Kingsley Wood)The first budget to be framed on 'Keynesian' lines, ie planned for a deficit. It also raised income tax to 10 shillings (50p) in the pound and increased the numbers of working class people paying income tax.