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...School Belt. Tense with anxiety, the British Treasury's gloomy office in Great George Street tried to stop the "run on the bank." Chancellor of the Exchequer Hugh Dalton, whose toothy grin is almost inextractable, predicted that the run would slow down in August. He was wrong again. Prime Minister Attlee called a Cabinet meeting...

Author: /time Magazine | Title: ECONOMICS: Tough Years Ahead | 9/1/1947 | See Source »

...anybody's guess whether Eton could keep its course steady in its sixth century as it had in its first five. True, two members of the Labor Cabinet (Chancellor of the Exchequer Hugh Dalton, Food Minister John Strachey) wear the black-&-blue old school tie, and are proud of it. So do six Labor and 57 other M.P.s, such left-wing literati as Cyril Connolly and George Orwell. But many a Briton was finding it hard last week to visualize Eton in a socialist future...

Author: /time Magazine | Title: Education: Old Schools | 6/16/1947 | See Source »

Robin Hood. Dalton gave the lowest wage group the solace of a cut in income taxes which brought them back to about the 1940 level. The basic rate of nine shillings to the pound (45%) remained. But by lifting the basic exemptions and increasing allowances for dependents, the budget took income tax entirely off about 750,000 low-income Britons. Under the new schedule, a British couple with two children will pay no tax unless they earn more than $28 a week, and they would not pay the 45% rate unless they earned more than $40 a week. The change...

Author: /time Magazine | Title: Foreign News: Circumstance | 4/28/1947 | See Source »

...other respects Dalton's budget followed Labor's Robin Hood thesis of taking from the rich to give to the poor. Taxes on distributed profits (dividends) were upped from 5% to 12½% (a few fortunate Britons breathed easier; they had expected a slashing 20% tax). Inheritance duties were almost doubled. Sales taxes were cut on items including boxing gloves, chamber pots and toothpicks. But a whopping 66⅓% purchase tax went onto heating and cooking appliances...

Author: /time Magazine | Title: Foreign News: Circumstance | 4/28/1947 | See Source »

Smelling Salts. Dalton was proud of his surplus. It was not an actual one, but was represented by a windfall of ?292,000,000, largely from unspent wartime budgets. Surplus or not, there was no budget provision for retirement of Britain's $102,448,000,000 debt. But Dalton crowed: "I trust this [the surplus] will act as smelling salts under the noses of some of those . . . who have recently been showing signs of despondency over our financial future...

Author: /time Magazine | Title: Foreign News: Circumstance | 4/28/1947 | See Source »

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