Eighty years ago, war reaches deep into British pocket as the Fascist/Communist bromance moves onwards
The first wartime Budget by the Chancellor of the Exchequer Sir John Simon hammered home to the British people that they were facing the full horrors of war. The basic rate of income tax surged from 5/6 in the £ (27%) to 7/6 (37%). This was the most notable of an increase in practically every form of taxation, including death duties. There was dark talk of introducing a capital levy, hitherto unknown in Britain. The increases would bring in an extra £107m that year and £227m in a full year. Defence spending of £630m at the time of the last Budget in April had reached £730m in July before the war had even broken out. Britain was in for a lean time fiscally but Sir John could offer the public the consolation that at least the pound sterling retained its value on the international currency markets whilst the Reichsmark was worthless. What the British public was not told was that twenty German aircraft had bombed the Royal Navy ships at anchor in Scapa Flow in the Orkneys...