5 . ▁ ▁Emer gency ▁measures ▁In ▁an ▁effort ▁to ▁balance ▁the ▁budget ▁and ▁restore ▁confidence ▁in ▁the ▁p ound , ▁on ▁ 1 0 ▁September ▁ 1 9 3 1 ▁with ▁Philip ▁Snow den ▁still ▁as ▁Chan cell or , ▁the ▁new ▁national ▁government ▁issued ▁an ▁emer gency ▁budget , ▁which ▁immediately ▁instit uted ▁a ▁round ▁of ▁cut s ▁in ▁public ▁sp ending ▁and ▁w ages . ▁Public ▁sector ▁w ages ▁and ▁un emp loyment ▁pay ▁were ▁cut ▁by ▁ 1 0 %, ▁and ▁income ▁tax ▁was ▁raised ▁from ▁ 4 s ▁ 6 d ▁to ▁ 5 s ▁on ▁the ▁p ound ▁( from ▁ 2 2 . 5 % ▁to ▁ 2 5 %). ▁The ▁pay ▁cut s ▁did ▁not ▁go ▁down ▁well , ▁however , ▁and ▁resulted ▁in ▁a ▁non - vi ol ent ▁" mut iny " ▁in ▁the ▁Royal ▁Navy ▁protest ing ▁pay ▁cut . ▁ ▁These ▁measures ▁were ▁def lation ary ▁and ▁merely ▁reduced ▁purch asing ▁power ▁in ▁the ▁economy , ▁w ors ening ▁the ▁situation , ▁and ▁by ▁the ▁end ▁of ▁ 1 9 3 1 ▁un emp loyment ▁had ▁reached ▁nearly ▁ 3 ▁million . ▁The ▁measures ▁were ▁also ▁un success ful ▁at ▁def ending ▁the ▁gold ▁standard , ▁which ▁the ▁National ▁Government ▁had ▁ost ens ibly ▁been ▁created ▁to ▁defend . ▁ ▁The ▁flight ▁of ▁gold ▁continued , ▁however , ▁and ▁the ▁Tre as ury ▁finally ▁was ▁forced ▁to ▁abandon ▁the ▁gold ▁standard ▁in ▁September ▁ 1 9 3 1 . ▁ ▁Until