Mr. MURRAY MACDONALDasked the Chancellor of the Exchequer whether he can make any statement as to the method by which it is proposed to distribute, in the case of Scotland, the relief promised to local authorities to make up the deficiency in the whisky money; and, further, whether his attention has been called to the fact that the proportion of the relief promised to local authorities in Scotland in respect of the deficiency in the whisky money will not be more than sufficient to meet the deficiency in the Education Fund; and whether it is intended that Scotland's proportion of the Land Value Duties should be applied as a further contribution towards the cost of police pay and clothing?
§ Mr. HOBHOUSEAs my right hon. Friend stated in his Budget speech on the 30th ultimo, he proposes to allocate a certain sum to make good the deficiency in the yield of the Local Taxation (Customs and Excise Duties) due to the drop in the 362 consumption of spirits. The Scottish share of this sum will be paid over the Local Taxation (Scotland) Account. My right hon. Friend proposes to discuss with my right hon. Friend the Secretary for Scotland whether this additional Grant should be utilised entirely for education or in part allocated to other local services. As regards the last part of the question, I may refer my hon. Friend to the Budget speech, in which my right hon. Friend explained that as a temporary measure, owing to the delay in the passage of the Finance Act, he proposes in the present year to substitute the fixed Grant, to which I have already referred, for the moiety of the Land Value Duties assigned under that Act to local authorities.