§ 46. Major BREESEasked the Prime Minister if, in view of the increased burden upon local rates of the cost of administrative services due to the large advance in wages and clerical expenses, in respect, of which grants in aid are made by the State to local authorities, and of the cost of additional services to be administered locally under recent legislation, he will state whether it is proposed that such grants should be increased in proportion to the higher cost involved?
§ Mr. BALDWINThe majority of the Exchequer grants to local authorities are 1524 based upon the whole cost of the service in respect of which they are given, and in such cases an increase in the cost of the service of course results in a corresponding increase in the grant. If it is intended to suggest that grants should now be calculated on higher proportions of expenditure because of the general rise in rates, I would point out that taxation has increased to a far greater extent