§ 33. Sir W. DAVISONasked the Prime Minister whether, in view of the serious state of the national finances, the Government will issue a circular letter to all local authorities throughout the country on the lines of the Cabinet Minute issued to Government Departments in December last, urging that no new financial obligations should be incurred except in matters or urgent necessity, and that the strictest economy should be observed in the administration of all services already in operation?
§ Sir A. MONDI am sending to my hon. Friend a copy of a circular letter issued to local authorities in February last. He will see that the circular is on the lines suggested by him, and I will consider whether any further action is necessary.
§ Sir W. DAVISONIs the right hon. Gentleman aware of any result in the way of reduction of expenditure on the part of local authorities by reason of the circulation of this circular?
§ Mr. MILLSCan the right hon. Gentleman state the experience of any local authority that is doing half as much work as it did before the War, and yet its rates are increasing?
§ Sir A. MONDI cannot answer that without considerable investigation. I have heard of instances of economies being effected as a result of the circular. If the hon. Member will put down another question, I might be able to give him further information.
§ Lieut.-Colonel Sir S. HOAREWould the right hon. Gentleman make a specific proposal to the local authorities for a reduction of 20 per cent. in their expenditure, upon the lines of the Chancellor of the Exchequer's circular to the Government Departments?
Mr. J. JONESWill the right hon. Gentleman take into consideration the fact that the local authorities are faced with a great deal of unemployment? How can they reduce expenditure if they 36 have to face demands from thousands of people for employment in their locality?
§ Sir A. MONDAfter all, I am not responsible for the finance of local authorities. The local authorities are responsible to the ratepayers. It is not for me to lay down any fixed figure.