§ 28. Captain BOURNEasked the President of the Board of Education whether his announcement to local education authorities that Circular 1371 should now be regarded as withdrawn affects the policy of the Government in regard to the institution of a system of block grants?
§ Lord E. PERCYNo, Sir. The Circular proposed to fix block grants for 1926–27, leaving open for consideration the amount of the block grants for subsequent years. When I met representatives of local authorities last December, I told them that if they could effect a sufficient reduction in their estimates for 1926–27, I would consider postponing the introduction of a block grant system for a year, so as to allow time for consultation. Authorities have now revised their estimates on the lines suggested 'by the Board, and this revision, with the further reductions in expenditure which I believe can be made during the year, has enabled me to bring the Board's estimates within what I consider, in the circumstances, to he a reasonable figure. I have, therefore, carried out my part of the understanding reached in December by continuing the present grant system temporarily for the coming financial year, and the Circular thus becomes inoperative. Consultations are proceeding with local authorities in regard to a block grant system for subsequent years, and the Government's policy in this matter remains unchanged.
§ Mr. HARRISAre we to understand that the present system is to he retained for 12 months, and that after that the right hon. Gentleman is using the block grant system?
§ Lord E. PERCYThat is my hope.