§ 59. Mr. KIRKWOODasked the Secretary of State for Scotland if he has considered the request made to him for an inquiry into the finances of Scottish municipalities because of the excessive rating which prevails in industrial areas; what action does he propose to take regarding this matter; and will he state the total loss to local authorities in Scotland by the reduction of State grants for social services, including education?
§ The SECRETARY of STATE for SCOTLAND (Major Sir Archibald Sinclair)In reply to the first two parts of the question, earnest consideration is being given by the Government to the problems of local as well as of national expenditure with a view to the reduction of the burdens of rating and taxation. As regards the last part of the question the reduction in grants in respect of education will result in a total loss to local authorities in Scotland in the current local financial year of approximately £864,000, but this reduction has been accompanied by a reduction in the expenditure of local authorities. No reduction in grants for other social services has been made.
§ Mr. KIRKWOODIs the right hon. Gentleman not aware of the fact that, owing to the great number who are being cut off as a result of the need test having to go to the public assistance committees, a number of the municipalities, particularly in the West of Scotland, will be faced with bankruptcy?
§ Sir A. SINCLAIRAll those matters will be borne in mind in the general consideration of the problem.