HC Deb 25 April 1944 vol 399 cc627-8
55. Sir Waldron Smithers

asked the Chancellor of the Exchequer, with regard to Acts of Parliament dealing with public and social services, approximately what percentage of their cost falls on the taxpayer and ratepayer, respectively.

Sir J. Anderson

Particulars of the receipts from which expenditure on the public social services is met have not been collected since the war, and I fear that staff is not now available for this purpose. The latest figures, published in November, 1938, are those relating to the financial year 1936, and I am circulating with the OFFICIAL REPORT a table showing the percentages of the receipts in that year drawn from various sources.

Sir W. Smithers

Might I ask, in view of the fact that this House, by enactments, is putting increasing burdens on the ratepayers, if the right hon. Gentleman will set up a Commission of Inquiry to consider whether the raising of money by rates and by taxes could not be more, equitably distributed?

Sir J. Anderson

I think that hardly arises on the Question.

Mr. Rhys Davies

When preparing these statistics, promised in his reply, will the right hon. Gentleman take great care that in the total amounts paid on pensions, unemployment and health insurance, account is taken of the contributions from employers and employed, and that these are not mixed up with State grants?

Sir J. Anderson

The statement that is being prepared draws that distinction quite clearly.

Following is the statement:

The following table shows the sources of the receipts from which expenditure on the public social services was met in 1936, and the amount and percentage of the receipts drawn from the various sources in that year.

Source align="center">Amount align="center">Percentage
£ millions
Parliamentary Votes 232 46
Local Rates and Block Grants* 123 24
Contributions, fees, interest, rents, etc. 449 30
Total 504 100
* The block grants are given as a contribution to local revenues and cannot be apportioned among the various services of which the cost is met from local revenues.
57. Sir W. Smithers

asked the Chancellor of the Exchequer what is the policy of the Government as to the percentage of the national income it is practicable and desirable to expend on public and social services.

Sir J. Anderson

As I informed my hon. Friend on 23rd March, I do not think the subject of his question lends itself readily to arithmetical rules.

Mr. A. Edwards

Will the Chancellor not agree that money spent on social services passes through trade and comes back into the national income?