HC Deb 23 June 1958 vol 590 cc15-6
30. Mr. Blenkinsop

asked the Minister of Health what financial assistance is to be given to local authorities to enable them to establish and develop services for the care and welfare of such of the mentally sick and defective patients as can now be discharged from hospitals and institutions.

Mr. Walker-Smith

Expenditure by local authorities on the development of these services already qualifies for specific Exchequer grant and, on the assumption that the Local Government Bill is passed in substantially its present form, will be taken into consideration in the proposed new general grant. I have also informed local authority representatives that I propose to assist authorities, where this is possible, by letting them have, for a purely nominal consideration, suitable small hospital buildings that can be spared.

Mr. Blenkinsop

Is the right hon. and learned Gentleman not aware that the administrative changes that he has already proposed for mental hospitals will be rendered utterly nugatory unless there is fresh provision of finance? Does not agree that every local authority expects to hear from him that steps have been made available to enable them to take the weight of the cases which are now in their mental hospitals?

Mr. Walker-Smith

The 50 per cent. grant of expenditure on local authority services and the small capital subsidy will both be taken into the general grant under the new legislation. As to finance, where I can help is to recommend an issue of loan sanction for capital work in the mental health service at a higher level than in recent years. That I propose to do in the immediate future.

Mr. Kershaw

What consideration has my right hon. and learned Friend given to the provision of capital for building? Is not the building problem one of the main difficulties of local authorities in looking after people who may be discharged from mental institutions in their areas?

Mr. Walker-Smith

Yes. The small capital subsidy for old people's homes to which I referred will go into the general grant. One of the main difficulties in regard to finance has been in relation to loan sanction, and there, as I have said, I expect to be able to render early help.

Mr. Blenkinsop

Did not the Royal Commission clearly state that in its view extra finance must be made available, particularly in view of the Government's block grants taking over the old percentage grants? Is it not a smack in the eye to local authorities who sincerely want to take over the burden that the hospitals have been bearing in the past?

Mr. Walker-Smith

The Royal Commission said that it had had in mind recommending an Exchequer grant of up to 75 per cent. for a limited fixed period but it recognised at the same time that the introduction of the general grant might make that recommendation inappropriate.