§ The provision and organisation of welfare benefits is only one of the many tasks of the Government.
§ The whole cost of Government administration does indeed impose a formidable burden upon the taxpayer. Out of total spending of £105 billion in the current year, the Government's running costs amount to over £12 billion. The importance of keeping tight control of these costs is, therefore, manifest.
§ This is why we set ourselves the task of reducing the size of the Civil Service, from 732,000 in 1979 to 630,000 by April 1984. We are on target. Numbers are down already by 57,000. We now have the smallest Civil Service for 15 years.
§ Local authority manpower, on the other hand, has come down by only 3 per cent. since 1979, less than half as much as in the Civil Service. The importance of further progress there needs no underlining.
§ Efficient cost control means getting pay rates right, as well as controlling staff numbers. Later in the year the committee of inquiry under Sir John Megaw will be making recommendations about Civil Service pay arrangements for the future. In considering its report we shall aim to be fair to public servants, and to the taxpayer.