LOCAL GOVERNMENT (FINANCIAL PROVISIONS) BILL. (Hansard, 29 January 1946)

§ LORD WALKDEN

My Lords, In moving the Second Reading of this little Bill I would like to point out that the object of it is to authorize an additional Exchequer grant in aid of local authorities for three financial years. The first year is the current year, 1945–46, and in that year provision is being made for £10,000,000 to be advanced. In the next year, 1946–47, it will be £11,000,000, and in the third year, 1947–48, it will rise to £12,000,000, making £33,000,000 in all in aid of the work of our local authorities. 46 The principles and plan of this Bill were agreed upon by the National Government during the Coalition period, and it is, therefore, another case of continuity of policy. When the Bill was in another place it was given a Second Reading without a Division, and it was highly commended by the former Minister of Health, Mr. Willink, speaking on behalf of the Conservative Party. So I have no doubt that your Lordships will give the measure your blessing when I have done my best to explain its provisions.

It is really an interim measure intended to carry forward the financial arrangements, for a period of not more than three years, by which time it is hoped it may be possible to make a grand survey of the whole of the relationships between the Treasury and the local governing authorities. At present, those relationships are a little strained and unusual, and, in some cases, rather unhappy. But we cannot very well make a large-scale revision at this stage, because so many changes are taking place and are likely to take place. For example, local affairs are very unsettled owing to movements of the population. They are not yet stabilized. Industries, too, are moving from one area to another and a lot of mutation is taking place in that regard. Then, again, in many instances, under another Act of Parliament boundaries are being surveyed and altered. In the case of a number of boroughs they are being extended further into the county. All such matters are in a state of fluidity.

Moreover, we are looking forward to some new large-scale legislation along the lines of what are popularly known as the Beveridge reforms. They will affect local government in many ways, particularly financial ways, as well as the finances of the country as a whole. The new Education Act of 1944 has thrown additional burdens upon the local authorities, and there may be further changes that will bring further burdens upon these authorities, possibly in the form of orders or requests or legislation requiring them to provide for more and better lighting of streets and roads. More expense may be involved, also, in dealing with accidents on the roads, for the death roll is so terrible that further stops must be taken to minimize them. Then widening and other improvements to roads will have to be thought of, and I hope that there will 47 be provision for more car parks. All that falls within the ambit of the local authorities and will add to their financial burdens. They also have town and country planning to provide for, and matters of that kind.

But, on the other hand, some changes will give them substantial easement of a financial character. The new Insurance Bill which is now moving in another place will, I believe, relieve them entirely of Poor Law charges, and it is estimated that the value of that relief is in the neighbourhood of £30,000,000 a year—which is a very appreciable amount. Next week, we may ask your Lordships to consider a new Trunk Roads Bill, authorizing the taking over of a lot of important roads by the Minister of Transport, thus relieving local authorities of responsibility and expense in the maintenance of those roads. Further, as your Lordships know, those authorities have spent a good deal of money on hospitals, maternity and child welfare. They may be eased, in this respect, by the new Health Services Bill. So you see that on both hands great changes are taking place, and we cannot make permanent financial arrangements between the Treasury and the local authorities at the present moment.

This Bill is brought in to give assistance now especially where it is most needed. It also virtually arranges for the apportionment of sums of money approximating to what local authorities might have received under the quinquennial revisions of the regular block grant which is authorized under the Act of 1929. Such quinquennial revision would have started from April, 1942, but it was found in 1941 that the work could not be undertaken then, and, by general agreement, it was postponed by an Act carried in 1941 which authorized the suspension of the quinquennial revision. Time present total amount of the ordinary block grant for all local authorities involved amounts to about £46,000,000 a year. If it had been revised—as provided for before the war—as from April, 1942, to April, 1947, it might have been increased by about £7,000,000 a year. That is the estimate of what might have happened had there been a revision.

The local authorities postponed many improvements which they had in hand, but, now the war is over both in Europe 48 and the Far East, they want to proceed to carry out those improvements, and they need the money to enable them to do so. I might say here that throughout the war the local authorities have been most economical—as, indeed, they always are—in the administration of their own affairs, and they have taken great care of such moneys as they were able to conserve through, for example, not having to light the streets during the black-out. They have been very helpful over extra wartime work which has been put upon them from Westminster. Therefore, I am sure your Lordships will be disposed to help them now when their turn has come to ask for help in carrying out their own work.

I would point out that this Bill does not make any provision in the way of general aid for the loss of rateable value through war damage and movements of population. There have, of course, been great movements from various areas owing to evacuation and the people have not always returned. There have also been movements of industries, and the rateable value, the yield of the rates in such areas, has of course diminished. No grant is made under this Bill in respect of loss of rateable value through war damage, although special grants have been made and the Minister of Health is prepared to give further consideration to appeals from local authorities in that matter. But each case has to be taken separately on its own merits because there is no general rule you can apply to the whole lot. I believe that £15,000,000 have been granted already in aid of war damage in circumstances such as I have described.

The new grants to be provided under this Bill will be distributed with a bias in favour of the poorer authorities who need most help. I am sure that your Lordships would desire that that should be the case. The arrangements under which the differentiations are made is provided through a complicated but fair formula under which these variations take place. In the case of boroughs, the Merthyr Tydvil rate was as high as 29s. in the pound. They will get a grant equal to a 2s. 9d. rate out of this new money. In the case of West Ham, where the rate is 21s. 6d. in the pound, they will get out of this new money something equal to 1s 9d. in the pound, whereas in the case 49 of Blackpool which is a flourishing seaside resort and where the rates are only 11s. in the pound, they will only get 1½d. Bournemouth, more prosperous still, has rates which are only 9s. in the pound, and they will only get ½d. That, in comparison with Merthyr Tydvil's 2s. 9d. will enable you to see how fairly this money is being apportioned. There will be similar differences in the counties. In Caernarvon the local rate is 19s. 1d. in the pound and the assistance will be 2s. 1d., whereas in Surrey, where the rate is only 11S. 2d. they are to have 3d. in the pound.

For those reasons and the fairness of the arrangement, I commend this Bill to your Lordships' notice and in doing so I should like to point out that a great part of the wonderful political strength of this country, of our country's solidarity and efficiency, is very largely due to the efficiency of the local authorities in administering their affairs with great devotion. They attract men who are prepared to give good service to them loyally and in an honorary capacity. I think we should be proud of our local authorities and the general efficiency with which they carry out their work and should be prepared to help them whenever we have an opportunity. I beg to move.