Education (Local Authority Expenditure)

HC Deb 11 February 1963 vol 671 cc137-8W

Mr. Hocking

asked the Chancellor of the Exchequer what would be the cost to the Exchequer if the total burden of education were transferred from local education authorities to the Exchequer; and what increase would be necessary in the standard rate of Income Tax to cover this cost.

Mr. Barber

Total local authority expenditure on education is about £950 million—equal to about half-a-crown on the standard rate of Income Tax (assuming proportionate increases in the reduced rates). But over 60 per cent. of general grant expenditure is already financed by the Exchequer.

Mr. Hocking

asked the Chancellor of the Exchequer what would be the cost to the Exchequer if the total cost of teachers' salaries were transferred from local education authorities to the Exchequer; and what increase would be necessary in the standard rate of Income Tax to cover this cost.

Mr. Barber

Total local authority expenditure on teachers' salaries is about £480 million—equal to over 1s. 3d. on the standard rate of Income Tax (assuming proportionate increases in the reduced rates). But of course roughly 60 per cent. of general grant expenditure is already financed by the Exchequer.