§ The Prime Minister
The option of transferring financial responsibility for teachers' salaries from local authorities to the Exchequer was considered in the Green Paper on "Alternatives to Domestic Rates". We announced in the rates White Paper (Cmnd. 9008), paragraph 2.12, that we had rejected this option. It would be undesirable for the Exchequer to take over financial responsibility for the pay bill while leaving manpower and management decisions with the local authorities. Similar considerations apply to taking central financial responsibility for the police.