§ Major BREESEasked the President of the Board of Education whether it is intended to raise the amount prescribed in Article 6 (2) of the Regulations for Substantive Grant for Public Elementary Schools, which at present stands at 27d., and by reference to which the increased grant in highly-rated areas is calculated?
§ Mr. FISHERThe devaluation of money necessarily involves a considerable1128W increase in the public expenditure on education, and necessarily affects rates as well as taxes; and since assessable values have not, generally speaking, been raised so as to correspond with the change in the value of money, increased rates are unavoidable. The grant under Article 6 of the Regulations was intended for the relief of exceptional areas, and it is obvious that if there is a general rise in the education rates throughout the country so that the rates in a very large number of areas exceed 27 pence, it is no longer possible to regard a rate in excess of that amount as exceptionally high. Estimates of the expenditure of Local Education Authorities in 1920–21 are not yet available, but in view of the uncertainty of the position, and of the fact that the Regulations for 1920–21 have now to be issued in advance of the commencement of the year, and that they will also affect the Estimates of the year after, it has been considered necessary, in order to secure the principle on which the Special Grant was based, to raise the limit to 48 pence. Areas whose expenditure falling on rates exceeds that limit will be entitled to exceptional relief as highly rated areas.