London

Expenditure.—A comparison of the bases of local finance may be made as follows: Local authorities' total expenditure in England and Wales ac cording to specified services, with the amounts met from Gov ernment grants in 1924-25, is as follows:— Loans.—The total outstanding loan debt of local authorities increased 56% from L555,145,292 in 1919-20 to £864,882,330 in 1924-25. Of the last named total 45% is represented by the public utility or trading services (viz., waterworks 17%, harbours and docks 13%, etc.), whilst housing and town planning represent 25% of the total, and highways and bridges g%. But whereas the largest individual item, i.e., on account of the trading services has increased about i64,000,000 since 1913-14, two-thirds of the total increase since 1919-20, or over £200,000,000 in five years, has been on account of housing and town-planning, while highways and bridges account for an increase of £20,000,000 and sewerage and sewage disposal works Lio,000,000 since 1919-2o. No other item of debt increase is worth note. The truly national character of the charges and responsibilities borne by local authorities and the local ratepayer on account of these services is therefore ap parent. Further, of the total of loans sanctioned to local author ities in England and Wales for public works in 1927-28 (exclusive of poor law and housing works and loans for providing temporarily for current expenses) L23,522,618 out of L27,329,731 were for non-remunerative services, such as public health, roads and bridges, education, hospitals and private streets and other improvements.

Derating in 1928-29.

The Rating and Valuation (Ap portionment) Act, 1928 (which was designed to be construed as one with the Rating and Valuation Act, 1925, in relation to places outside London, and the Valuation [Metropolis] Act, 1869, and amendments in relation to London), was passed "to make provision with a view to the grant of relief from rates in respect of certain classes of hereditaments and for the distinction in valuation lists of the classes of hereditaments to be affected." Under it, special valuation lists are in course of preparation which will contain particulars about: (a) "agricultural lands and herit ages," which by definition of the act are now to include "wood lands . . . and any lands exceeding one-quarter of an acre used for poultry farming," (b) industrial premises, and (c) freight transport premises. In addition, however, to the statutory relief already enjoyed by certain classes of hereditament, the Local Government Act 1929 gives effect to the following derating pro posals: The act provides that after Oct. 1, 1929 ) agricultural land and buildings (already relieved as to three-fourths of their rateable value under the Agricultural Rates Act, 1923), shall become wholly exempt from rates and shall be excluded from valuation lists coming into force after that date, while (2) in dustrial and freight transport properties (or those parts of such properties which are occupied and used for industrial or transport purposes) shall be relieved as to three-fourths of their present net annual values (under the new rating acts).

Clause 72 provides for the assessment of houses and cottages occupied in connection with agricultural land by persons engaged thereon, on the basis of their letting value as such and not on the basis of their letting value as ordinary dwelling-houses, which might be materially higher, thus preserving the principle laid down in the Agricultural Rates Act, 1896, which is to be repealed.

The rating relief to be given to certain freight-transport under takings will only be afforded conditionally on those undertakings making equivalent reductions in their transport charges wherever practicable. A schedule attached to the Act provides for the hand ing on of such rating relief to certain selected traffics.

Financial Provisions : General Exchequer Contributions. —The scheme provides for the discontinuance after March 31, 1930, of certain grants at present paid in aid of local services, and the payment of an annual consolidated grant which will take the place (I) of the rate and grant income lost in consequence of the rating reform scheme and (2) the discontinuance of the existing grants.

The total of the new grant, called the "General Exchequer Contribution," is calculated as follows for the first three years: The losses on account of (a), i.e., rates, are estimated at £24,000,000; and on account of (b) i.e., discontinued grants at L16,500,000. The amount of the general Exchequer contribution in each year of the first three years will amount approximately to £45,500,000, as follows:— The Method of the purpose of allo cating the general Exchequer contribution among the counties and county boroughs, there is to be calculated for each area a figure of "weighted" population for each fixed grant period which shall determine the share of that area in the total sum available. But this full scheme does not come into operation until 1947. For the first four fixed grant periods the county and county borough apportionment will be made up of : (I) Lhe "appropriate percentage" of its estimated losses on account of rates and dis continued grants; and (2) its share, under the formula, of the balance of the general Exchequer contribution. The "appropriate percentage" is defined in clause 134, and for the first two periods it is 75%, for the third 5o%, and for the fourth 25%. Out of the county apportionment of any county will be deducted the amounts necessary to make grants to non-county boroughs, urban districts, and rural districts within the county. The bal ance is to be paid to the county council, and will be "the general Exchequer grant" of that county council.