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MOST SECRET.
C.?.
221 ( 5 1 ) .
COPY NO.
0
A
I
B
H E
T.
ECONOMY,.
DRAFT WHITE PA.?ER,
Note hy t h e
The a t t a c h e d d r a f t
administrative
requiring
economies
legislative
53 ( 3 1 )
White Paper.which i n c l u d e s
t o he e f f e c t e d .
sanction,
in accordance with Cabinet
(Cabinet
Secretary.
on Monday,
of M i n i s t e r s
appointed i n the Cabinet
In view of
Cabinet
September 7 t h ,
the s h o r t
has g i v e n i n s t r u c t i o n s
of
for
w i l l be
1931, by the
time a v a i l a b l e
the paper
(Signed)
4 t h September,
r
1931.
Conference
the Prime
M. P.A.HAKKEY.
Cabinet.
1031,
examined
to be c i r c u l a t e d
Secretary,
S, .".l.
Treasury
Conclusion r e f e r r e d
forthwith,
2, W h i t e h a l l G a r d e n s ,
thdsj:
the 3rd September,
The d r a f t
a t 2 . 4 5 p.m.
above.,
as
has b e e n p r e o a r e d b y t h e
directions
Conclusion 3 ) .
as w e l l
the
to
to
Minister
the
Memorandum on t h e m e a s u r e s
Government t o
p r o p o s e d hy H i s
secure reductions
in
Majesty'
national
expenditure.
The f o l l o w i n g
parts.
In the
Government t o
memorandum i s
first,
the
proposals
secure r e d u c t i o n s
e x p l a i n e d and a summary o f t h e i r
the
second,
explanation
under t h e
B i l l .
of
given
is
are
given.
legislation
set
out
of the a c t i o n which w i l l
powers s o u g h t
two
of His Majesty * s
effect
economies a r e
into
expenditure
the points which r e q u i r e
connection with these
divided
in the N a t i o n a l
In
in
and
he
taken
Economy
i.
Measures
to
secure
reduction.?
in
national
expend!ture UmUt-LOYMSLYP
The measures p r o p o s e d
INSUiiANCi!;.
in respect
o f Unemployment
ance and t h e e s t i m a t e d e c o n o m i e s ^ i n t h e
are
as
y e a r 1932­
follows.
(1)
A r e d u c t i o n of w e e k l y "benefit r a t e s ( e x c e p t
f o r t h e dependant c h i l d ) by 10 p e r c e n t .
rounded o f f * t b " t h e " " H e a r e s t 5cu
The f o l l o w i n g
weekly
financial
Insur­
rates
entitled
to
for
table
the
benefit,
shows t h e
present
several classes
together'with
- / a n d what t h a t , . r a t e , w o u l d b e . . i f
of
the
and
that
proposed
i n s u r e d p e r s o n s now
present weekly
rate
a r e d u c t i o n . of. e x a c t l y
10
por-e*atw-v*er-e'--a-pplxe'd-;jf ' -
17/15/9/r
lan
VV oman
A d u l t dependant
C h i l d dependant
/.s
15/3
13/S
8/2/­
12/6
10/9
\
/1.2
1V'9.6^
12/7.2
10/0.6;
\ f
\ i
\! I3 / l A
.'2
Juveniles:­
Boys a g e d 17
G i r l s do.
Soys a g e d 16
Girls
do.
:
7/6
6/5/The s a v i n g
is
3
14/12/-
fouug 7* oman
Proposed
Hates.
./ R a t e s brft an
dxact"lOj/S
reduction.
\15/
Present
Rat s s .
6/9
\ V
\ '
\ 5'/ -i. S
9
4/6
.4/5
estimated
to
result
from t h i s
reduction
£12,800,000.
(2)
An i n c r e a s e o f w e e k l y c o n t r i b u t i o n s t o l O d . each
f r o m e m p l o y e r s , employed and t h e E x c h e q u e r i n
t h e case o f men, w i t h c o r r e s p o n d i n g I n c r e a s e s
i n t h e c a s e o f women and o t h e r c l a s s e s o f
contributors.
The e s t i m a t e s
average
year
live
1932-3.
of
economies a r e b a s e d
register
oi
3,000,000
on an assumed
during
the
financial
The p r e s e n t
the s e v e r a l
and p r o p o s e d w e e k l y
classes of
Oon t r i b u t o r ,
rates
of
insured contributors
s
BnpJLo,Y ed
c o n t r i b u t i o n "P^rsp.
contr ibut i on
contribution
a r e as f o l l o w s
Ex c h e qu. e r
c o n t r ibution o
1
ila
for
:­
Total
contribution.
s
P r e s - ProP r o s - P r0 P r e s - Pro
PrejJ'" Pro-­
en t .
po sjecL. ent.. p o s e d . e n t .
e
d
o
en t . p o s e d .
£2?.
(3)
lOd o
9d.
5d.
9do
8d.
4fd
8d.
7d,
4d.
7d.
6d.
3-lrd,
Men
Young Men
Boys
W omen
Young Women
Girls.
7d. l O d .
lOd
Hd,
6d,
9d. 6-A-d. 9d
3-£-d o
5 d . 3f-d. 5d .
9d. 6-vd.
-vd.
6d.
9d ,
5d.
8d, 5-f-d o 8d
3d .
4id . 3 f d a A.X i .
The e f f e c t
of
this
from I n s u r a n c e b e n e f i t
to
apply
payments and t o
in f u t u r e ,
those
including
to
is
to
transfer
the t r a n s i t i o n a l
to
class
27q
.
24d.
13-g-d.
continue
i n need o f
it.
to
- not
Scheme I f
Payment w i l l
Exchange and t h e r e c i p i e n t s
I unemployment as a t p r e s e n t .
elia r g e " o n t h e
payments
have
insurance b e n e f i t .
receive assistance
be made a t
will
attend
They may,
i n cash a t
they
see
given
t h o s e who do so b e c a u s e t h e y
of
in
transitional
coming on t o t r a n s i t i o n a l
the Insurance
claimants
payments made ( a s t o which
p e r s o n s now d r a w i n g
t h e 26 weeks l i m i t
r a t e as under
I
limitation
A n e e d s t e s t f o r t r a n s i t i o n a l payments
a f t e r i n s u r a n c e r i g h t s have e x p a r e d .
This w i l l
however,
19*d.
16-fj-d.
9ld.
B , e
reduce the t o t a l
A(4)
u
reached
19-l-d,
il-id-
A l i m i t a t i o n of insurance b e n e f i t (as d i s t i n c t
f r o m t r a n s i t i o n a l p a y m e n t s ) t o .26^ w e e k s , a f t e r
which a f r e s h i n s u r a n c e q u a l i f i c a t i o n would be
r e qu i r s d .
*j"***'"" " ' ' ^^
-&m&&m***
,
Itself
30d.
27d ,
15 i .
t h e same
shew t h a t
the
they
Employment
there to
prove
The amounts so p a i d w i l l
be a
Exchequer .
The p r o c e d u r e w i l l
be t h a t when unemployed
persons
are
come t o t h e
end o f t h e i r
claim further
assistance
insurance b e n e f i t
and d e s i r e
their
be r e f e r r e d
the Public A s s i s t a n c e A u t h o r i t y
t h e i r need,
and t o
their rates
of
claims w i l l
for
the
district
d e t e r m i n e t h e amount p a y a b l e
ordinary b e n e f i t ) -
of the A u t h o r i t y w i l l
be
The
to
to
to
assess
(not
exceeding
determination
final.
The e s t i m a t e d s a v i n g under t h i s head
is
n o , 000,000-,,
I
(5)
P r o v i s i o n w i l l be made i f o r d e a l i n g w i t h t h e
e n t i t l e m e n t t o insurance b e n e f i t in cases in
w h i c h p e r s o n s w i t h b r o k e n p e r i o d s o f employment
and unemployment drrrw*^4b^tant'ial w a g e s i
There
a r e not s u f f i c i e n t d a t ^ i f d r e s t i m a t i n g t h e
s a v i n g under t h i s h e a d , $which, h o w e v e r w i l l
n o t be l a r g e i n amount. V
.
I
SUASIART
On t h e b a s i s
OP UNEMPLOYMENT
of the
Transitional Benefit)
in f o r c e ,
the
c o n t i n u e d payment
the r a t e s
and w i t h an a v e r a g e
financial
apart
at
position
from e c o n o m i e s
live
gJJMSl-
INSURANCE
of
Benefit
and on t h e
register
o f Unemployment
conditions
of
in
Sum t o be p r o v i d e d by E x c h e q u e r
comowing
——
The s a v i n g s
proposed to
the
of
removal
as f o l l o w s
£.
will
expenditure
reduce t h i s
28,500,OOP
y
(No.
3)
114,800,000
including
by r e g u l a t i o n s
Insurance
130,500,000
5,700,000
7 ,100.000
145,300,000
rates
—--is-,
t h e Unemployment
:­
ox-hff—
be e f f e c t e d ,
anomalies
present
1932-33,
B e n e f i t at e x i s t i n g r a t e s
I n t e r e s t on d e b t a t £ 1 1 5 , 0 0 0 , 0 0 0
Administration
T o t a l expenditure
Towards t h i s sum E m p l o y e r s and Employed
Persons would c o n t r i b u t e a t e x i s t i n g
at
3,000,000,
Insurance
would be a p p r o x i m a t e l y
(including
under
Act,
IS31,
as f o l l o w s
:­
p
Removal o f A n o m a l i e s , under t h e
Act of 1931,
3,000,000
Needs t e s t f o r t r a n s i t i o n a l
payments a d m i n i s t e r e d
t4a?E0j*gte^hj^uAg£J^
A^^^ta^jss^AAitiiQ^aifcie s
10,000,000
Reduction in r a t e s of b e n e f i t
12,800,000
Increase in Contributions of
E m p l o y e r s & Employed P e r s o n s
7 9.OOP,000
three
as f o l l o w s : E x c h e q u e r c o n t r i b u t i o n on
the 'Equal T h i r d s " b a s i s .
*-*
25,800,000
89,000,000
10,OOP,000
L e a v i n g as a c n a r g e on t h e
Exchequer i n 1S32-33, a f t e r
a l l o w i n g f o r economies
T h i s c h a r g e w o u l d be made up o f
—.W
r
parts
£.
19,300,000
b o f i c i e n c y g r a n t , being the
"su m r e qui r e a.. t o . , b a 1 a nee.... t. he
Unemployment Fund f o r t n e
Transitional
Payments
37 , 500 .000
----M-wwt^^iUfliw
The s a v i n g
to the
7 9 , 000,
Exchequer
£ 7 9 , 0 0 0 , 0 0 0 , (or £ 3 3 , 8 0 0 , 0 0 0 .
/
000
i s t h u s £ 1 1 4 , 6 0 0 , 0 0 0 minus
ROAD FUHD.
The e x p e n d i t u r e
1932 was e s t i m a t e d
as £ 2 7 , 8 6 5 , 0 0 0
under
(if
plus
the D e r a t i n g
existing
Scheme f r o m
will
a saving
£ 7 , 8 6 5 ,000 .
It
required
to
enable
practice,
it
t h e Road Fund.
that
in o r d e r
sum w i l l
'be provided
It
intended,
borrowed
this
The sum
£2,135,000
also,
that
in
the current year
will
be p r o v i d e d
In order
to
secure the reduction
essential
in
the a l t e r e d f i n a n c i a l
course,
s l o w e d down o r
will
Parliament.
Exchequer-
orogress
existing
now be r e d u c e d t o
V o t e and n o t b o r r o w e d by t h e
in
£10,000,000
t o t h e Road Fund.
require
new schemes must, o f
of
of £20,000,000 ­
and under
sum which t h e Road Fund w i l l
which i s
3um
n o t be b o r r o w e d b;^ t h e Exchequer but
of
paid
t h e Road Fund would have
obligations,
to lend i t
o u t of a v o t e
is
This
from t h e E x c h e q u e r n e x t y e a r o f
t o meet i t s
unaltered)
exchequer c o n t r i b u t i o n s
r e q u i r e d from the Exchequer w i l l
and t h i s
r em ain ed
t h e E x c h e q u e r would h a v e i t s e l f
£10,000,000
in
be r e d u c e d t o a round f i g u r e
was e s t i m a t e d
a loan
policies
the g e n e r a l
£27,865,000
of
from t h e Road Fund
of
the
by a
Expenditure
circumstances
be p o s t p o n e d and m-any schemes
c u r t a i l e d ^arsff^TSrg^-^s^ea^er?"
MINISTRY OF. HfoJUMI ANb IKPART. :Et'iT OF HEALTH FOR SCOTLAND,.
The s a v i n g s
amount
t o be s e c u r e a on t h e s e v o t e s
t o about £ 1 , 2 5 0 , 0 0 0
in a f u l l
£475,000 i n the remainder of
National Health
Insurance.
Remuneration of
Insurance
Since
insurance
the
y e a r and. t o
the f i n a n c i a l
Doc t o r
1st January,
y e a r 1931/52.
1924,
rate
the r e m u n e r a t i o n
of
9s,0d
each insured person i n c l u d e d i n a d o c t o r ' s
i s proposed that
from t h e 1st Octoberof
one-ninth;
the r a t e
the product
be a p p l i e d t o w a r d s m e e t i n g e x p e n s e s
of
of
this
of
o
a year
for
9s., Od,,
to
should,
a deduction
deduction
should
administration
of
t h e R a t i o n a l h e a l t h I n s u r a n c e A c t s w h i c h a r e now met out
moneys p r o v i d e d b y
£425.000
1932,
of
Parliament.
The amount w h i c h w i l l b e r e a l i s e d by
percentage
of
list.
3.931, be made s u b j e c t
and t h a t
about
and Chemists.,
d o c t o r s has b e e n a t t h e
It
will
deduction
is
estimated f o r
in the f i n a n c i a l
year
Great
this
Britain
at
e n d i n g or t h e 5 1 s t March,
and a t £850,000 i n a f u l l
A similar percentage
year.
d e d u c t i o n w i l l a l s o be made
as f r o m 1 s t O c t o b e r ,
1951, from the remuneration at
payable
c h e m i s t s and t h e sum r e a l i s e d by
to insurance
present
this
d e d u c t i o n w i l l a l s o be a p p l i e d t o w a r d s m e e t i n g the e x p e n s e s
o:
Health Insurance
a d m i n i s t r a t i o n a t p r e s e n t b o r n e by
the
Exchequer,.
sum w h i c h w i l l b e r e a l i s e d by t h i s
deduction
is
The
e s t i m a t e d t o amount t o about £ 5 0 , 0 0 0 i n t h e f i n a n c i a l
1931/32 and t o a b o u t £120,000
in a f u l l
year,
as E n g l a n d and W a l e s a r e c o n c e r n e d t o t h e
the present
c o n t r a c t w i t h the
chemists
subject
so
reconsideration
which e x p i r e s
in
year
far
of
Exchequer- Grant t o
Central
Fund
It
the N a t i o n a l H e a l t h
Insurance
n
i s proposed t o
£142,000 p e r
withdraw
the
grant
annum w h i c h would h e p a y a b l e t o
of
the
Central
Fund as f r o m 1 s t J a n u a r y 1932 under t h e p r o v i s i o n s
section
68 o f
the Rational
The Government
are,
however,
w h i c h was c o n s t i t u t e d f o r
Approved S o c i e t i e s
on v a l u a t i o n ,
propose
contributions
persons
is
anxious t h a t
the purpose o f
who a r e f o u n d t o
should be
therefore
Health Insurance A c t
that
be i n
Fund,
difficulties
They
the Health Insurance p a r t
employers of
of age which
at t h e p r e s e n t
transfer-red
t o t h e C e n t r a l Fund.
which w i l l
be t r a n s f e r r e d
£300,000 a
year.
the
time
Widows ,
1
and O l d A g e C o n t r i b u t o r y P e n s i o n s A c t ,
should be
of
insured
p a i d i n t o t h e P e n s i o n s A c c o u n t under t h e
Orphans'
1924.
assisting
i n no way weakened.
p a y a b l e by the
o v e r 65 y e a r s
this
of
1925,
The sum
amounts a p p r o x i m a t e l y
to
Mi s c e l l a n e o u s .
It
is
expected that
there
will
down o f *Irr"rBpHid--expaiisdron---af^houB-in-g
the r e s u l t
of
of
t h e measures f o r
expenditure which
authorities.
account
will
It
is
amount
are b e i n g
estimated
t o about
be some
expenditure
regulating
local
the s a v i n g s
£150,000,
as
development
taken by the
that
slowing
on
this
Reductions of
Judges
;
Salaries
o f M i n i s t e r s /and. Members o f
C i v i l S e r v a n t s and Members o f
The Government p r o p o s e
the p r e s e n t
emergency a l l
payable
salaries
o f £2 ,,000 a y e a r and c v e r
than £ 2 , 0 0 0 a y e a r ?
t o members o f
Service.5
shall
of
be
o f £ 5 , 0 0 0 a y e a r and o v e r ,
£ 5 , 0 0 0 a y e a r , by 7^% on s a l a r i e s
but l e s s
the F i g h t i n g
d u r i n g the p e r i o d
ministerial
r e d u c e d ; . - by 20% on s a l a r i e s
10/S on s a l a r i e s
that
Parliament,
?
but l e s s
of £1,000 a y e a r
and t h a t
t h e House o f
by
than
and o v e r
the allowances
Commons s h a l l b e
now
reduced
by 5%\
They p r o p o s e f u r t h e r
graduated scale
- 10% or
made f r o m t h e s a l a r i e s
20fo
of
t h a t abatements
on the
as t h e c a s e may be -
Judges and o f
officers
same
shall
of
be
the
Crown S e r v i c e s whose s u b s t a n t i v e pay i s £ 2 , 0 0 0 a y e a r
four
o r morec
W i t h r e g a r d t o t h e r e m u n e r a t i o n o f members o f
Crown S e r v i c e s whose pay i s l e s s
than £2,000 a y e a r
Government have d e c i d e d t o f o l l o w
of
t h e Committee on N a t i o n a l
I n the case of
cost
of
the
the
recommendations
Expenditure
the Civi3. S e r v i c e ,
l i v i n g bonus i s b a s e d f e l l
/uajI
throughout
the index
on which
by 10 p o i n t s on t h e
ni\
5 points
on t h e
r e v i s i o n made on 1 s t September 1 9 3 1 , t h e s e r e d u c t i o n s
of
saving to
rate
of
r e v i s i o n accounts f o r
o f £1,600^000""a"'yea'r )
I n the c a s e o f t h e F i g h t i n g
0
t o b e made w i l l
as
the Exchequer a t t h e r a t e
which t h e most r e c e n t
revision
*
made on 1 s t ^ S ^ t e m b e r H ^ ^ O and by a f u r t h e r
a total
the
take e f f e c t
involving
£4,800,000 a y e a r ,
a s a v i n g at
Services,
the
changes
as f r o m 1 s t O c t o b e r a n d a r e
follows
(i)
S t e p s w i l l be t a k e n
through the
normal
n e g o t i a t i n g machinery t o r e v i e w
a pre­
ferential
bonus o f
the
V
fi'om 2 / - t o 4/-- a
briefly
week which has b e e n p a i d i n
the
Royal
Dockyards and Ordnance F a c t o r i e s
1924
t
( 1 1 ) New r a t e s
for
of pay,
introduced in
i n the s e r v i c e s ,
to the e x i s t i n g
were n o t
then
now b e a p p l i e d
to
personnel,
officers
cost
of
in respect
living
and b r o u g h t
cost
of
since
into
living
of
the f a l l
revised
harmony w i t h t h e
current
The d e d u c t i o n
0
published
t h e s i x months 1 s t March t o
August 1931
and w i l l bo l l g
?
t h e Qji now i n
forcs
Slat
t
a t t h e d a t e when t h e
man e n t e r s upon h i s f i n a l
which q u a l i f i e s
who b e f o r e
engagement
him f o r p e n s i o n .
final
engagements
complete
time f o r pension w i l l
entitled
to
1931 a r i s i n g
on t h e
savings
reckon
rates
to
be
service prior
t o -that
i n t r o d u c e d i n 1919t
i n 1332 compared w i t h
from the r e d u c t i o n s
Members c f P a r l i a m e n t J u d g e s ,
Fight-ihg Services
hen
t h e 1 s t October-- 1 9 3 1 , had
e n t e r e d upon t h e i r
The t o t a l
Services
i n f u t u r e b e d e t e r m i n e d by T,he
Scheme i n f o r c e
date
h
instead of
The p e n s i o n r a t e s c f men i n t h e
will
from
1931 W i l l be b a s e d oh t h e
average of the index f i g u r e s
for
in
1919 w i l l b e
i:ade.x
t h e 1st October
for
applied
D e d u c t i o n s made f r o m t h e pay and p e n s i o n s
of
(iv)
officers
personnels
The 1925 r a t e o w i l l
(iii)
IS25
t h e men and l o w e r r a n k s c f
all
since
Civil
a r e e s t i m a t e d t o be
of
salaries
the
of
estimates
Ministers,
S e r v a n t s and Members o f
£4,054,000,
the
A to taX i n d u c t i o n ,
i n pay a l r e a d y
for
specified;
on s e r v i c e s
of
£5.i m i l l i o n s .
i n view of
of
?
secure
the e x t e n s i v e
which
the
$
cf
can o n l y b e
secured with g r e a t
t h e r e d u c t i o n s mads w i l l
h o t be o f
difficulty
a
on
appreciated
S e r v i c e s have made i n r e c e n t y e a r s . t h e s e f u r t h e r
tiens
these
effect
must be
reductions
amount
secure
have t h e l e a s t
it
savings
to the
They w i l l
the S e r v i c e s but
Estimates
£8,600 COO.
Departments w i l l
i n ways which w i l l
the e f f i c i e n c y
that
i n 1952 o f
o t h e r t h a n pay and p e n s i o n s
approximately
reductions
t h e r e due:, i o n s
w i l l h e made i n t h e
the F i g h t i n g Services
The S e r v i c e
including
r e due­
and many
continuing
charactera
Pollbey
( A p a r a g r a p h on P o l i c e
later
when t h e Hcme O f f i c e
seen the R e p r e s e n t a t i v e
\
Savings w i l l
be
and S c o t t i s h O f f i c e
Inserted
have
Bodies),
\
\
\
\
N
\
X
\
\
\
\
\
\
Education.
i
will
total
be made i n
(i)
the expenditure
Grants in
be c a l c u l a t e d
1931.. t h e r e
respect
of
of
is
a deduction
t h e Board of
from
recommended t h a t
(ii)
the conclusion
The Grant In r e s p e c t
salaries
is
60%.
but
as t h i s
the
reduction of
by l o c a l
authorities,
(iii)
of
will
the o b j e c t
education
(iv)
will
In addition
slowing
to
down o f
measures t h e i n c r e a s e
be
position
should
be
50$*
notwithstanding
charge
borne
be made e l s e w h e r e
of meeting t h i s
of
in
difficulty
grant
for
abolished.
t h e above
specific
the s e r v i c e
in
be
teachers'
salary
The p r e s o r t SGyo minimum l i m i t
elementary
the
now be r e d u c e d to
the
bill-
should
deduction
elementary
increase
adjustment
with
the
will
October,
salary
considered
percentage would,
salaries;
the grant formula
general
of
teachers
such d e d u c t i o n
that
This grant w i l l
reduction
of
the a g g r e g a t e
year
Education,
t h a t a s from 1 s t
The Government has c a r e f u l l y
and has r e a c h e d
in a f u l l
the s a l a r i e s
on t h e a s s u m p t i o n
The May Committee
204.
saving of £9.4 m i l l i o n s
m e a s u r e s , by a
and o t h e r
the Education
economy
Estimates
in
1932
compared w i t h 1 9 3 1 , which would o t h e r w i s e have been
£ 2 , 2 5 0 , 0 0 0 , w i l T be r e s t r i c t e d
to £1,000,000 - a
reduction
of' "'£l"/250,OCO..
The r e d u c t i o n s
of
e x p e n d i t u r e made i n
and Wales w i l l
Involve
the
t h e g r a n t s made f o r
savings
in
The f i n a n c i a l
the
automatically
effect
in
a. r e d u c t i o n
Education in
the f i r s t
p r o p o s a l s which have been a d o p t e d i s
as
full
England
of
ll/SO
Scotland,
year
follows;­
of
of
£.
(1)
(2)
A b o l i t i o n o f SOfi minimxim l i m i t o f
grant f o r elementary e d u c a t i o n . . . . . . . .
1,450,000
R e d u c t i o n o f 15cjo from t h e a g g r e g a t e
of teachers
s a l a r i e s and r e v i s i o n o f
grant formula f o r elementary education
(i.e.
50^ f o r t e a c h e r s
s a l a r i e s and
r e v i s e d c a p i t a t i o n grant per u n i t of
a v e r a g e a t t e r i d a h o e ) and a l l o w i n g an
in6'fease o f grant to poor a r e a s . . . . . .
5,987,500
R e d u c t i o n o f g r a n t s f o r h i g h e r edu­
c a t i o n i n c o n s e q u e n c e o f 15 j r e d u c t i o n
from the a g g r e g a t e o f t e a c h e r s '
salaries
712,500
1
1
(3)
;
(4)
;
R e d u c t i o n of growth o f e d u c a t i o n
e x p e n d i t u r e in 1932 . . . . . . . . . . . . . . . . . . 1 . 2 5 0 , 0 0 0
TOTAL
. . . . . . . . . £ 9 , 4 0 0 , 000
Add 11/80 i n r e s p e c t c f s a v i n g in
c c o 11and . . . . . . . . . . . . . . . . . . . . . . . . . O ^ . J
TOTAL
Owing t o
paid only
year
of
9C70 o f
1932 w i l l ' be
these
savings w i l l
allowing
1931.
for
the
It
is
are to
financial
on g r a n t s
year,
in
the saving
come I n t o f o r c e
estimated that the
be a p p r o x i m a t e l y
and W a l e s and £ . 5 m i l l i o n
in
1932
in
The V o t e f o r
grants
be used f o r
in
1st
the
England
Grants.
to U n i v e r s i t i e s
and
norr-racurrent
reducing
of
institutions.
Colleges
The a b o v e sum o f
an accumulated b a l a n c e which
withdrawn w i t h o u t
the U n i v e r s i t y
s a v i n g s in
£3.5 m i l l i o n
be reduced i n 1932 by £150^,000.
£150,000 r e p r e s e n t s
as from
Scotland.
University
normally
effect
the
are
£10,300:000**Sj
current year w i l l
will
accrue in
t o be made in t h e c u r r e n t
The r e d u c t i o n s
October
. . . . . . . . £ 1 0 , 7 0 0 ,000
t h e manner i n which Government g r a n t s
1932 a n d , a f t e r
the savings
1,300,000
purposes
would
and can be
the annual r e c u r r e n t
grants
t o any
1 01
lot
M i n i s t rjv^oX,_A.griculture
The p r o v i s i o n
£580,000.
This
grants to
landowners
schemes,
the
will
a reduction
assistance
involve
for
the
field
in the
and a r e d u c t i o n
education.
for
the
Expenditure
be r e d u c e d ,
and i t
in t h e
provision
the
Royal Veterinary
College.
not
a Supplementary
proposed t o
Estimate
the A g r i c u l t u r a l
land
this
the
On t h e F i s h e r i e s
include
provision
Fisheries
this
Research s h i p .
ship at
purposes
i n 1932 f o r
is
the
being
disposal
of
of the
Department
similar
publicity
Act,
will
to
and no
vote
of
provision
Act.
be i m p o s s i b l e
maintaining the
the
postpone
purposes
purposes o f t h i s
it
to
reconstructing
The p o s s i b i l i t y
industry
of
for
to
new
placing
research
examined.
Agriculture
A saving
of
year f o r the
side
Boards,
agricultural
ask i a r l i a m e n t
(Utilisation)
be made i n 1952 f o r
the
of grants
of
cost
supply
agricultural
be n e c e s s a r y t o
towards the
is
in
on N a t i o n a l Mark
will
for
and Catchment
scale
of
and w a t e r
sums a v a i l a b l e
Government g r a n t
will
discontinuance
drainage
the
It
be r e d u c e d by
o f new d e v e l o p m e n t s
Local Authorities
will
1932 w i l l
of Drainage A u t h o r i t i e s
postponement
research,
for
and F i s h e r i e s .
of
(Scotland).
£75,000 w i l l
of Agriculture
be made i n t h e
for
Scotland
case
on somewhat
lines.
Fprestry.
The e x p e n d i t u r e
1932 w i l l
of t h e F o r e s t r y
be r e d u c e d by £ 4 7 8 , 0 0 0 .
be s e c u r e d by r e s t r i c t i n g
and by s u s p e n d i n g t h e
Care w i l l
young
be t a k e n t h a t
plants
a r e not
This
afforestation
provision
Commission
work and
of forest
the Commissioners
prejudiced.
reduction
workers
1
in
will
acquisitions
holdings.
nurseries
of
Empire M a r k e t i n g ; B o a r d .
The g r a n t
to
the Empire M a r k e t i n g Board
he r e d u c e d n e x t y e a r by £250,CCC"
" - s a w " " "
additional
to savings
1
This reduction
through
which w i l l
be s e c u r e d on t h e
of
those Votes-
The g r a n t
be r e s t r i c t e d
The A d v i s o r y
Fund.
to the C o l o n i a l
to £750,000 n e x t y e a r
Committee w i l l
recommendations
greatest
respect
gross
by g r a n t s made by t h e B o a r d
C o l o n i a l Development
their
is
"
Votes for:,the. A g r i c u l t u r e Departments in
s e r v i c e s now f i n a n c e d
will
D e v e l o p m e n t Fund
(saving £250,000).
be i n v i t e d
to
concentrate
on schemes which w i l l
and s p e e d i e s t b e n e f i t
to
will
this
give
country.,
the
UNEMPLOYMLINT GRANTS.
As d e c i d e d b y t h e l a t e Government
date
for
a p p l i c a t i o n s by L o c a l A u t h o r i t i e s
Unemployment G r a n t s Committee
schemes o f w o r k f o r
5 0 t h J u n e , 19.31,
for
the r e l i e f
grants
to
begin before
31st December, 1931, a r e b e i n g
application
good reason i s
in respect
circumstances
after
that
shown why
c o u l d n o t be made.
approximately
900 a p p l i c a t i o n s
estimated value
of
grant
reduced and,
are being
o f work
the
25 p e r c e n t ,
outstanding
except
anticipated
highest
the
cost
on t h i s b a s i s
of
the
of
an
The r a t e s
in regard
to
definitely
i n no c a s e
scheme.
of
exceed
It
is
the
economic v a l u e w i l l b e p r o c e e d e d w i t h ,
and
coupled w i t h the
grant W i l l result
Exchequer
amount w h i c h i t
reduction
In ah estimated
of £500,000
had e x i s t i n g
that
present
o n l y schemes o f
this factor
of
revised rates w i l l
of
entertain
There are a t
about £ 1 4 , 0 0 0 , 0 0 0 ,
to
earlier
schemes f o r w h i c h a g r a n t has a l r e a d y b e e n
promised,
the
towards
applications
provided
Tact
o f unemployment was
though i n e x c e p t i o n a l
that date
the
i n the
saving
the
i n 1932/5 as compared w i t h
would have been necessary
rates
to
rates
of grants been
to
continued.
the
provide
The T r e a s u r y has i s s u e d
Departments
calling
for
a stringent
expenditure with a view
*****
e c o n o m i e s , the s p e c i f i c
on major
to
review
Government
of
he o b t a i n e d
to
s u p p l e m e n t i n g by f u r t h e r
fc^j^S^
d e c i s i o n s o f t h e Government
economies, a saving
i n 1932 by a s l o w i n g
of £250,000
down o f
****
work o f
It
of
the
\
I
,, 1
Land V a l u a t i o n .
is
expected that
economies w i l l
year
their
issues.
Amongst o t h e r
will
a circular
this review
produce a t o t a l
£2,500 ,000 *
of
of
miscellaneous
savings
next
1
i
11.,
Action
t o b e t a k e n under t h e
sought i n
It
is
respect
before
into
the
of
that Orders
-A-ith t h e f o l l o w i n g
I n more d e t a i l
in
t h e N a t i o n a - l -Economy
proposed
made t o d e a l
powers
in
the f i r s t
which
in C o u n c i l
matters
part
statutory
Bill.
of
s h o u l d be
(described
this
powers a r e
memorandum)
required
economy measures p r o p o s e d can be
effect:­
( 1 ) Unemployment
Insurance.
(l)
Reducing
the r a t e s of
benefit.
(2)
Increasing
(3)
L i m i t i n g t h e payment o f
t o 26 weeks..
contributions.
insurance
benefit
(4) A p p l y i n g a means t e s t t o a p p l i c a n t s
T r a n s i t i o n a l payments *
(2)
carried
for
Roads o
(A n o t e on t h e l e g i s l a t i o n
t h e Road Fund w i l l
r e q u i r e d as
be i n s e r t e d h e r e
regards
later)*
5
c
J
1 oo
(3)
National Health
(I)
Insurance,
applying the saving
medical b e n e f i t
towards
in the
(doctors
t h e payment
of
i n c u r r e d b y Government
the administration
Health Insurance
.2)
of
cost
and
the
of
chemists)
expenses
departments
the
in
national
Acts;
w i t h d r a w i n g the Exchequer
grant
N a t i o n a l Health Insurance
C e n t r a l . Fund
under s e c t i o n 68 o f
Insurance Act
transferring
to
the N a t i o n a l
the
Health
1921;
from the P e n s i o n s
Account
under t h e Widows Orphans and Old Age
Contributory
Pensions Act
Fund the h e a l t h
insurance p a r t
years
Of
of
insured persons
Salaries
authorising
1928.
etc.,
reductions
are
repealing
soldiers
at
o v e r 65
of
salary
on
s c a l e p r o p o s e d i n c a s e s where
salaries
(5)
the.
respect
the
(2)
of
in
Seductions
(l)
Central
c o n t r i b u t i o n s payable by employers
o f a g e as f r o m 1 s t January
(-1)
t o the
f i x e d by
statute,
an e x i s t i n g p r o v i s i o n
pensions
the time of
on t h e s c a l e
their
such
first
fixing
in
force
enlistment.
Education,
(l)
abolishing
a s r e g a r d s febeme-rr&a-i^i; lAt--vvv*^ -* y
Education,
the
l
obligation
minimum JSO^^joer c e n t ,
t o pay
expenditure
to L o c a l Education A u t h o r i t i e s
Section 113(2)
of
a
grant
under
the E d u c a t i o n A c t 1921.
v
(6)
Felice,
(A note w i l l
the
be
inserted
economies p r o p o s e d i n the
case
later
of
if
it
is
the p o l i c e
found
that
require
legislation).
(7)
l a n d lOsa^-nage
Abolishing
Land D r a i n a g e A c t ,
rates
in respect
of
the
existing
19.30, on t h e
limit
i n S&SL'22(2)
amount c h a r g e a b l e ^ o n
draNinage s c h e m e s .
of
the
the
OF EFFECT IN 1952 OF THE MEASURES FOR REDUCTION
SU-SJARY
OF NATIONAL EXPENDITURE EXPLAINED I N THE PsSSdSDES^
PARAGRAPHS.
Note
:-
Estimates
^hc^LJU^i^^
^
(including
the sums w h i c h
would h a v e "been b o r r o w e d : ' f or t h e Unemployment and Road
Funds had e x i s t i n g p r a c t i c e
appreciably
i n 1931.
h i g h e r under e x i s t i n g
policies
The s a v i n g shown, w h i c h i s
w i l l be e f f e c t e d
estimates
figures
c o n t i n u e d ) w o u l d have b e e n
i n 1932, does not
i n 1932 w i l l b e l e s s
the
i n 1932 than
saving
therefore
which
imply
that
than t h o s e i n 1931 b y
the
stated.
S a v i n g i n 3.952,
Unemployment I n s u r a n c e
( a ) Reduction of expenditure
( b ) I n c r e a s e d income f r o m
contributions of
e m p l o y e r s and workmen
Total
f o r Unemployment
Insurance
25,800,000
ID .,000 ,000
35^800,000
Road Fund
M i n i s t r y o f H e a l t h and S c o t t i s h
Department o f H e a l t h
Reductions of S a l a r i e s ,
Crown S e r v a n t s
etc.
of
F i g h t i n g S e r v i c e s ( i n addition to
r e d u c t i o n s of £5.114,000 i n
pay
Police
and p e n s i o n s )
5,500,000
(Great B r i t a i n )
Education
(Great
500,000
Britain)
10,500,000
U n i v e r s i t y Grants
150,000
Agriculture
655,000
(Great B r i t a i n )
Forestry
478,000
Empire M a r k e t i n g B o a r d
250,000
C o l o n i a l D e v e l o p m e n t Fund
250,000
Unemployment G r a n t s
500,000
Miscellaneous
TOTAL
2 .,500,000
£70,052-000