(c) crown copyright Catalogue Reference:CAB/129/85 Image Reference:0019 The circulation of this paper has been strictly limited. It is issued for the personal use of TOP SECRET Copy No. M. C.(57) 19 30th J a n u a r y , 1 9 5 7 . CABINET GOVERNMENT EXPENDITURE M e m o r a n d u m b y t h e M i n i s t e r of E d u c a t i o n I q u i t e a g r e e t h a t t h e p r o s p e c t i v e i n c r e a s e in t h e C i v i l E s t i m a t e s of £ 2 8 0 m i l l i o n s a f f o r d s an o c c a s i o n for r e f l e c t i n g u p o n our g e n e r a l social policy. But I would u r g e m y colleagues that d e c i s i o n s a b o u t e c o n o m i e s s h o u l d b e m a d e in t h e l i g h t of o u r s o c i a l p o l i c y , and not s i m p l y in r e l a t i o n t o t h i s f i g u r e of £ 2 8 0 m i l l i o n s . 2. G o v e r n m e n t e x p e n d i t u r e , in i t s e l f , i s n e i t h e r m o r e n o r l e s s i n f l a t i o n a r y t h a n a n y o t h e r kind of e x p e n d i t u r e . What r e a l l y m a t t e r s , s u r e l y , i s t h e f r a c t i o n of t h e g r o s s n a t i o n a l p r o d u c t d e v o t e d t o a l l t h e m a i n c a t e g o r i e s of e x p e n d i t u r e , p u b l i c a n d p r i v a t e . Provided t h a t t h i s f r a c t i o n i s n o t e x c e s s i v e , t h e n it m a y v e r y w e l l be q u i t e a p p r o p r i a t e for a p a r t i c u l a r i t e m of G o v e r n m e n t e x p e n d i t u r e t o r i s e as the economy expands. I t h i n k it c a n b e s h o w n t h a t w e a r e s p e n d i n g r a t h e r l e s s t h a n 3 p e r c e n t of t h e g r o s s n a t i o n a l p r o d u c t on e d u c a t i o n . T h e s c h o o l p o p u l a t i o n w i l l be i n c r e a s i n g in t h e n e a r f u t u r e a n d w i l l c o n t i n u e t o r i s e u n t i l 1 9 6 0 / 6 1 , but s o , o n e h o p e s , w i l l t h e g r o s s n a t i o n a l product. So f a r f r o m b e i n g e x c e s s i v e I s h o u l d m y s e l f h a v e t h o u g h t t h a t it c o u l d b e q u i t e s t r o n g l y a r g u e d t h a t t h i s i s an i n s u f f i c i e n t p r o p o r t i o n if o u r p r o f e s s i o n s a r e t o b e t a k e n s e r i o u s l y . Speaking for m y s e l f , t h e r e f o r e , I a m n o t u n d u l y a l a r m e d a t m y own D e p a r t m e n t s s h a r e of t h e i n c r e a s e d C i v i l E s t i m a t e s . 3. I now t u r n t o t h e a c t u a l p r o p o s a l s in t h e C h a n c e l l o r ^ p a p e r (C. (57) 1 6 ) . I wish vigorously to contest the proposition that a s o u n d e c o n o m y c a n be a s s i s t e d b y p e n a l i s i n g p a r e n t h o o d . I should indeed r e g a r d such a p r o p o s i t i o n a s quite c o n t r a r y t o everything t h a t has been said about our future policy or the opportunity State. 4. If it is p r o p o s e d t o c u t f a m i l y a l l o w a n c e s and a l s o t o a t t a c k f r e e s c h o o l m i l k and s u b s i d i s e d s c h o o l m e a l s , t h e effect w i l l b e cumulative. In a d d i t i o n t o l o s i n g 8 s . on t h e s e c o n d c h i l d , t h e t w o ­ c h i l d f a m i l y would h a v e t o find a n a d d i t i o n a l 2 / 2 d . a d a y for s c h o o l m e a l s and m i l k . T h e effect on t h e w e e k l y b u d g e t of s u c h a f a m i l y above the free m e a l s i n c o m e s c a l e limit will be a net addition of n e a r l y 1 9 s . a w e e k . S o c i a l l y I s h o u l d r e g a r d t h e c o m b i n e d effect a s m o s t s e r i o u s , and I s h o u l d q u e s t i o n w h e t h e r w e c o u l d h o l d it politically. 5. T h e S c h o o l M e a l s S e r v i c e i s u t i l i s e d in d i f f e r i n g d e g r e e s in d i f f e r e n t p a r t s of t h e c o u n t r y , but w h e r e v e r it is u s e d it c a n be s a i d w i t h c o n f i d e n c e t h a t it o p e r a t e s d i r e c t l y for t h e b e n e f i t of t h e child. T h e s c h o o l m e a l g o e s into t h e c h i l d ' s s t o m a c h . The service is m o s t used w h e r e v e r c h i l d r e n live a long way from school. The p r o p o s a l t o c h a r g e t h e full e c o n o m i c c o s t w i l l , t h e r e f o r e , s t r i k e m o s t h a r d l y t h e a g r i c u l t u r a l w o r k e r who i s a l r e a d y one of t h e l e a s t w e l l r e w a r d e d in t h e c o m m u n i t y . An e a s i n g of t h e i n c o m e s c a l e s for f r e e m e a l s c a n n o t h e l p t h e n o r m a l w a g e - e a r n e r . T h e r e w o u l d t h u s b e a big i n c r e a s e in t h e v e r y s m a l l n u m b e r of c h i l d r e n w h o n o w t a k e s a n d w i c h e s t o s c h o o l . T h i s w o u l d b e b a d for t h e m a n d b a d for t h e s o c i a l life of t h e s c h o o l . T a k e n a s a w h o l e , I d o not t h i n k t h a t t h e p r o p o s a l w o u l d b e v i e w e d e i t h e r at h o m e o r a b r o a d a s a c o u r a g e o u s m o v e . 6. In J u n e t h e C a b i n e t d e c i d e d n o t t o i m p o s e a n y i n c r e a s e b e y o n d a n a d d i t i o n a l I d . p e r d i n n e r w h i c h c o u l d be d e f e n d e d w i t h i n t h e e x i s t i n g p o l i c y of m a k i n g t h e c h a r g e c o v e r t h e c o s t of food ( C M . ( 5 6 ) 4 3 r d Conclusions). The c i r c u l a r which announced this i n c r e a s e stated ­ " T h e M i n i s t e r h i m s e l f i s c o n v i n c e d of t h e v a l u e of t h e s e r v i c e a s it e x i s t s t o d a y ; h e w o u l d not w i s h t o s e e a n y r a d i c a l a l t e r a t i o n in i t s p r e s e n t p a t t e r n . " 7, I now t u r n t o t h e q u e s t i o n of s c h o o l m i l k , w h i c h i s a t p r e s e n t e n t i r e l y f r e e . My o b j e c t i o n s t o an i n c r e a s e in t h e c h a r g e for t h e m e a l w o u l d a p p l y e q u a l l y t o a c h a r g e for m i l k . 8. M o r e o v e r , t h e i m p o s i t i o n of s u c h a c h a r g e w o u l d r a i s e s e r i o u s a d m i n i s t r a t i v e d i f f i c u l t i e s . At p r e s e n t t h e d i s t r i b u t i o n of m i l k w i t h i n t h e s c h o o l c a u s e s l i t t l e o r no p r a c t i c a l d i f f i c u l t y . If a c h a r g e w e r e I m p o s e d it would b e n e c e s s a r y t o m a k e a r r a n g e m e n t s for t h e w e e k l y c o l l e c t i o n f r o m e a c h c h i l d of s m a l l s u m s of m o n e y , a n d t h e s e s u m s w o u l d h a v e t o b e p r o p e r l y a c c o u n t e d f o r . T h e r e w o u l d n e e d t o be a r r a n g e m e n t s for s e e i n g t h a t t h e m i l k w a s d r u n k b y t h e c h i l d r e n w h o h a d p a i d for i t . 9. It is a l s o n e c e s s a r y t o b e a r in m i n d t h e a t t i t u d e of t h e t e a c h i n g p r o f e s s i o n . U n d e r t h e p r e s e n t law t h e s u p e r v i s i o n of c h i l d r e n i s t h e o n l y d u t y w h i c h t e a c h e r s c a n b e r e q u i r e d t o p e r f o r m in c o n n e c t i o n w i t h school m e a l s or milk. 1 0 . M a n y of t h e m do u n d e r t a k e o t h e r t a s k s ( e . g . t h e c o l l e c t i o n of d i n n e r m o n e y ) v o l u n t a r i l y . But t h e r e h a s b e e n s o m e u n r e s t in t h e p r o f e s s i o n r e c e n t l y o v e r t h i s m a t t e r and it i s n o t p r o v i n g e a s y t o h o l d t h e p r e s e n t p o s i t i o n . T h e c h a n g e s p r o p o s e d , w h i c h w o u l d add a f u r t h e r a n d e s p e c i a l l y i r r i t a t i n g n e e d t o c o l l e c t p e n n i e s for s c h o o l m i l k w o u l d c e r t a i n l y e x a c e r b a t e the situation and might lead to a g e n e r a l refusal b y t h e t e a c h e r s t o c o n t i n u e t o p e r f o r m a n y v o l u n t a r y t a s k s in c o n n e c t i o n w i t h m e a l s o r m i l k . If t h i s h a p p e n e d t h e s e r v i c e c o u l d b e m a i n t a i n e d o n l y b y c o e r c i v e and c o n t e n t i o u s a m e n d i n g l e g i s l a t i o n o r b y a p p o i n t i n g n u m e r o u s a d d i t i o n a l p a i d staff at a v e r y c o n s i d e r a b l e c o s t , for w h i c h no a l l o w a n c e h a s b e e n m a d e in t h e e s t i m a t e of s a v i n g s . 11. F i n a l l y , c o n s i d e r t h e effect o n w a g e c l a i m s . M y own c o n v i c t i o n i s t h a t t h e r i s e in t h e c o s t of p a r e n t h o o d w o u l d r e s u l t in a n o v e r p o w e r i n g d e m a n d by t h e T r a d e Unions for h i g h e r w a g e s and t h a t , s o far f r o m h e l p i n g us t o b a l a n c e o u r e c o n o m y , t h e s e p r o p o s a l s w o u l d in f a c t p r o d u c e i n d u s t r i a l u n r e s t on a s c a l e w h i c h c o u l d n o t f a i l t o i n t e r f e r e w i t h o u r e c o n o m i c l i f e . If t h e w a g e d e m a n d s w e r e m e t w e s h o u l d h a v e t o f a c e a f u r t h e r i n s t a l m e n t of i n f l a t i o n , s i n c e d e m a n d s a r e a l w a y s out of p r o p o r t i o n t o t h e a c t u a l i n c r e a s e s in t h e f a m i l y b u d g e t and a p p l y t o t h e u n m a r r i e d a s well as the m a r r i e d . H. M i n i s t r y of E d u c a t i o n , W . l . 30th J a n u a r y , 1957