European Policy: Memorandum by the Secretary of State for Foreign Affairs.

Page 1066

* Mr. Armstrong resigned from the Committee on 7th June, 1949 on taking up a new

appointment.

527

LOCAL

FIRST REPORT OF THE PGOVERNMENT MANPOWER COMMITEE

To the Rt. Hon. SIR STAFFORD CRIPPS, K.C., M.P., Chancellor of the

Exchequer.

TERMS OF REFERENCE

1. We were appointed in January, 1949 with the following terms of reference:

"To review and co-ordinate the existing arrangements for ensuring economy in the use of manpower by local authorities and by those Government Departments which are concerned with local government matters; and to examine in particular the distribution of functions between central and local government and the possibility of relaxing departmental supervision of local authority activities and delegating more responsibility to local authorities."

The scope of the Committee is confined to England and Wales. We under- stand that a Committee with similar terms of reference has been appointed by the Secretary of State for Scotland.

2. We now have the honour to present our First Report, which covers our work from the date of our appointment up to 16th November, 1949.

INTRODUCTORY STAGES

3. It may be useful to record briefly the circumstances in which the Com- mittee came to be appointed. In June, 1947 the Ministry of Health circu- lated to local authorities Circular No. 96/47 inviting them "to undertake an immediate review of the organisation and staffing of all departments and services for the administration of which they are responsible with the object of effecting all possible economies and making the fullest practicable reduc- tion in the numbers employed ". The circular drew attention to the heavy tasks which local authorities had been given in carrying out essential ser vices and went on to say that “ every endeavour will accordingly be made, in carrying out the Government's policy, to limit the demands made upon local authorities to what is reasonable, and it is the desire of the Govern- ment to simplify so far as possible the administrative arrangements as between the Departments and the local authorities in connection with these services

•

4. Soon afterwards the local authority Associations* were invited by the Ministry of Health to attend a conference to discuss this circular. At the conference, which was held in July, 1947, and in a subsequent memo- randum which they forwarded to the Ministry of Health in March, 1948, the representatives of the Associations suggested that the extent to which Government Departments concerned themselves with the details of local government added materially and unnecessarily to the administrative work of both central and local government and that only by a substantial diminu- tion of departmental controls could a really effective reduction be made in the size of local authority staffs. Suggestions were made in the memo- randum of a number of ways in which controls might be loosened. After consulting the other Departments most concerned, the Ministry of Health replied to the Associations in October, 1948, conveying the views of these

County Councils Association, Association of Municipal Corporations, Urban District Councils Association, Rural District Councils Association, London County

Association

unty and Metropolitan Boroughs $lakding bidt Committee.

Council

67134

Departments and stating that in general they would be glad to be given further information abog the 1spects of their grolf which in practice proved most burdensome and to enter into detailed discussions about adminis- trative procedures. The Associations then decided to appoint a joint steering committee to guide these discussions with Government Departments.

APPOINTMENT OF THE COMMITTEE

5. This was the stage which had been reached when in December, 1948, in the course of a review of the general manpower situation and in particular of the heavy demands made on manpower by central and local administra- tion, the Government decided to invite the local authority Associations (including the Association of Education Committees) to join departmental representatives in a comprehensive examination of the whole problem. We were accordingly appointed in the following month with the terms of refer- ence set out in paragraph 1.

6. We decided at the outset that since our main problem was one which concerned central and local government equally, we could best undertake our task as a gathering of representatives with individual views, in which ideas and comments could be freely exchanged, rather than as two negotiat- ing teams. This decision has been abundantly justified by the co-operative and amicable spirit in which our discussions have taken place.

7. We felt that there was force in the suggestion, which had been made earlier by the Associations, that the manpower problem could best be tackled in the first instance by examining the relations between Government Depart- ments and local authorities and by considering what scope there was for reducing the extent of central control. We decided therefore to concentrate in the first place on the second half of our terms of reference and to examine in detail the various forms of departmental supervision over local authorities.

APPOINTMENT OF SUB-COMMITTEES

8. It was clear that such a detailed examination could not satisfactorily be carried out by the Committee itself, and we accordingly appointed for this purpose five sub-committees to examine the local government services super- vised by the Departments concerned. These sub-committees were com- posed in each case, under the Chairmanship of the departmental representa- tive on the main Committee, of a number of government officials (usually between six and nine) and about an equal number of local authority officers selected by the Associations for their experience in the service concerned. One of the latter acted as convener of the local authority representatives on each sub-committee. The representatives of the Treasury Organisation and Methods Division, the Ministry of Labour and National Service and the Post Office, who were appointed to the Committee as "independent members, also took part in the work of the sub-committees.

9. In some cases, either because a single Department was concerned with more than one local government service or because of the wide range of questions involved, sub-committees themselves delegated detailed studies to panels, which were similarly composed, usually under the Chairmanship of the official responsible in the Department for the administration of the service in question. In all over 90 local authority and about 160 departmental officers have up to the present

of these various 489; 10 Present time takributed to the results embodied

in our report.

MEMORANDUM OF GUIDANCE

understanding what was asked of them, we prepared a Memorandum of 10. In order that the sub-committees should start this work with a clear Guidance (which is attached as Appendix 1) setting out the main principles in the light of which we were agreed that the existing forms of control ought to be reviewed. The memorandum also suggested a number of aspects which required special consideration. The sub-committees were appointed in March, 1949, and submitted either interim or final reports for consideration by us at a meeting in July.

WORK OF THE SUB-COMMITTEES

▼

11. The reports of the sub-committees bore witness both to much hard work by all concerned and to an impressive. spirit of co-operation which was reflected in the wide extent of the agreement which had been reached. The results of the Committee's deliberations on the basis of these reports are summarised in Appendices II to VI. These set out the revised arrangements for central and local government procedure which the Committee now recom- mends for the future.

12. The degree of control retained by Ministers varies by reason of the nature and circumstances of each service and this has precluded uniformity in all services. But the revised arrangements represent a considerable simplification or loosening of

or loosening of departmental control and recognise, in accordance with the Memorandum of Guidance, "that local authorities are responsible bodies competent to discharge their own functions and that . they exercise their responsibilities in their own right

We wish to emphasise that if the new arrangements are to be a success, they must be supported by close and continuous co-operation and informal discussion between Government Departments and local authorities.

GENERAL QUESTIONS

•

13. A number of general points were also raised by the sub-committees in the course of their work, which were of concern to more than one Department and in some cases affected Departments not represented on the Committee. These fall under four heads:-

(i) Grant claims and loan sanction procedure

Several of the points so raised related to the administration of grants and to the procedure for obtaining loan sanction. We accordingly appointed a sub-committee on Grant Claims and Loan Sanction Pro- cedure to consider these and any other points raised in this field. This sub-committee has reached agreement on revised administrative arrange- ments, and its report, which we have endorsed, is reproduced with our additional recommendations as Appendix VII.

(ii) Control of building resources

Other points were also raised relating to the control of building work under Defence Regulation 56A, to the system of quarterly allocations of building materials, and to the starting-date procedure. These are for the most part temporary controls and are closely related to the Govern- ment's general economic policy. We accordingly appointed a sub- committee on the Control of Building Resources, to which the Ministry of Works and the Central Economic Planning Staff were invited to appoint representatives. This sub-committee met under the shadow of the economagerili following evaluation anaga kioo Offe 19ernment

67134

528

announcement that drastic reductions in the investment programme will be necessary, it any prop the to formulate

proposals at

for control over the building work of local authorities. It has, however, made certain suggestions as to ways in which the procedure of the departmental controls over local authorities' building operations might be eased, and the departmental members of the sub-committee have undertaken to consider these suggestions carefully and to introduce any simplifications which may be found possible while paying due regard to the over-riding necessities of the economic situation. The sub-committee will consider the matter further as soon as this departmental examination has been completed.

it pg z og f juncture-commovernment's

(iii) Land transactions

A number of general points were also raised in the sub-committee reports concerning the acquisition, appropriation, leasing, and sale of land. These are, for the most part, long-term changes which will involve legislation. We have asked the Local Government Services panel of the Ministry of Health sub-committee to consider these questions further, bringing into their discussions representatives of any other Departments as may seem desirable.

(iv) Valuation and the use of the District Valuer

Our local authority members have urged the view that there should be some modification of the present Government practice of requiring the approval of District Valuers in all cases of acquisition or sale of land and property by local authorities, whether or not the authority has its own valuation staff. The departmental representatives, while recognising that this is a matter on which many local authorities feel strongly, have pointed out that it touches on a major issue of Government policy, and they suggest that it is not a matter on which the Com- mittee could appropriately express any view, still less take any decision. They have expressed their willingness, however, to hear the views of the local government representatives.

APPLICATION OF AGREED CHANGES

14. In some cases it has already been possible to bring into force the new arrangements which have been agreed upon. For example, Ministry of Health Circular No. 75 of 1949 gives effect to the recommendation in paragraph 6 of the Housing panel summary (Appendix III, page 11). In the majority of cases, however, the changes involve a concerted revision over quite a wide field and we suggest that the aim should be to bring as many of them as possible into operation in time to be effective for the financial year 1950-51. We think that it will usually be desirable for the sub-committees and panels to remain in being during the existence of our Committee to consider how and when the agreed changes can best be put into effect and to help Departments to work out the practical details, for example by discussing the drafts of new manuals and circulars. This will, however, in no way supersede the Departments' normal practice of consulting the local authority Associations on such matters.

FUTURE WORK OF THE COMMITTEE

15. Having so far concentrated_on the possibility of relaxing depart- mental superagen lo local fauority achages and delegating more respon- sibility to local authorities ", we propose now to turn our attention to the

529

first part of our terms of reference: "To review and co-ordinate the existing arrangements for ensuring omy in the use of manpower by local authorities aph by those Government Departments which fare concerned with local government matters In this connection we intend to consider the methods of procedure and organisation for handling the various services at the local authority end. The local authority Associations, at our request, are considering the best approach to this problem and have already set up a sub-committee to investigate, within the framework of the existing law, the procedure for delegation of from county councils to district powers councils and other bodies. They are also enquiring into the machinery of claims by local authorities against one another for services rendered or mutual benefits provided, and are proposing to stimulate the extension to the local government field of Organisation and Methods techniques, which have been practised in the Civil Service for many years. We feel certain that our work to date will encourage local authorities to renew their efforts in examining staffing and manpower problems and to review their arrangements for ensuring that staff is economically used. We are assured that steps are being taken to carry out a similar review in the Government Departments concerned, the results of which we shall have an opportunity to consider. We also intend to obtain estimates of the manpower savings made possible both in local authorities and in Government Departments by the revised administrative arrangements which we recommend. We shall report further on these matters in due course.

Signed on behalf of the Committee:

P. D. PROCTOR, Chairman.

ARTHUR HOBHOUSE, Vice-Chairman.

9th December, 1949.

APPENDIX I

Memorandum of Guidance to Sub-Committees

I. INTRODUCTION

The Local Government Manpower Committee was set up with the follow- ing terms of reference :-

It is hoped that the sub-committees, in considering the questions which arise from the main objective described in the next paragraph, will give the Committee their advice on any matter falling within its terms of refer- ence, whether it relates to artment

procedure or to both enginental procedure 59 local government

67134

II. MAIN OBJECTIVE

cover

To simplify the methods of departmental supervision are local govern- ment activities reduce the need for and the extent of such supervision, and to ensure, wherever possible, that a greater measure of responsibility rests on local authorities.

III. GENERAL APPROACH

To recognise that the local authorities are responsible bodies competent to discharge their own functions and that, though they may be the statutory bodies through which Government policy is given effect and operate to a large extent with Government money, they exercise their responsibilities in their own right, not ordinarily as agents of Government Departments. It follows that the objective should be to leave as much as possible of the detailed management of a scheme or service to the local authority and to concentrate the Department's control at the key points where it can most effectively discharge its responsibilities for Government policy and financial administration.

IV. DESIRABLE METHODS TO BE EMPLOYED WHERE CENTRAL

APPROVAL IS REQUIRED

(i) Government Departments to issue, where appropriate, broad general guidance by way of circulars or manuals indicating what the Government wants the local authorities to do and specifying any conditions which must be satisfied by a scheme or service if it is to receive Government approval and qualify for grant. (ii) The local authorities to submit (not more frequently than once a year) programmes showing the work proposed to be carried out and the estimated cost.

(iii) The appropriate Departments to give formal approval of the pro- grammes, with or without alteration, this approval to constitute an authorisation to proceed with the programme without further consultation, except for any particular projects (or classes of projects) which may be explicitly reserved for individual consideration.

(iv) The approval given in (iii) to carry with it normally-and subject to the same exceptions-an assurance that any loan sanction required for the execution of the programme, and the appro- priate rate of Exchequer grant where this applies, will be given. Where an increase in the estimated cost is involved, further approval must be sought.

(v) In those cases which are reserved for individual consideration the object should be to give the approval, with or without altera- tion, at a single stage, not in instalments at different stages in the execution of the scheme.

(vi) The local authorities to make progress returns and returns of ex- penditure on services in prescribed form and at prescribed periods, which should not be too frequent.

(vii) Arrangements for inspection and comment on the services by

officers of the central Departments to continue.

(viii) Informal contact to be maintained at all times between adminis- trative and technical officers of the central and local authorities ip grder that exyfrifng may be pooled and futubunderstanding

ensured.

V. ASPECTS TO BE SPECIALLY CONSIDERED

530

(i) The main field to be covered is that of the normal permanent rela- tionshange betweeno fola19 authorRagear07mall Departments rather than the temporary controls necessitated by the present conditions of shortage. There may, however, be subjects in the latter field which would repay examination, particularly the controls over local authorities' building work, where it should be possible to introduce siraplified methods similar to those which have recently been applied to industrial building work. (ii) The achievement of the objectives may entail amendment of statutes, statutory regulations or administrative arrangements. Obviously the last-named present the easiest problem and will no doubt be the first on which action can be taken, but the whole field should be reviewed on merits in the light of the considerations suggested above. If the results of the examination point to the amendment or withdrawal of existing regulations or statutory provisions, action to secure this should then be considered. (iii) It may be convenient to consider capital schemes and continuing services separately. Generally speaking, the latter should pre- sent the clearest opportunity for reducing detailed supervision to a minimum and relying on the approval of periodic programmes.

(iv) There is a broad distinction in principle between departmental responsibility for policy and departmental supervision over the technical aspects of a scheme. The one admittedly shades into the other, and it may not always be easy to apply the distinction in practice. The Department has an undoubted responsibility to ensure that Government policy is carried out, and the degree of control which it must retain to enable it to discharge this responsibility represents an irreducible minimum beyond which relaxation cannot go. If, however, the policy and technical requirements of the Government are clearly indicated in advance by the issue of circulars or manuals, and if the local authority certifies that these requirements are fulfilled in the particular project under consideration, while full contact is maintained in current administration between officers of the central and local government, there should be considerable scope for reducing or eliminating departmental supervision on the technical side and avoiding the irritation and waste of manpower involved in super- imposing a detailed examination by the professional staff of the Department on the work already done by the professional staff of the local authority.

(v) The maintenance of effective financial control over grant-aided ser- vices is a requirement which runs through all the aspects pre- viously mentioned and will need careful definition in each field. It is a subject in which the House of Commons, through the Public Accounts Committee, takes a jealous interest, and there is a clear duty on the appropriate Department to ensure that a proper and economical use is made of the taxpayer's money. But in general there is no reason why the same principles should not be applied here as in the rest of the field. In particular, there may be scope for employing the method of laying down- and enforcing maximum limits of expenditure or contract prices

basph on the estimates gubmitted by the calfagrity in its periodo programmes.

APPENDIX II

Page 107fe1Office Subpgmmitte4 of 1097

Chairman : Mr. W. S. Murrie, C.B.

Police Panel

Convener: Mr. J. Lythgoe, C.B.E.

(City Treasurer, Manchester).

Chairman: Mr. S. J. Baker, C.B.

Children Panel

Chairman : Mr. J. Ross.

Convener : Mr. E. Ainscow (Children's Officer, London County Council).

Fire Panel

Chairman: Mr. R. S. Wells.

Convener: Mr. T. J. Jones, O.B.E. (Director of Establishments, London County Council).

REVISED BUILDING PROCEDURE

1. Each local authority will submit an annual programme of works showing the expenditure which it proposes to incur on:-

(a) Works of repair and maintenance.

(b) Works of adaptation.

The expenditure which it is proposed to incur on works of adaptation and new buildings will be suitably itemised in the programme.

2. (a) Police Building

It is proposed that, subject to approval of the annual programme, local police authorities should be free to carry out, without further reference to the Home Office, works of maintenance and repair and other works costing not more than £5,000. It is assumed that local police authorities will continue to employ qualified architects and that there will be the closest informal consultation with the Home Office.

(b) Children's Homes Building

It is proposed that, subject to approval of the annual programme, local authorities should be free to carry out, without further reference to the Home Office, works of maintenance on children's homes and adaptations of existing children's homes costing not more than £2,000 which do not involve an increase in the number of places for children or a change of purpose. These arrangements will apply for an interim period up to the end of 1952, pending the issue of manuals of guidance on the construction and adaptation of children's homes, and will be subject to review before the end of this interim period in conjunction with the local authorities if the Home Office so request.

A higher proportion than hitherto of the annual sum allocated to each local fire authority for building works will be fat it free disposal for works of maintenance and adaptation.

531

3. The procedure for obtaining approval for works other than those covered by paragraph 2 above will be simplified on the following lines :—

(a) The aga lauthor wall Zubmit Bagach pojeof

plans, a

brief or outline specification, and an estimate of the cost, and any proposals by the Home Office for modifications will be made at this stage;

(b) the local authority will not normally have to refer the project to the Home Office again unless there has been a material departure from the sketch plans or unless the tender which it is proposed to accept exceeds the estimate of cost by more than five per cent.; (c) when application is made for loan sanction the local authority will forward with the application a note of the tender price;

(d) the local authority will in due course furnish the Home Office with a note of the final cost in cases where it exceeds the approved estimate and with a copy of the final plans if required for record or grant apportionment purposes.

4. The Home Office are considering the question of issuing further model plans for certain types of buildings.

5. As regards police and fire service housing the Home Office will conform to the revised housing procedure of the Ministry of Health (see Appendix III).

6. Police

OTHER REVISED ARRANGEMENTS

(a) The Home Office will replace the present annual return of pensions awarded by police authorities by a less detailed statistical return to show the incidence of pension charge.

(b) The Home Office will review the criminal statistics with a view to considering whether the burden which their compilation throws on the police could be lightened.

(c) It is desirable on grounds of administrative economy to pay police on a monthly rather than on a weekly basis if the consent of the rank concerned is obtained and no hardship is created.* (d) The sub-committee will consider the question of control over police pay, emoluments and conditions of service when Part II of the Oaksey Committee's report is available, and it will also consider the detailed working of the present arrangements for the control exercised by the Home Office over the police in other fields.

7. Children

(a) The Home Office will replace the existing control of expenditure on an individual child boarded out by a more general financial control related to the total number of children boarded out. This will obviate the need for reference to the Home Office in particular

cases.

(b) The Home. Office will issue manuals of guidance on provision for the care of children, for example, on standards of accommodation and on the organisation of reception centres and residential nurseries.

*The recently made Police Regulations give effect to the principle of this recommendation by providing that members of the police force shall be paid at such intervals as the police authority may fix, that the police authority may fix different intervals for different classes, and that in filingothelintergal for 109 class the pig authority shall have Tegard to the

wishes of the members of that class.

(c) The Home Office will endeavour to secure the establishment of wage-fixing machinery for the staffs of children's homes, approved pchools and remand homes; if possible, such staff will be brought within some existing negotiating machinery.

(d) The Home Office will consider the simplification of procedure for the disposal of parental contributions collected by local authorities.

(e) The Home Office will consider the introduction of greater uniformity in control of expenditure on children's homes, approved schools and remand homes,

(f) Certain returns will be discontinued and the need for others will be

reviewed.

(g) The Home Office will consult the local authority Associations with

a view to discontinuing the war-time arrangement whereby 50 per cent. of any allowance payable by a Service Department or by the Ministry of Pensions, which is suspended while a child is maintained at public expense, is credited to the local authority concerned.

8. Fire Service

(a) The Home Office, in consultation with the local authority Associa- tions, will consider what can be done within the terms of Section 19 of the Fire Services Act, 1947 to simplify the procedure for the approval of establishment schemes and to allow for some measure of variation at the discretion of the fire authority.

(b) Prior approval for the purposes of grant will not be required in the case of a scheme for the installation of hydrants where the capital cost does not exceed £500, provided that no departure is contemplated from the prescribed standards.

become more easily available.

(d) Subject to the provisions of the establishment scheme and to com- pliance with requirement specifications approved by the Central Fire Brigades Advisory Council, no prior approval will be required for the conversion or adaptation of vehicles.

APPENDIX III

Ministry of Health Sub-Committee Chairman: Sir John Wrigley, K.B.E., C.B.

Housing Panel

Convener: Mr. Alexander Pickard,

C.B.E. (Town Clerk, Bristol).

Chairman: Mr. R. Stanton.

Health Services Panel

Chairman : Mr. N. C. Rowland.

Water and

Chairman: Mr. A. Titherley.

Convener: Professor W. M. Frazer, O.B.E. (Medical Officer of Health, Liverpool).

Sewerage Panel

Convener: Mr. F.

Mr. F. D. Littlewood (Town Clerk, Cheltenham).

Page 1 Legal & pregament Services Powet of 1097ittlew

Chairman : MP. H. F. Summers.

Convener: Mr. F. D.

(Town Clerk, Cheltenham).

HOUSING

1. The Ministry's approval of individual building sites selected by local

of formation

authorities (involving the sub individual local authori-

ties on Form Eng. 102) will be dispensed with. The Ministry will issue a memorandum of guidance explaining the object of the questions in Form Eng. 102, and will require from local authorities only a certificate signed by a competent person, stating that the memorandum has been followed for each site and that the authority is satisfied on the questions contained in Form Eng. 102.*

2. Local authorities may assume when the Ministry inform them of the number of houses they may build in any one year that, subject to any overriding change in Government policy, their approved current annual rate of house building may be repeated for at least three years on the understanding that they will have regard to cleared sites in their possession when estimating need for additional land.

Lay-out Schemes

3. (a) Sketch lay-out plans will be submitted to the Ministry, who will be assumed to have no comments on them unless these are made within 14 days of receipt.

(b) When the lay-out scheme has been prepared the local authority will submit an estimate of cost, with application for loan sanction, accompanied by a certificate that the scheme in its final form does not depart in principle from the sketch plan. If the estimate is approved loan sanction will be issued. Tenders may be accepted if they are not more than 10 per cent. in excess of the approved estimate, and additional loan consent will be given for an excess within that limit. Re-submission will be necessary if there is material departure from the sketch plan or if it is proposed to accept a tender above the 10 per cent. tolerance. House Construction

4. (a) Prior submission of house plans will be dispensed with and only a tender need be submitted, if a local authority certifies that the plans were prepared by, and will be carried out under the advice of, a qualified architect, and that the standards conform to the relevant manuals or circulars. There should be the closest informal consultation between architects of the Ministry and of local authorities. If a qualified architect is not employed, house plans must be submitted for examination.

(b) In loan sanctions issued for house building provision will be made for necessary margins on contract sums, but excess expenditure amounting to a variation in principle of the basis of the original tender must be submitted like the original tender. The same principles will apply to direct labour estimates.

5. The Panel will examine the monthly Housing Progress Report with a view to recasting and shortening it: certain regional forms will be further examined and a minor amendment will be made in the forms of claim for housing subsidy.

6. The present limits on expenditure which local authorities may incur on a requisitioned house or flat without the prior approval of the Ministry will be raised from £50 to £100 per dwelling for maintenance repairs and from £100 to £250 per dwelling for initial adaptations.

7. The Panel will consider in draft any instructions on improvements of houses which it is proposed to issue under the Housing Act, 1949.

* The detailed pplication of this new procedure is eng

0f 1997 considered by the panel.

Further consider

532

HEALTH SERVICES*

1. In their inspections of the day to day running of the local health services official correspond-

the Ministry's officers will be encouraged not to initiate e matters by

ence on relative minor matters of detail butge dispose of

discussion on the spot. Local authorities will have almost complete freedom in the matter of running expenditure; subject to the services being in accordance with the proposals approved by the Minister under Section 20 of the National Health Service Act, 1946 and, of course, to ultimate review by the District Auditor.

2. The present detailed examination by the Ministry of all capital projects will be dispensed with, except that, for the time being at any rate, plans for building health centres will continue to be submitted and examined in detail. Manuals of guidance on building works (though not standard plans) will be issued and local authorities will be encouraged to discuss their projects informally with the Ministry's officials at an early stage. Local authorities will in October - November of each year submit an annual programme of capital works (a) for the coming financial year and (b) which are being considered for later years. An undertaking will be required in the programme for the coming financial year that schemes will comply with any essential requirements laid down by the Ministry. Approval of this part of the programme will be on the understanding that competitive tenders will be invited and that any scheme will be referred to the Ministry again if the tender price exceeds the estimate by more than a specified percentage, or if a tender other than the lowest is accepted. The Ministry will reserve the right to hold back any particular scheme for detailed consideration. Neti- fication of proposals under preliminary consideration will constitute advance information for discussion and will commit neither side.

3. Where "joint user services are concerned (e.g. a combined school and maternity and child welfare clinic) negotiations with the local authority will be carried on by one central Department only: the local authority will refer the scheme to the appropriate Department, which will undertake any neces- sary consultations with the other interested Departments.

4. The provision of additional institutional accommodation for low grade mental defectives will enable local health authorities to employ their trained staffs engaged in domiciliary mental work and at occupation centres to much greater advantage. All parties concerned should watch carefully the development of the services for the care of mental patients living in the general community to avoid the risk of overlapping and waste of effort.

5. The visual inspection procedure in the administration of port health services is being reviewed by the Ministry.

6. The Panel is considering the control exercised by the Ministry over the appointment and removal of medical officers of health and sanitary inspectors.

7. The Ministry have arranged to discuss with the Ministries of Food and Agriculture and Fisheries and local authority representatives certain problems which arise from the administration of the Food and Drugs Acts. and the rodent extermination service.

WATER AND SEWERAGE

1. A short manual of guidance on procedure will be issued. Although primarily non-technical, it will include a few basic technical requirements.

* This panel deals with local health services provided under National Health Befice Act, at

Pa and Seption $1 of the

533

2. The issue of loan sanctions to large authorities for prospective expendi- ture on main-laying will be extended to include all authorities.

3. Loans fop prospective expenditure will be admissible for programmes of works of sewerage and works authorised by the Public Health or Local Acts on water courses, subject to certain specified conditions and exceptions. Extensions through which trade waste will be received may be included in applications for loan sanction for prospective expenditure, but special attention will be drawn in the manual of guidance to the difficulties involved in the reception of such waste.

4. When application is made for Exchequer grant for prospective expendi- ture, schemes will continue to receive individual consideration by the Ministry.

5. Capital schemes may in future be submitted for approval in principle in outline and the amount of information required may be limited to the bases of calculations, the fundamental assumptions on which the design is based, and drawings in sufficient detail to enable the Ministry to appreciate the general scope and nature of the scheme.

6. Where they are not required by statute, local inquiries will be reduced to a minimum by substituting informal visits by technical inspectors or, if an inquiry is thought to be necessary, by asking the local authority to advertise its proposals: the Ministry will then consider in the light of any objections received whether a local inquiry should be held.

7. In scrutinising schemes by district councils under Section 2 (2) of the Rural Water Supplies and Sewerage Act, 1944, county councils should limit their examination to the broad basis of design, general sanitary and financial considerations, and the desirability of co-ordination with adjoining

areas.

8. When building controls are removed it may be possible for the Ministry to issue loan sanction for the estimated cost of schemes approved in principle, leaving it to local authorities to select a tender, provided that the selected tender does not exceed the estimate by more than 10 per cent. (or 5 per cent. in the case of large schemes) and that if the lowest tender is not accepted the reason is given.

LOCAL GOVERNMENT SERVICES*

1. Informal discussion of projects at an early stage is to be encouraged and at this stage it will be considered whether phasing or programming is practicable, how much technical information will be required and whether outline plans only will suffice. All interested Departments should be represented at the informal discussion of a project.

2. Where they are not required by statute, local inquiries will be reduced: in appropriate cases the Ministry will ask the local authority to advertise its proposals and will hold an inquiry only if required on special grounds or if the weight of objection merits one. The Ministry will re-examine the practice of requiring shorthand notes to be taken at all Compulsory Purchase Order inquiries.

3. Where the Board of Trade does not support a local authority's proposal to establish a factory estate, but does not positively object to it on location of industry grounds, the Ministry will entertain the proposal if the authority wishes to go forward with it and to assume responsibility for the financial risks involved..

* This panel deals with miscellaneous matters, and capital works in services administered by the Ministry, otherghan fervidesQiscussed by other hels and National Assistance.

4. Government circulars should be printed in larger and better type and should state their purport plainly at the beginning. The periodical lists of circulars issued by the Home Office and the Ministry of Health should indicate their subject matter if 1994 and similar lists might be issued by

other Departments.

5. The law relating to private street works and to the disposal of the dead should be revised and simplified.

APPENDIX IV

Ministry of Education Sub-Committee

Chairman: Sir K.B.E., C.B.

William William

Cleary,

Convener: Dr. W. P. Alexander (Secretary, Association of Educa- tion Committees).

1. The sub-committee has considered in an interim report some of the changes in methods and machinery which follow from an examination of general principles of control, the Minister's duties entailing control, and the key points at which control is needed. Further possible changes will be considered in due course.

2. While the Minister has a general oversight of the field of education, it is recognised that he has six primary duties which determine the points at which it is necessary for him to exercise control:

(i) He must be satisfied that educational facilities and ancillary services

are provided in sufficient quantity and variety.

(ii) He must be satisfied that educationai establishments and ancillary

services are well managed, equipped, staffed and maintained.

(iii) He must ensure the proper freedom of parents, teachers and other

third parties.

(iv) He must be satisfied of the qualifications of teachers and medical officers to the extent necessary to safeguard their and the children's interest.

(v) He must control fees charged and awards and allowances made, to the extent necessary to safeguard the interests of local education and other school authorities, parents and students.

(vi) He must control the provision of educational premises.

3. The more important changes, so far recommended and accepted, in procedures for control which are necessary for carrying cut these duties are the following:-

(i) The use of manuals of guidance will be extended. They should, for example, give general guidance on principles to be observed in dealing with matters which affect the rights of individuals, such as the choice of a school, admission to secondary schools and the employment of children in entertainments. Correspondence on appeals would be greatly reduced if the Ministry and local education authority were each better informed about the prin- ciples on which the other is working and local education authori- ties will be invited to submit their general arrangements showing how they hoye interpreted the guidance gives in guch manuals in the light of the conditions obtaining in their area.

14(ii) In a number of instances the present requirements that individual Ritems should be submitted for approval will be withdrawn entirely

or replaced by the submission of general agrangements of annual programmes. Examples of this are

(a) Specific approval of detailed scales of fees for further

education will no longer be required.

(b) In the same field part-time day courses of a non-specialised

nature will not need approval.

teachers in employment over the age of 65.

(d) The character of the education provided in a school may, in future, be changed, e.g. from grammar to modern, without the Minister's prior approval.

(e) Prior approval will no longer be needed for the employ- ment of any medical officer for the ascertainment of certain categories of handicapped pupils, although it will still be required before a medical officer can be employed to examine children for educational sub-normality in certain cases or for ineducability.

(f) Approval will no longer be required before particular doctors may carry out a medical examination and treatment of handicapped children ascertained to be within certain categories.

(g) The present system by which the Minister considers indi- vidually all cases where education is to be provided otherwise than at school will be replaced by one where general control is exercised through annual estimates of expenditure.

(h) The Minister's approval for any school meals equipment, heavy or light, will only be needed where a fixed schedule of normal standards is exceeded: otherwise the authority will merely have to certify that their orders comply with the standards, as is the present system for light equipment.

(iii) The present system of probation, whereby a report in respect of every teacher has to be made to the Minister in order to satisfy him of the technical proficiency of the teacher in the first year of service, is being replaced by a new procedure, which will substantially reduce the administrative work involved, while re- taining the essential purposes which the period of probation is designed to serve.

(iv) The system of prior approval for school health service arrange- ments will be replaced by a system under which information will be given to the Ministry annually after the event. The Ministry's function will be limited to inspection and a general financial control exercised through an annual estimate. Approval will not be required for the acquisition of any school medical equipment. As a result of the recommendations on building procedures (sub- paragraph (vi) below) the detailed control of school clinic building will practically cease.

(v) In the acquisition of sites the stage of approval in principle will be cut out and the Minister will be prepared to give his direction that planning permission shall be deemed to be granted when formal approval is given to the acquisition of the site, instead of Page 1081 of 1097 Page 1081 of 1097

534

at the final stage.* Permission given at this stage will be subject to the subsequent approval procedure of the Ministry relating to building.

(vi) For Buiging kofthe present Bystem 10f8filing9annual pro- grammes for projects of £5,000 and over will be continued and programmes for works in connection with school meals will cover projects of £2,000 and over instead of £1,000 and over. It is the aim to reduce the Ministry's formai scrutiny of plans to a minimum so as to release the Ministry's officers increasingly for informal consultation in the planning stages, for inspection of completed buildings from the point of view of educational suit- ability, cost, and building technique and to undertake research: the Ministry will therefore revise and extend the guidance given to authorities on cost, standards of accommodation and per- formance and availability of building labour and materials. In the primary and secondary field (including special schools) the guidance will continue to include building regulations. In the field covered by the building regulations the Ministry will, as soon as the revised regulations and other guidance have been issued, limit their formal scrutiny of plans to covering planning permission* and exemption from building byelaws.

(vii) Amending legislation should be introduced so that local education authorities instead of the Minister would make the articles of government for voluntary secondary schools and would not, as now, require his specific approval for the articles which they make for county secondary schools. The freedom of managers, governors and teachers would be secured if the Minister indicated a minimum of responsibilities to be exercised by them and if managers or governors were given a right of appeal to him in the event of a dispute.

APPENDIX V

Ministry of Town and Country Planning Sub-Committee

Chairman: Dame Evelyn Sharp, D.B.E. Organisation and Administration Panel

Chairman : Mr. E. S. Hill, C.B.

the

Convener: Sir Howard Roberts,

C.B.E., D.L. (Clerk

(Clerk of London County Council).

Technical Activities Panel

Chairman : Mr. D. P. Walsh, C.B.

Convener: Mr. E. H. Doubleday

(County Planning Officer, Hert- fordshire).

Finance

Panel

Chairman: Mr. A. B. Valentine,

C.B.

Convener: Mr. R. S. McDougall (County Accountant, Hertford- shire).

ORGANISATION AND ADMINISTRATION

1. The consultations between local planning authorities and Government Departments, which precede the determination of applications for develop- ment, or which are essential to the preparation of the development plan, will be simplified.

*This will noP bereggings whilf the experimer gemtioned inspiregaph 3 of the Organisation and Administration section of the Town and Country Planning Sub-Com- mittee's report is in force (see Appendix V).

2. They Town and Country Planning Act, 1947 should be amended to simplify the present scheme of tree preservation by substituting a right of the ownerpta challenge anf Order for the present obligagion of local autho- rities to obtain the Minister's confirmation of the Order. Meantime the procedure will be shortened to the minimum required by the Act and the form of Orders will be simplified. As regards felling licences, there should be close informal relations between Planning Officers and Area Officers of the Board of Trade, and local authorities should speed up their existing procedure.

3. The relevant regulations will, as an experiment, be modified so as to provide that planning permission shall be deemed to be granted in respect of any development by a local planning authority within its own area, it being understood that authorities will themselves bring to the Department's attention before undertaking any development carry out such consultation with interested Departments and other persons as would have been appropriate had the development been the subject of an application for permission made to them. The Minister will retain the power to call for information about the authority's proposals and to require the submission to him, in particular cases or classes of case, of a formal application for planning permission; such an application will automatically be required in any case where the development would conflict with any direction under Article 6 of the General Development Order restricting the grant of planning permission, or would, if the subject of an application, have been referred to the Minister in accord- ance with a direction under Section 15 of the Town and Country Planning Act, 1947. The present provisions relating to buildings of special architec- tural and historic interest will be maintained.

any wases at national interest or public controventerested

4. A working party has been set up to examine the range of applications for permission dealt with by planning authorities and to make recommenda- tions as appropriate for extension of the classes of development which may be carried out without the need for an express application.

TECHNICAL ACTIVITIES

1. In scrutinising development plans the Ministry will not duplicate the work of the technical staffs of local planning authorities, but will confine their attention, subject to the obligation to enquire into representations received from members of the public, to the main features of the development plans.

2. The Ministry will not insist on absolute uniformity of method in pre- paring development plans where alternative methods preferred by local planning authorities will give the same results with a saving of time.

3. Certain amendments were made to the draft Circular on Report of the Survey.

4. The information at present required by the Ministry in connection with the areas defined in development plans as areas of comprehensive develop- ment is necessary and the Ministry should be given similar information when an authority wishes to have the Minister's view on the planning proposals underlying an application under Section 1 of the Town and Country Plan- ning Act, 1944.

5. The Ministry will consider:-

(i) The possibility of modifying the administration of the provisions Hang Afquisitions 1 during the

Pagülg 3% finiations

535

Period of Restrictions) which at present obliges local authorities to carry out their acquisitions in a piece-meal fashion. (ii) The proposal that local authorities should

of the need

to defend their projects at inquiries at TWA OLIND ages, once

on declaration or designation and again on actual compulsory purchase.

6. Local planning authorities should examine their organisations dealing with development control in order to make sure that this work does not take up too much of the time of their technical staffs and divert resources from the longer-term duty of preparing a development plan.

FINANCE

1. With regard to the administration of Section 94 of the Town and Country Planning Act, 1947 :-

(a) No special measures to ease the Ministry's control can usefully be taken in cases involving compensation arising out of planning actions of local authorities under Part III and Part VIII of the Town and Country Planning Act, 1947 or acquisition under Section 19, where the local authority is obliged to purchase land on refusal of permission to develop. In Section 19 cases con- firmation of the purchase notice requiring the local authority to purchase the interest in the land may, unless otherwise stated at the time, be taken as indicating approval in principle for grant.

(b) In the case of acquisitions other than under Section 19, annual programmes (specifying the parcels of land proposed to be acquired, those which can be acquired by agreement, the pur- pose of the acquisition and the authority for it, together with estimates of the cost of acquisition, clearing and loss or gain) will be submitted not later than 1st October for grant approval in principle where the size of the programme justifies that course, and once approved (or approved as amended) no further refer- ence need, save in exceptional circumstances, be made to the Ministry in respect of grant until the grant claim is submitted. (c) A single block consent to acquisitions by agreement under Section 40 of the Act will be given for those items in the annual programme marked for acquisition in that manner.

(d) In the case of acquisitions submitted otherwise than as part of an annual programme, approval for grant will be given concurrently with the decision on the Compulsory Purchase Order or with the application under Section 40 for consent to acquisition by agreement.

2. The Ministry will in due course review the regulations on the adminis- tration of Section 93 of the Town and Country Planning Act, 1947 (which provides for Exchequer grants in respect of acquisition and clearing in redevelopment areas) when adequate experience has been gained of the administration of the section.

3. The Ministry will in due course review the working of Section 19 of the Town and Country Planning Act, 1944 (as amended and embodied in the Eleventh Schedule of the Town and Country Planning Act, 1947), which requires the consent of the Minister to disposals of local authority land; if experience shows that the system cannot be made to for satisfactorily, an opportunity will be sought to revise this section of the Act.

APPENDIX VI

Ministry of Transport Sub-Committee

536

Chairman: Rage RM297 Convener: Ms. L7(County

Surveyor, East Sussex).

1. Technical manuals and circulars will be flexible enough to allow for varying works and site conditions and to encourage enterprise and experiment in new methods and materials.

2. The examination of highway authorities' improvements proposals sub- mitted through qualified engineers will be confined to questions of policy and reasonable conformity with good practice.

3. Forecasts of work which it is proposed to carry out will be submitted annually.

4. Claims for grant payment will be deemed to be a sufficient record of progress, but should be submitted regularly.

5. The definition of “maintenance” will be extended to include all works under an estimated cost of £5,000 at present defined as "minor improve- ments ", the definition of which will be correspondingly narrowed.

6. Estimates for maintenance and minor improvements will in future be divided only as between the class of road, i.e., Class I, II or III; and all minor improvements, as newly defined, will be scheduled with the location, type of work and total estimated cost for each individual minor improvement. 7. Major improvements estimated to cost less than £5,000 will be submitted on an annual schedule giving the location, type of work and total estimated cost in respect of each scheme; the schedules will be discussed between the Divisional Road Engineer and the surveyor of the authority and any details required will be kept to a minimum; approved schemes on this schedule will be the subject of a single comprehensive grant for each class of road.

8. Whereas at present grants towards works are not issued below a minimum of £10, this minimum will be increased to £20 in respect of any one grant application, and the same limit will apply to claims in respect of some minor operations such as the provision and maintenance of speed limit signs and pedestrian crossings.

9. Where work is to be carried out by contract, the obtaining and accept- ance of a suitable tender within the approved estimate, together with the execution of the formal contract documents, will be the responsibility of the highway authority without further reference to the Ministry, provided that :-

(a) Invitations to tender are by public advertisement.

(b) A tender other than the lowest is not accepted without prior agree-

ment by the Ministry.

variations to be approved by the Ministry.

(d) A copy of the accepted tender is sent to the Ministry.

10. Local authorities will be empowered to erect at their discretion autho- rised warning or informative traffic signs.

11. Subject to general directions from the Minister and provision for appeal, county councils and county borough councils outside the London traffic area should be empowered by legislation to make substantive Orders, without the need for the Minister's confirmation, imposing no waiting", uni- lateral waiting ", one-way working" and weight restrictions.

12. The law and procedure governing the permanent closure of highways and the erection of ref quo9e7barriers Bade bosonifiep097

13. The Ministry is considering the possibility of simplifying the details required to be submitted with applications for proposed origin and destination

surveys.

14. In consagang 086 ufpiament of Phagathinistration 97highway lighting in general, the Ministry should explore the possibility of modifying their supervision of trunk road lighting which is assisted from the Road Fund. 15. The Ministry will approach agent authorities to ascertain whether they could undertake trunk road surveys or works before these are put in hand by the Ministry.

16. Half-yearly estimates of requirements of stone, slag and lime submitted by highway authorities will be abolished' on the understanding that authorities will notify Divisional Road Engineers of any material variation of their estimated requirements from the corresponding period of the previous year.

17. The sub-committee is considering some matters further, such as the simplification of trunk roads procedure (including the possibility of trans- ferring to agent authorities work in connection with the conveyancing of land) and the amendment of forms consequential on accepted

recommendations.

APPENDIX VII

Grant Claims and Loan Sanction Procedure Sub-Committee

Chairman: Mr. P. D. Proctor, C.B. Convener: Mr. J. Lythgoe, C.B.E.

(City Treasurer, Manchester).

NOTE BY THE MAIN COMMITTEE

Owing to the nature of this report it is, unlike those of other sub- committees, reproduced in full. In endorsing it we wish to draw attention to paragraphs 13 and 14, since here the sub-committee did not submit specific recommendations to us. We take the view that the chief financial officer is the most appropriate person to sign statements of claim for grant on behalf of a local authority (paragraph 13). The view expressed by the departmental representatives in paragraph 14, that the chief financial officer should as a regular practice be given an opportunity to review contract settlements either. before the technical officer (or professional adviser) gives his final certificate or restrospectively, raises a question which is solely the responsibility of each local authority. Nevertheless we commend to local authorities generally the procedure suggested in this paragraph, which we understand is already followed by many authorities. Whether the review takes place before or after the contract settlement, it is intended that it should be concerned not with the technical aspects of the contract but with the accuracy of the accounts. We feel in particular that it is undesirable that a local authority should take formal steps which would deny its chief financial officer the opportunity to comment on contract settlements at some stage.

REPORT OF THE GRANT CLAIMS AND LOAN SANCTION PROCEDURE SUB-COMMITTEE

I. INTRODUCTION

1. We were invited to consider and to report to the Committee on any questions falling within its terms of reference which related to the administrative arrangements and procedure for grant claims and requests for loan sanction by local authorities; and in particular to examine a number of pointserais notfiel 9orts of others mifee$097 100

II. ADMINISTRATION OF GRANTS

2. An examination of the conditions and procedures under which grants are paid by@overnment Pepents in Hagefa&ious fldo19 authority services reveals a considerable variety of practice between Departments and in some cases between different services administered by a single Department. This variety is in itself likely to waste manpower in two ways; first because many officers in the financial staffs of local authorities are concerned with the accounting work of several grant-aided services (as are also the District Auditors) and will therefore be obliged to master and apply different rules for similar circumstances in different services; secondly because when a new grant-aided service is set up or when the grant regula- tions of an established service are under review, time is spent by senior representatives of local authorities and of Government Departments in discussion and negotiation of conditions and procedures for the payment of grant which have already been settled and tried in other services.

3. We therefore accepted as our first principle that greater uniformity of practice in these matters is desirable as an end in itself. With this in view our intention has been to ensure that within the general framework of grant policy (with which we were not immediately concerned) the practice should as far as possible be standardized in a way which conformed with the general principles set out in the Committee's Memorandum of Guidance and which gave the greatest opportunity and encouragement for economies of manpower.

4. In more detail our aims can be summarised as follows:-

(a) to establish logical sequence, form, content and method of handling in relation to statements of claim rendered by local authorities. In particular we felt that as a matter of orderly accounting state- ments of account in support of grant claims should form an ordered series, recognisably linked (or at least easily reconcilable) with the main headings of the Annual Epitomes of Accounts submitted by local authorities under the Local Government Act, 1933, and thus ultimately with the annual Summary of Local Government Financial Statistics.

(b) To remove, as far as possible, minor points of difficulty which are liable to cause irritation and correspondence out of proportion to their importance.

(c) To save time and energy in negotiating, on new services, grant conditions and other points already well settled in other services. (d) To render unnecessary the arbitrary modification for grant purposes of well recognised accountancy practices. Grants should be paid on the basis of accounts prepared in a normal manner which the District Auditor is prepared to certify as showing the actual expenditure incurred on the service under the con- trolling statutes, subject to the proposals discussed below.

5. In order to achieve these aims we recommend that a set of general rules should be circulated to the Government Departments concerned with grant-aided services, laying down for their guidance the standard conditions of grant payment and procedures which should normally be adopted. We recognise that these rules aay not in all respects be appropriate to the circumstances of every case and that arrangements may be necessary, subject to the normal consultation with local authorities, for Departments to diverge from them inPpagecil8stafce9 But we agchathoceps need not be numerous.

537

6. We have considered in some detail what the content of the proposed general rules should be and our agreed* recommendations are summarised in the draft heads for general rules set out in the Annex to this report. The more impBage questione fwho we considergenling fupse heads are discussed in paragraphs 7 to 18 below.

7. It should be made clear from the outset that the proposals embodied in the draft heads raise no new principles and, with one exception (para. 12 (b) below), involve no practices with which local authorities are not already familiar. In fact our proposals will probably best be understood by those most concerned if we explain that they extend to grant-aided services generally the conditions of grant and procedures for grant claim and payment which are at present (and have for many years been) applied in the case of the main education grant. The chief characteristic of this system is that grant is calculated by the Department on the basis of a copy, certified by the District Auditor, of the local authority's own account, which is supported by replies to a questionnaire from which the Department obtains information or assurances on particular points affecting the financial con- ditions of grant. By eliminating the preparation by local authorities of special accounts for grant claim purposes and the need for a variety of separate certificates to cover specific points, this system has been found to be economical of labour in local authorities and Government Departments equally. There appears to be no reason why it should not be given general application with equal success.

8. The local authority representatives have stressed, and we endorse the point unanimously, that this system can be expected to work smoothly and economically only if Departments use discretion in drawing up the question- naires and other necessary forms and bear in mind the need for keeping them as simple as possible. Any Department which succumbed to the temptation to elaborate these forms by asking for information without considering sufficiently closely whether it was really needed or sought to use them as a long-stop for some other form of control, would clearly be likely to frustrate the purpose of our recommendations. The questionnaire should be confined to items which might affect the amount of expenditure recognised for grant.

9. We also recognise the importance of allowing local authorities as far as possible to run their own affairs and we think that Departments should exercise restraint in asking for detailed information in support of claims. for grant additional to that obtained in the forms submitted for the purpose. In this context we took note of a suggestion made by one of the other sub-committees that the District Auditor's certificate should be accepted by grant-paying Departments without further investigation of the detailed claim. We are unable to accept this suggestion. The certificate of the District Auditor cannot alter the fact that the Minister concerned with a grant-aided service is responsible to Parliament for the proper disbursement of the grant. It is for this reason essential that the Minister (and the Department acting on his behalf) should continue to have the right to make enquiries before accepting a grant claim. But as already stated we are agreed that in practice it is desirable that such enquiries should be kept to a minimum and we appreciate that the District Auditor's certificate does greatly reduce the need for them.

10. We are agreed on the need for full consultation between Departments and local authority representatives on any points of substance which arise in the drafting of grant regulations, claim form of gegemmend that

*Subject to the points referred to in paras. 13 and 14 below.

have in additi gë 18XES

538

Departments should be reminded of this important point when the proposed general rules are

to them. The departmental representatives to make arrangements Which Will assist in main- taining uniformity of practice in these matters between Departments and facilitate the exchange of experience.

11. Our discussions about conditions for grant centred particularly on the admissibility for grant of appropriate proportions of the central adminis- trative expenses of local authorities. This is a matter in which there has been a marked diversity of practice between (and within) Government Depart- ments and on which there seems to be an unanswerable case for greater uniformity. Our recommendations are summarised briefly in the draft heads for general rules (Annex, para. 6). In making them it will be seen that we have accepted the general principle that all actual expenditure incurred for the purpose of a grant-aided service should be admitted for grant, irres- pective of whether it relates to work which is decentralised and carried out in a separate department for that service or is carried out centrally in one of the general administrative departments of a local authority. The advantages of this principle are that it appears to us to be logical, that it is in practice comparatively simple to administer, and that it takes account of the different types of local authority organisation and encourages local authorities to adopt whichever will be most efficient and economical. 12. The following points of explanation supplement the recommendations on this matter in the Annex :-

(a) Salaries of central administrative staff

While we are agreed that in accordance with the above principle an apportionment of the salaries and wages of staff in central departments should be admitted for grant, we felt that it would be inappropriate for grant to be paid on salaries of chief officers and their deputies (other than those appointed for the service in question) in the same way. This is a matter on which opinions have for long differed (and indeed Mr. R. S. McDougall (County Accountant, Hertfordshire) was unable to share the majority view on this point) but bearing in mind that a local authority is in most cases under a statutory obligation to appoint these officers, most of us felt that it would be out of keeping with the history and traditions of local government for grant to be claimed on the salaries of clerks of councils, treasurers and other chief officers. (b) Joint use of buildings, land, etc.

A suggestion was made by the local authority representatives that where a grant-aided service occupies premises which are owned by a local authority, grant should be paid on the true rental value of such premises whether or not there happened to be outstanding debt on the buildings. This submission was supported not only on the ground of equity, but also because such a charge was necessary to show the true economic cost of the service. Further it often happened that some other service was thereby displaced for which alternative premises had to be bought or rented. The departmental representatives felt unable to agree to this suggestion in so far as it related to premises required for administrative (as opposed to operational) purposes, since they main- tained that the suggested rental charge was a notional item of expenditure which did not correspond with any actual outgoings in the local authority's books and that serious difficulties both of practice and principle would arise in examining and admitting claims of this type. The proposal on which we finally agreed (Annex, para. 6) is therefore

be in the in themature of a compromise, based pa the principle that grant should be paid only on actual outgoings incurred.

in 1998

Superannuation Act and equivalent local act powers

The Ipeab authority ofpresentatives suggested that grant should be paid on those supplementary allowances and gratuities which local authorities have power to make, under the Local Government Super- annuation Act, 1937 and local act powers, to members of their staffs who do not qualify for pension rights. They claimed that this system had been deliberately framed by Parliament as an integral part of the local authorities' code of conditions of service. Indeed in some cases account had been taken of the prospect of payments of this type in negotiating wages and conditions with Trade Unions. The departmental representatives recognised that there was force in this argument and agreed that, although the manpower at issue would not be substantial, this was a small point of irritation which could usefully be eradicated. We accordingly recommend (Annex, para. 6 (f)) that these payments should be recognised for grant.

Certification of statements of claim

13. It was proposed by the departmental representatives (Annex, para. 7) that as a general practice statements of claim for grant should be signed on behalf of the local authority by the chief financial officer. There is no disagreement in the sub-committee on this point, but as the local authority representatives on the sub-committee have felt that they could not properly commit their Associations on the matter, it is suggested that it can best be considered by the main Committee.

Contract Settlements

14. One further important question was raised by the departmental repre- sentatives which can probably best be considered by the Main Committee. This is the recommendation (Annex, para. 9) that as a standard practice all proposed contract settlements should be reviewed by the chief financial officer or his staff before the technical officer gives his final certificate. The local authority representatives on the sub-committee again felt that it would be inappropriate for them to express a view on this proposal. But the departmental members strongly recommend the proposed arrangement (which is already provided for in the standing orders or financial regulations of many local authorities) as a matter of efficient organisation. They feel that it is no more than a matter of common sense (and in no way, as has sometimes been suggested, derogatory to the competence or professional standing of technical officers) to suggest that the finance staff of a local authority, to whom the handling of figures, contracts, etc., is a

"bread and butter" task, may be able on occasions to detect points arising from the financial provisions of the contract which the technical staff concerned might excusably overlook. It is recognised that in a few of the larger authorities such an arrangement might, owing to the sheer volume of the work, involve unacceptable delays and it is suggested that in such cases the chief financial officer should have the right to carry out retrospective reviews of contract settlements. The departmental members feel confident that if, as they hope, this proposal is endorsed by the Committee and receives the influential support of the local authority Associations, a reduction will be secured in the number of cases which present difficulties each year in connection with contract settlements.

Application of proposed general rules to particular services

15. Although owe haben migrarily Peamerned to draw in outline a set of general fules for the guidance of Departments, attention should be

יי.

539

drawn to several points arising out of the application of these rules to individual services. The first relates to road fund grants made to local highway authorities by the Mirfist Traßpore 10though her services the charging of the overheads of the cost of works has usually been found to provide the appropriate way of obtaining a basis for grant, in this case grant-earning expenditure has always been confined broadly speaking to the cost of works on the site. All establishment expenses and overhead charges at stores and depots have been excluded. The local authority repre- sentatives consider that an appropriate charge for those overhead expenses, which are in the nature of works oncost, is a proper item of expenditure to include as part of the costs of works. The rates of grant were however recently increased after consultation with local authorities on the under- standing that the existing basis would be continued. It would doubtless be reviewed if local authorities desired it, but until, in the light of such a review, new rates of grant are negotiated we do not suggest that there should be any substantial change in the existing arrangements. It will follow that certain parts of the proposed general rules (in particular most of paragraph 6 of the Annex) will not be applicable to highway grants.

16. Secondly, the administration of Section 93 of the Town and Country Planning Act, 1947 (which relates to grants for acquisition and clearing in redevelopment areas) was excluded from our consideration by the remit from the main Committee. We have accordingly taken no account of the administration of this section in drawing up our proposals for general rules. 17. It was suggested to us that the administration of grants in aid of electoral registration expenses under the Representation of the People Act, should be reviewed to see whether any simplification of the existing procedures is possible. We have not been able to examine this matter in detail but we recommend that the Treasury should be invited to discuss it with local authority representatives with a view to applying the principles of the general rules.

18. Finally we were specifically invited to consider a criticism that the examination of claims for grant on the rodent extermination service was unnecessarily meticulous. We understand that the grant regulations relating to this service are being revised in consultation with local authority repre- sentatives and we consider that the application of the proposed general rules should obviate the difficulties which have arisen in the past. Other matters referred to the Sub-Committee

19. We also examined two further specific proposals which were referred to us from the reports of other sub-committees. The first of these was a suggestion that the ban on charging to loan the wages, salaries, etc., of permanent employees should be removed. We are not able to agree that this ban should be completely lifted, but we understand that the rules on this point will be revised by the Ministry of Health in the near future.

20. We were also asked to examine a suggestion that there was unnecessary duplication of audit between the District Auditors and the Area Finance Officers of the Ministry of Transport. We have been informed that as a result of further enquiries made by the local authority representatives they wish to withdraw their recommendation on this point. We have accordingly not pursued the matter further and have no recommendation to make on it.

III. LOAN SANCTION PROCEDURE

21. The second part of our task was to consider a number of comments and proposal aghich had been (97 forwangen 1the reports007 other sub-

committees in connection with the loan sanction procedure. In doing this we felt obliged to restrict our review to the administrative procedures involved and we did not therefore examine such major questions as the course of fpture policy with regard toplocal authorityf horrowing or the possible replacement of the loan sanctioning procedure by other forms of control over capital development. We understand that in any case arrangements have been made independently for discussions to take place between representatives of central and local government on future policy with regard to the Local Authorities Loans Act, 1945.

22. In examining the existing procedure we felt able to base our general approach on the Memorandum of Guidance by the Committee. It is our view that this form of control over the raising of loans should be regarded primarily as a means of ensuring that local authorities both individually and collectively adopt a sound and proper policy with regard to incurring future liabilities for present capital development. We consider that it is undesirable in principle and likely to be wasteful of administrative effort that the loan sanctioning procedure should be regarded as a secondary means or complementary method of central control.

23. With this principle in mind, we have three main recommendations to make :-

(a) Our first recommendation relates to those grant-aided services for which it is intended that capital development should be approved by the Departments concerned on the basis of annual programmes submitted to them by local authorities. We feel that since it is intended that, except in special cases, this approval should carry with it the Department's authority to proceed with the programme without further formal reference, the procedure would be made simpler if each complete programme were normally covered by a single or "block" sanction, or by not more than two or three "block

sanctions where separation by loan periods is necessary. This system has already been adopted with success in the housing schemes of some of the larger local authorities and we think that it could well be given wider application. There should as a result be a saving of manpower both in local authorities (some of which at present make as many as 150 or 200 individual appli- cations for loan sanction each year) and in the Government De- partments which have to scrutinise them. We recognise that the suggested system will involve some practical complications. For example since local authorities are frequently unable for various reasons to complete the whole of their programmes in the year intended, it would be necessary in such cases to adjust the appro- priate part of the block sanction in the programme and sanctions of the following year, or in some other way. A more practical difficulty may perhaps be the peak load which will fall on the Government Departments concerned at the period when annual programmes are received. But we do not think that this difficulty, which is to some extent inherent in any system of annual pro- grammes, should prove insuperable. Under the suggested pro- cedure it would for various reasons be necessary that the steps of obtaining Treasury consent to borrow under the Control of Borrowing Order, 1947, and of approval for loans to be borrowed from the Public Works Loan Board, which are at present com- bined with the sanctioning of the loan in a single operation, should be taken separately atpa later stags. Here again we feel sure that a simple and expeditious procedure can be devised.

pubs fraggain

One corollary of the new procedure suggested would be to abolish the present system whereby the London County Council aqps under statutefas deen-sanctioning authority for most services of the Metropolitan Borough Councils (the Ministry of Health acting for the remainder). The essence of loan control is that the power should be vested in an authority which can review the total effect of the debt obligations being undertaken by the local authority and by similar local authorities; and the present arrangement in London, which dates from 1855, is an anomaly. Moreover application for loan consent is not infrequently accom- panied by application for a compulsory purchase order, which again is a matter for the Ministry of Health. We recommend, therefore, that at the earliest suitable opportunity legislation should be introduced to transfer to the Ministry of Health the loan-sanctioning powers of the London County Council. Pending such legislation it might be possible for these powers to be transferred under an agreement.

(b) Our second recommendation is that the normal arrangement should be such that approval of a capital project by the Department concerned with its merits and responsible for any grant, should carry with it a guarantee of loan sanction from the Ministry of Health. It would follow that, as recommended by another sub- committee, the loan application should in all cases be addressed to the Department concerned with the merits. This would make universal a procedure which already operates over a large part of the field (education, highways, etc.). This is primarily a matter for administrative arrangement between the Departments con- cerned and we do not anticipate that it should cause any serious practical difficulties.

(c) Our third recommendation is that block sanctions might also be given for a wide range of projects on non-grant-aided services for which the system of annual programmes of capital development has not hitherto been thought appropriate. We suggest that local authori- ties might put forward each year programmes of miscellaneous items for which block sanctions could be granted. Such a scheme would clearly be inapplicable to a number of projects of a major character which require individual consideration by reason of technical or other abnormal circumstances, and for them indi- vidual applications would still have to be made. But the Ministry of Health has undertaken to examine this proposal sympatheti- cally with a view to simplifying the present procedure on these lines.

Signed on behalf of the Sub-committee P. D. PROCTOR,

J. LYTHGOE.

540

Treasury Chambers, S.W.1.

7th November, 1949.

ANNEX

Draft Heads for General Rules

1. All statements of claim to be prepared on an income and expenditure basis. Expenditure to be as defined in the Borough Accounts Order, 1930, and to cover contributions to internal funds, such as fire insurance funds,

depreciation Pangerepewa fufids097 Page 1093 of 1097

2. Statements of claim to be an ordered series agreeing with detailed sections of the annual accounts of local authorities summarised in the Epitomes of aged 4 of 1097

locapage 1094 of 1097

3. Statements of claim to be accompanied by replies to a questionnaire (either as a separate sheet or as an appendix to the statement itself) wherein the chief financial officer is asked to make positive replies to a series of questions aimed at bringing out the following:

(a) Necessary information as to any adjustments which may have to be made to convert total expenditure into expenditure ranking for grant.

(b) Assurance that important conditions of financial administrative control have been complied with and, if not, the extent of the discrepancy—e.g., have any payments been made in excess of Burnham scales, and, if so, how much?

The questionnaire, which should relate only to the financial conditions. of grant and should be certified by the chief financial officer, should be a flexible document. If necessary, it can be amended from year to year to bring out special points as they arise.

4. Unless the form of account is laid down by Statute (as it is in the case of the Education Account and the Housing Revenue Account), state- ments of claim should normally make provision for the following headings:-

Expenditure

(a) Salaries, wages and other emoluments of persons forming part of the service or specially identified with it (teachers, police officers, fire brigade officers, children's welfare officers, probation officers, etc.).

(Note. If approved complements are a feature of the service, the

actual and approved numbers should be shown.)

(b) Loan charges (including expenses of debt management).

(c) Premises required for the service (schools, health centres, police stations, fire stations, etc.)-rent, rates, insurance, cleaning, repairs, lighting, heating, furniture, etc.

(d) Operational equipment and plant (including maintenance and

repairs).

(e) Institutional costs (board, lodging, meals, etc.).

(f) Administration.

Salaries and wages

Office accommodation

Travelling and subsistence

Stationery and office equipment

Miscellaneous

Direct Apportioned

Charges. Charges.

(g) Capital expenditure out of revenue (being expenditure on an

object for which a loan sanction might ordinarily issue).

Income

Rents receivable (gross)

Interest on investments (gross)

Foes

Otge 1094 of 1097

European Policy: Memorandum by the Secretary of State for Foreign Affairs.

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