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SOCIAL SERVICES: EXPENDITURE IN THE
NEXT FIVE YEARS
Memorandum by the Treasury
This memorandum has been prepared in accordance with the decision of the Cabinet that a survey should be made of the probable course of Govern- ment expenditure on the social services over the next five years.
2. The survey has been carried out in close consultation with the Depart- ments concerned. The resulting figures, which are those put forward by the Departments themselves, are set out in Appendix I, and may be summarised as follows:-
1955/56
1960/61
Increase
£ millions £ millions £ millions
%
National Health Service
473
545
72
15.3
Education
341
435
94
27.5
Assistance, Family
Allowances and War
Pensions
325
334
9
2.8
Housing
73
90
17
24.1
Miscellaneous Services
50
52
2
2.3
Bread and Milk Subsidies
76
83
7
9.2
National Insurance and
Industrial Injuries x
679
810.
131
19.2
Cost of tobacco concession
15
20
5
33.5
2,032
2,369
337
16.6
x Expenditure of the Funds: of the increase of £131 millions, the
Exchequer would bear £78 millions.
3. The figures have been compiled on the basis of existing policy for each service, but it has been necessary for the Departments to make certain assumptions and these are set out below, together with the implications for the future development of each service. These are not "Estimate" figures in the customary annual sense; the Departments are not committed to work within them, nor does the Treasury accept them as a basis for future Estimates.
It is assumed throughout that there is no general increase in costs and prices; that the average number unemployed will be 300,000; and that the present basis of grants to local authorities is maintained.
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