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are not co-terminous with those of the Borough:

Attention was also called to the anomalous and difficult case of West Ham and the proposal was made that the County Boroughs of East and West Ham should be converted into Metropolitan Boroughs, a subject on which the London County Council would be consulted:

That the £3,000,000 originally proposed to be provided as new money to help the scheme through had grown to £7,500,000.

The Minister of Health asked the Cabinet to

take note that in paragraph 3 of his covering

W

Note the words "scheduled roads should be

corrected to read "all roads"

After discussion, the Cabinet agreed

(a) That as regards the Borough and

District Councils within the administrative county, in lieu of the proposed guarantee that in no case shall the actual increase in rate poundage exceed 3d. in the pound, a guarantee should be given that no loss shall fall upon any authority at the initiation of the scheme:

(b) That this protection against loss should be afforded by a temporary arrangement the cost of which should be shared between the Exchequer and the County Councils as might be arranged between the Treasury and the Ministry of Health so as to suffice in the first year to avoid an increase in rate poundage in any district:

(c) That the special grants of this

nature should be gradually reduced and should finally disappear in 1945 when the formula system is due to core into full operation:

(d) That it was of the greatest import-

ance that the Road Fund should contribute to the scheme not less than £3,000,000 a year apart from the amount of the existing Road Grants which are to be incorporated in the general grant, and that the Chancellor of the Exchequer and the Minister of Health should confer

·6.

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