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58.

SCHEME OF RATING

RELIEF.

(Previous

Reference:

Cabinet 83 (28). Con- clusion 3.)

3. The Chancellor of the Fxchequer informed the

Cabinet that, in accordance with Cabinet 33 (28),

Conclusion 3 (d), the Minister of Health and

himself had held a meeting with the Minister of

Transport. They were informed by Colonel Ashley

that he was anxious to make as from the 1st April,

1929, certain concessions in regard to the Classi-

fication Grants for Class I and Class II Roads.

If these were made it was doubtful whether the

finances of the Road Fund would be sufficient to

enable a contribution of £3,000,000. a year to be

made as from the 1st April, 1930, to the general

scheme of Rating Relief. On examination it

appeared that difficulty would only arise, if at

all, in the single year 1931, and that to an

extent of not more than £750,000, and the Chancellor

had accordingly agreed, if necessary, to forgo so

much of the Exchequer share of the motor licence

duties in that year as would suffice to avoid a

deficit on the Road Fund. On this unders tanding

the Minister of Transport agreed to the proposed

contribution of £3,000,000 a year, and that this

arrangement should be embodied in the Minister of

Health's Memorandum.

The Chancellor of the Exchequer also informed

the Cabinet, with reference to paragraph (c) of the

above Conclusion, that he had agreed with the

Minister of Health that the County Councils and the

Exchequer should bear in equal shares the cost a

the temporary arrangements referredto.

I

The Minister of Health informed the Cabinet

that he would have the amended Memorandum ready

for the printer on Monday, and he hoped that it

would be published on the morning of Friday, June 29th.

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