CO537-2188 — Page 87

5.

2

Acts. These schemes have to be approved by the Minister and are then binding on the local authority.

In certain cases, where a local authority fails to make a scheme, the Minister can do so (e.g. sec. 24(5) L.Ġ.A. 1929).

Financial Control.

A. Loans.

Before local authorities can exercise their powers to borrow money they must obtain the sanction of the appropriate_Minister, which is in nearly all cases the Minister of Health. Part IX, Local Government Act, 19357.

Before sanction is given the effect of the proposals on the financial position of the local authority is considered, and also the soundness from the administrative and technical standpoint of the particular capital works scheme which the loan is intended to finance. This in practice involves a detailed examination of the proposals leading often to their modification as a result of suggestions by the Central Department, before sanction is granted. Thus by this indirect means the capital works programmes of local authorities may be regulated in principle and detail by the Central Department.

B. Grants.

Besides revenue from the levying of rates local authorities receive money from the exchequer, by way of grants in respect of particular services and of the general exchequer grant

known as the Block Grant; and in practice it would be impossible for a local authority to carry out the duties if these grants were withheld. (i) Grants for specific services.

These include Housing, Education, Police and Highways, and the appropriate Government Department is empowered lay down conditions for the making of grants: e.g. sec.94 Education Act, 1944, sec. 16 of the County and Borough Police Act, 1856, sec. 112 of the Housing Act, 1936, Section 113 of the Housing Act 1936 provides that if the Minister is satisfied that a local authority have failed to discharge any of the duties imposed on them by the Housing Acts, or have failed to observe any of the conditions subject to which they are entitled to receive an exchequer contribution, he may reduce the amount of such contribution, or suspend its payment.

As Ministers are responsible to Parliament for the way in which Exchequer money is spent, the proposals of local authorities which would attract grant are very carefully scrutinised by the central Departments before they are approved.

(ii) Block Grant.

Sec. 104 of the L.G.A. 1929 enables the Minister of Health to reduce the general exchequer grant if he is satisfied that a local authority have failed to achieve a reasonable standard of efficiency and progress in the discharge of their functions relating to public health services, or that their expenditure has been excessive or unreasonable, or where the Minister of Transport certifies that he is satisfied that the council have failed to maintain the roads in a satisfactory condition.

/c.