CAB23-58 — Page 79

Page 79

Page 79

77

SCHEME OF RATING RELIEF.

Scotland.

(Previous

Reference: Cabinet 34 (28). Con-

clusion 3.}

4.The Cabinet had before them a Memorandum

by the Secretary of State for Scotland (Paper

C.P.-201 (28)) containing a description of the

principal proposals to be embodied in a Memorandum

on Local Government changes in Scotland consequent

upon the Scheme of Rating Relief, which he hoped

to submit in draft early next week. It was

mentioned that new money required to meet the

grants payable under the formula in Scotland would

amount to £750,000.

The draft Memorandum referred to in the

Secretary of State's Memorandum was circulated on

the evening before the Meeting for attachment to

Paper C.P.-201 (28).

The Secretary of State for Scotland made a

statement to the Cabinet in which, inter alia, he

called attention to the following points:-

That a concession might possibly have to be made in order to secure that agricultural subjects should be rated. on one-eighth of the gross annual value instead of one--sixth as stated in paragraph 2 of the draft Memorandum:

That some difficulty might arise owing to the suppression of the existing Local Education Authorities:

That the figures at the end of the draft White Paper would, in the final print, be brought into harmony with the figures in the Minister of Health's Memorandum:

That there were some districts, in Glasgow, for example, where it was impossible to equalise the loss without sore financial assistance.

The Chancellor of the Exchequer, recognising

that both in England and in Scotland there were some

places where the loss could not be equalised, said

that if the two Ministers concerned could devise a

scheme which would enable an announcement to be made

-6-

Page 79

Page 79

Page 79