37~O Sf SERVANTS OF INDIA SOCIETY'S UBRARY. POON" 4. FOR ~NrERNAL CIRCULATION To be returDed 00 or before the last date stamped bela ... 11 8 JU~ 196 2 2 AUG 1969 25 lH .• 1 t~'· t 6 APR 1 9 STUDIES IN ECONOMICS AND POLITICAL SCIENCE No. &4 illlhc Seri.. of Moooerophl II, Writen coollcctccl with the LoWII Ichoo1 of EcooomiCi aDd Polilicol Scieace. Dhananjayuao Gadgil Liblllry IllJillmDm~Wam~mlllr GIP~P~03720 GRANTS IN AID: A CRITICISM AND A PROPOSAL GRANTS IN AID: A CRITICISM AND A PROPOSAL BY SIDNEY WEBB LONGMANS, GREEN AND CO., 39 PATERNOSTER ROW, LONDON, NEW YORK, BOMBAY AND CALCUTTA 19 11 X7(,7.~.N c·-- I 372-0 CONTENTS PAG. Pu FACB vii CHAPTEIt 1 What our Grants in Aid seem to be, and what they really are I CHAPTU II Why have Grants in Aid at all? 9 CHAPTER III How we Distribute Thirty Millions a Year in Grants inAid ••••••••.•••••••.. 27 CHAPTEIt IV The Grants in Aid of the Poor Law Authorities •.. +0 CHAPTEIt V The Grants in Aid of the Local Education Authorities 67 CHAPTEIt VI The Lines of Reform 80 BIBLIOGRAPHY III 130 PREFACE WHEN, in June, 1910, I contributed a Preface to Dr. Watson Grice's historical survey of National and Local Finance, I did not expect to be asked to supplement that useful work by anything like a volume of my own. But the administrative problems connected with Grants in Aid are so important, and the subject is one of such pressing interest at this moment, that I cou~d not do otherwise than respond to innumerable inquiries that amounted, in the aggre~te, to a demand. ThIS is, it seems, the first book to appear in the form of a treatise on Grants in Aid. Written, as it has been, under the pressure of other duties, the author has not scrupled to reclaim and incorporate, amid that whiCh now appears for the first time, his previous scattered contributions to the subject; and to use them, where they fitted, as bricks in this more systematic edifice. And thus, if the diligent reader is sometimes haunted as by an echo, let him not impatiently conclude that the whole book is echo; and let him remember that, when a thing has ~een said once, it is not alt08ether imt'ertinent, if there be need, for it to be said agaIn, and said in volume form I The extensive bibliographical list of references to the subject, included in this volume, I owe almost entirely to Dr. Watson Grice, who kindly placet! it at my disposal; and to Mr. B. M. Headicar, the Librarian of the British Library of Political Science, in connection with the London School of Economics, where practically all the sources mentioned are accessible to any serious student. SIDNEY WEBB. London. May, 1911. BIBLIOGRAPHY For the following extensive list of references to Grants in Aid, especially in their bearing on administration, I am indebted, almost entirelr' to Dr. Watson Grice, whose book, National and Loca Finance, deals with their history more completely than any other work; and to Mr. B. M. Headicar, Librarian at the London School of Economics and Political Science. First Education Grant. Hansard. Report of Select Committee on the County Rate (H. of C., No. 542 of 1834.) First Report of the Commission on the Need for a .Constabulary Force, by Edwin Chadwick, etc. Report of the Poor Law Commissioriers on Local Taxation. SIR. ROBJ!R.T PEEL and Control of Police· 3 Hans., . vol. 83, p. 274 (Jan. 27)· -- Highway Authorities. 3 Hans., vol. 83, p. 264. -- Poor Relief. 3 Hans., vol. 83, pp. 264 sq. -- Poor Law Teachers. 3 Hans., vol. 83, p. 27S; see also 3 Hans., vol. 108, p. 1207 (Feb. 19, 18so). Fa.v, DANBY P.: The Local Taxes 0/ the United Kingdom. Thirteenth Annual Report of Poor Law Commis- . sioners: Effect of Medical Relief Grant, p. 17; Carrying outProvisionsofVaccina­ tion Extension Act, p. 18. 1848• Fourteenth Annual Report of the Poor Law Com­ missioners: Medical Relief Conditions and Improvements, p. 4. III 112 GRANTS IN AID DISRAELI, B. (afterwards Earl of Beaconsfield): Motion for Recognition of National Burdens. 3 Hans., vol. 1°3, pp. 424 sq. (March I). WOOD, SIR CHARLES, Views of. 3 Hans., vol. 103, p. 767. 185°' DISRAELI, B.: Renewed Debate. 3 Hans., vol. 108, pp. J034 sq. (~eb. 19); also pp. 1246 sq. GLADSTONE, W. E., supports Disraeli. See 3 Hans., vol. 108, p. 1207 (cf. Morley's. Life of Gladstone, vol. i., p. 354). 18 52. Report of Select Committee on Police: Sess. Papers (1852-3), vol. 36, p. 180. -- Evidence of Chadwick, pp. 83-88. Reports of Inspectors of Constabulary.: Police Control. S.P., 1857-8, vol. 47, pp. 4 sq. and 82 sq. LEWIS, SIR GEORGE C. : Government Contribution in lieu of Rates. 3 Hans., vol. 154, p. 794· 1861. MILL, JOHN STUART: Representative. Government (chapter on "Local Representative Bodies," pp. 264-284). Maintenance of Roads, As to. (H. of C., No. 383. of 1864.) S.,P., vol. 9, p. 33 1. Poor Relief, Report of Select Committee on. S.P., vol. 9 of 1864, p. 48. - Medical Relief. Ibid., p. 14. -- Improvements under Grant System. Ibid., p. IS· -- Auditors. P.17. -- Poor Law Teachers' Grant: Evidence of Mr. Nassau Senior, p. 214; ,Parliamentary Gran t beneficial, p. 21 5. -- Rates, Simplification of, for London, p. 48. -- Poor Relief, Central Control Indispensable, P·197· BIBLIOGRAPHY 113 Mr. Goschen's Report to the Poor Law Board on the Progressive Increase in Local Taxa­ tion. H. of C., No. 470 (reprinted as H. of C., No. 2.01 of 1893). 18 71• P ALCIlA VE, SIlt R. I: The Local Taxation 01 Great Britain and Ireland. -- Grants in Aid and Mr. Gladstone's remarks thereon, p. 55. Local Government Board, First Annual Report of : . Effects of Poor Law Teachers' Grant, pp. 2.2.4, 22.8, 2.34. 18 72.. LoPEs, SIR. MASSEY: Motion on Local Burdens and Relief ttom the Exchequer. 3 Hans., vol. 2.10, p. 1331 (April 16). -- Effect of Threatened Withdrawal of Grants. 3 Hans., vol. 2.10, p; 13++. -- Local Control of Expenditure. 3 Hans., vol. 2.10, p. 13+7. ACLAND, SIR. THOS., opposes Extensions of Grants. 3 Hans., vol. 2.10, p. 14°2.. GOSCHEN, MR.. G. J. (afterwards Lord Goschen) : Reports and Sp.eeches on Local Taxation. -- Interest of Owners and Occupiers in Adminis­ tration. See Draft .Report by Select Committee on Local Taxation, p. 173· -- Audit, p. 193. -- Compulsory Returns. 3 Hans., vol. 190, P· loI3· - Proposal to hand over Inhabited House Duty to Local Bodies. 3 Hans., vot: 32.5, p. I2.3 (April2.o, 1888.) NOR.THCOTE, SIR. STAFFOR.D (afterwards L~rd Iddesleigh): Increased Grants for police and Poor Rdief. 3 Hans., vol. 2.18, pp. 643 sq. (April 16). --'- Revenues instead of Grants, Proposed, p.6SS· 114 GRANTS IN AID MORLEY, JOHN (afterwards Viscount· Morley):' The Struggle for National Education. -- Suggested Increase of Grants, p. 17. -- Free Schools, p. 139. BAXTER, R. DUDLEY: Local Government and Taxation and Mr. Goschen's Rep.ort. NOBLE, JOHN: National Finance -- and LOPES, SIR MASSEY, p. '101. Session of 1871. -- and DISRAELI, p. 116. Session of 1871. -- and W. H. SMITH, p. 130. -- Chapter on Modern Finance and the Work- . ing Classes, p. 255. -- Criticism of Northcote's First Financial Statement, p. 32 I. Prisons •.. Transfer of. 3 Hans., vol. 232, p. 450 (Feb. 9). -- J. CHAMBERLAIN on, p. 436. - Increased Uniformity resulting from, p. 453. 1881. FOWLE, REV. T. W.: The Poor Law. -- Poor Law Grants, pp. 31,107. 1882. Local Government and Taxation in the United Kingdom (Cobden Club Essays). -- State Control \ over Local Government by means of State Inspection and Grants, P·55· . Runl Burdens, Report of Royal Commission to consider (Duke of Richmond), Cd. 3309 of 1882. GOSCHEN, G. J. (afterwards Lord Goschen): Local and National Work. 3 Hans., vol. 278, p. SII. GREY, ALBERT (afterwards Earl Grey): Increased Subventions, Demand for. 3 Hans., vol. 278, p. 454· PELL, ALBERT: Speech on Extended Subventions. 3 Hans., vol. 278, p. 437· . DILKE,SIR CHARLES: Effect of Grants. 3 Hans., vol. 278, p. 486. BIBLIOGRAPHY 115 GLADSTONE, W. E.: No further relief from-Con­ solidated Fund unless accompanied by Reform of Local Government. 3 Hans., vol. 278, p. 522. 1884. WR.IGHT, R. S., and HOBHOUSE, HENR.Y: Local Taxation. Third edition, much revised, 1906• -- Government Contributions, Amount of, pp. 78,80. ---- Analysis of, p. 92. --. -- in Lieu of Rates, pp. 28, 92. GLADSTONE, W. E.: Reform of Local Govern­ ment and Inducements to Economy (Times, Sept. 19)' RATHBONE, W., PELL, A., and MONTAGUE, F. C.: LoctJl GO'l)ernment and Taxation. 1888. GOSCHEN, G. J.: Proposals for Assignment of Revenues for Local Purposes. 3 Hans., vol. 324, pp. 268 seq. FAWCETT, HENR.Y: Manual 0/ Political Economy. --. The Consolidated Fund and Relief of Local Burdens, ibid., p. 6 II. BUXTON, SYDNEY: Finance and Politics. -- Local Taxation and Local Government Re­ form. Ibid., vol. ii., p. 185. -- Sir S. Northcote and Local Subsidies. Ibid., P·232. ASHCR.OTT, P. F. and PR.ESTON-THOMASj H.: The English Poor Law System. -- Development of, an4 Share of Central De­ partment in. Ibid., p. 97. -- Development of State Relief, in connection with Local Administration. Ibid., p. 102. -- Power of Central Department over Met. Common Poor Fund. Ibid., p. 76. Education Grants, Report on Administration of, 1833-58, in H. of C., 5485, Sess. Papers, vol. xxxv. of 1888, pp. 3, c;tc. Parliamentary Paper C., 5344 of18SS.