Despite the general improvement of conditions, there are still a small number of cases in which there are grounds for anxiety with regard to the financial position. In these cases the financial position of the Local Authorities concerned is being carefully watched and is reviewed before any further loans are approved.

Burden of Loans.-In some cases it has been found that the precise financial burden which a given loan will involve has never been clearly brought to the notice either of the members of the Council or of the ratepayers of the district.

The Department have instructed their Inspectors, when they hold Local Inquiries, always to ascertain publicly the financial burden involved by the proposal under consideration expressed in terms of the number of pennies in the £, which the loan charges will involve on the rates.

Periods for the Repayment of Loans.-The Department have had under consideration the difference between the periods allowed by them under the general law for the repayment of loans for certain classes of works and the periods usually allowed by Parliament in Local Acts. Special attention has been drawn to the matter in the reports on Bills which have been made by the Department to Parliamentary Committees, and the Department have reviewed the periods which they allow under the general law. They have decided to make a number of alterations, the most important of which is the extension of the maximum period for loans for bridges and large impounding reservoirs to sixty years in cases in which the permanence of the works proposed justifies the extension.

As a result of the Department's reports on Bills and of their alterations of loan periods, a closer approximation between the practice of Parliament and that of the Department is being attained.

Building Labour.-During the latter part of the year, owing to the acute shortage of skilled building labour, the Department urged Local Authorities to defer most building works other than housing, in order that, so far as possible, the supply of skilled labour requisite for housing might be conserved; and they accordingly declined to sanction a certain number of loans for works which would create a demand for such labour.

ACQUISITION Of Land.

A noteworthy feature of recent years has been the acquisition by the larger Local Authorities, under powers in certain Local Acts, and also under the general law, of important areas of land in anticipation of immediate requirements. The land has been acquired by the Authorities not merely with a view to parks and open spaces, or for the purposes of their undertakings, powers, and duties, but generallyto use the words of the relevant section in the Local Acts-" for the benefit, improvement, or development" of the City or Borough.

From 1919, when the powers were first granted by Parliament to the City of Birmingham, to the end of March, 1924, the Department have sanctioned the raising of loans for the purchase of lands under those powers in Local Acts amounting to approximately £750,000. Of this sum nearly £600,000 has been borrowed by the Cities of Liverpool and Birmingham. The principal item in the case of Liverpool

s the purchase of the St. Peter's Church site for £235,000, and in Birmingham the purchase of the Easy Hill estate and neighbouring land for £144,000.

Both these purchases were made for the purpose of controlling development in a central part of the town.

The provision in the Local Acts also enables a Local Authority to purchase land which has come into the market and is likely to be required, but is not immediately required, for some purpose of the Authority, with the result that the land may be acquired on more favourable terms than would be the case later. Moreover, when the land is likely to be required for several purposes, e.g., schools, allotments, recreation ground, the Local Authority are not obliged at the time of purchase to allocate the land to specific purposes.

Purchases of land with a similar end in view have also been made recently under the Municipal Corporations Act, 1882. For example, a loan under that Act has been sanctioned to the Middlesbrough Corporation in respect of the acquisition of the Marton Hall Estate (about 350 acres mainly outside the Borough), partly by purchase and partly by gift. The formalities connected with the acquisition of land under the Act are, however, somewhat elaborate, and the pericd for the loan is limited to thirty years.

Similar large purchases of land have also been made recently by certain Local Authorities under the Public Health Act, 1875, as for purposes of public walks and pleasure grounds. Under this heading the acquisition of Duke's Meadows (230 acres) by the Chiswick Urban District Council may be instanced. A somewhat similar purchase, though actually made under specific powers in a Local Act, is the acquisition by the Leeds Corporation of Templenewsam Mansion and Park, outside the City boundary, covering over 900 acres. The Mansion is a building of considerable historic interest. The Corporation, in a Bill of this Session, are seeking special powers with a view to the development and improvement of this land.

Schemes to Relieve Unemployment.

Although there has been a definite, if comparatively small, reduction in the amount of unemployment during the year, it was still necessary to continue the system of grants, which are distributed by the Unemployment Grants Committee, under the chairmanship of Lord St. Davids, in aid of works of public utility carried out by Local Authorities.

Alteration of Grants.-During the year, certain extensions of the grant were authorised. With a view to encouraging revenue-producing schemes, the grant of 50 per cent. of the interest, which was formerly given for a period of five years on loans raised for a period of not less than ten years, has now been extended to fifteen years or the period of the loan, whichever is the less, and this alteration has had the effect of encouraging such schemes.

The Committee formerly could give grants only to Local Authorities and statutory bodies not trading for profit, but, during the year, they were authorised to make grants to public utility companies (e.g., gas, water, electricity, tramway, dock, harbour, and canal undertakings) who were willing, if aided, to put in hand works which would not otherwise have been proceeded with at the present time.

The grant in such cases is up to a maximum of 50 per cent. of interest at an approved rate on the expenditure, as and when incurred, whether out of capital raised for the purpose or out of existing funds or out of current revenue, and covers a period of years varying according to the circumstances of each case. Under certain conditions, the Committee were also authorised to commute this grant into a lump sum representing the present value of the interest payments.

Alterations of Conditions of Grant.-Towards the end of the year under review, the limitation on the rate of wages in schemes carried out by Local Authorities by direct labour to a sum not exceeding 75 per cent. of the Local Authority's lowest rate for unskilled labour (or under certain conditions 87 per cent.) was altered. The rule now is that the rate must not exceed the Local Authority's rate to its own workmen on similar classes of work, or the recognised district rate (where such exists) if that is lower.

Formerly assistance could be given only in respect of works in districts where serious unemployment existed, but now it can be given also in districts not so affected, provided that, in the latter class of case, a substantial part of the expenditure on the proposed works takes the form of orders for materials which will give employment in industries affected by unemployment, though not necessarily in the area where the work is to be carried out.

Placing of Contracts.-In May, 1923, the Department issued a circular (Circular 400) to Local Authorities conveying the Government's decision that, as regards all works in respect of which grants are given expressly because of unemployment by the Unemployment Grants Committee or by any Government Department, it shall be a condition of the grant that all contracts for or incidental to the works are to be placed in this country. The Government also urged Local Authorities, in view of present conditions, and in the absence of special circumstances, to adopt the same principle in all contracts. A similar condition was already in force with regard to schemes in respect of which guarantees are given under the Trade Facilities Act.

Discretion was given to the Unemployment Grants Committee to relax the condition in abnormal circumstances.

Schemes Approved for Grant.-The Unemployment Grants Committee approved for grant, during the year ended on the 31st March, 1924, schemes which were estimated to cost £24,250,954. Fuller particulars of these schemes are given in Appendix X (pages 154-5 below).

Local Authorities (Financial Provisions) Act, 1921.

BORROWING FOR CURRENT EXPENSES.

Sanctions under Section 3.

The power conferred on the Minister by section 3 (3) of this Act to extend in certain cases the term within which the repayment of loans for current expenses is to be made was continued in force by section 2 of the Local Authorities (Emergency Provisions) Act, 1923, so as to apply to moneys borrowed before the 1st April, 1924.

The provisions of the Act have again been of special service to many Local Authorities which, owing to local conditions, have not found it possible to build up working balances on their trading or rate funds.

In some cases, in order to avoid recurring applications, continuing sanctions have been issued in a form which will empower the Local Authority to have outstanding, by way of loan or overdraft, at any time during each of the financial years over which the sanction operates, an amount not exceeding a sum specified, on the condition that the sums borrowed in any year, together with the interest charges, are repaid out of the revenue received in respect of that year.

166 sanctions were issued under section 3 of the Act during the year, to 123 Local Authorities, and the sums involved reached a total of £1,898,792.

In 148 of these cases the loans were required to be repaid out of the revenue received in respect of the year of borrowing.

The cases in which a longer period was allowed were those in which a deficiency had accumulated, generally during some years, on trading or rate funds, or in which a loan was required to meet expenditure for which power to borrow was not otherwise provided under the general law, and which would have caused considerable hardship if required to be met out of the revenue of one year.

Sanctions granted during the year to Boards of Guardians are referred to in another section of this Report (see page 98).

Alteration of Boundaries.

Bridlington, Bridport and Brighton.-The Provisional Orders extending these Boroughs, which were referred to in last year's Report, were confirmed by Parliament in the Session of 1923.

Watford.-A Provisional Order was made for the inclusion in the Borough of a part of the parish of Watford Rural in the Rural District of Watford.

Stratford-on-Avon.-A representation was made for the inclusion in the Borough of the parish of Alveston in the Rural District of Stratford-on-Avon. A part of this parish, which was large in area, was urban in character, but a large part was agricultural. All the Local Authorities concerned agreed with the proposal, and the Department therefore decided to issue a Provisional Order.

Burton Latimer.-An order of the County Council constituting Burton Latimer a new Urban District was confirmed.

Ashborne, Barnoldswick, Dolgelly, Market Harborough, Prestatyn, Rickmansworth and Stow-on-the-Wold.-Orders made by the County Council for extending these Urban Districts were confirmed by the Department, and also an order transferring part of the Urban District of Enfield to the parish and Rural District of South Mimms.

Broughton. An interesting case arose during the year of an order of the County Council of the Parts of Lindsey dissolving the Urban District of Broughton and merging it in the Rural District of Glanford Brigg. The population of the Urban District at the census of 1921 was 1,744. Its rateable value was £9,095. The area became an Urban District in 1864 in consequence of the adoption by the parish of the Local Government Act, 1858.

The County Council negotiated the terms of the necessary adjustment with the Urban District Council. No petition was presented against the order, which the Department in due course confirmed. It is many years since such an order was made.

During the year there were no alterations of County boundaries, nor were any local government areas affected by local Acts, nor any new municipalities created by Royal Charter.

!

Royal Commission on Local Government.

In the early part of the year under review, Mr. I. G. Gibbon, an Assistant Secretary, gave evidence before the Commission on behalf of the Department. His evidence in chief was submitted in the form of a memorandum in which an endeavour was made to present to the Commissioners a picture of the present system of local government in this country and of how it has reached its present form. In this memorandum and its forty-four appendices was gathered a mass of information much of which has never before been readily available. Mr. Gibbon was under examination by the Commission for five days*.

Royal Commission on Mining Subsidence.

The appointment of a Royal Commission on this subject is a matter of great interest to Local Authorities in certain districts, where public works are liable to serious damage from subsidence. Evidence was given on behalf of the Department on the extent of the damage to such services which had come to their notice, on precautions that could be taken, on the law as it affected Local Authorities, and on the operations of the Brine Pumping (Compensation for Subsidence) Act, 1891, in Cheshire.

Provisional Orders.

For Compulsory Acquisition of Land.

During the year ended on the 31st March, 1924, 22 Provisional Orders were issued under the provisions of the Public Health Act, 1875, for putting in force the powers of the Lands Clauses Acts with respect to the taking of lands otherwise than by agreement, of which 15 had been confirmed by Parliament by the date mentioned. The lands were required for purposes of street improvement, sewage disposal, water supply, and the provision of a refuse tip, refuse destructor, highway depôt and recreation ground.

An application for a Provisional Order for the compulsory acquisition of land for purposes of water supply was not granted because it appeared that the land could be acquired by agreement at a reasonable price.

For Additional Borrowing Powers for a County Council.

It was decided to issue a Provisional Order under the Local Government Act, 1888, conferring on the County Council of Pembroke additional borrowing powers up to the amount specified in the Order, in excess of the limit imposed by the provisions of section 69 (2) of the Act.

For Amendment of Local Acts.

Twenty-nine Provisional Orders were issued and confirmed during the year repealing, altering, or amending Local Acts. The following are brief particulars of the principal Orders :

Rates. Two Orders were made consolidating into one rate all the rates levied by the Local Authority.

Mr. Gibbon's evidence, which forms Part I of the Minutes of Evidence taken before the Commission, has been published and placed on sale as a Stationery Office paper, price 7s. 6d. (by post 7s. 11d.).