
justify making them liable for any insurance committee costs attributable to san-
itary default).
64
So was the creation of a new, centralised, health establishment
in Scotland in the form of the separate Scottish Insurance Commission under
the act.
65
National insurance, like most of the other Liberal welfare reforms of –,
virtually by-passed local government: as in – a major expansion of the
state’s welfare role was achieved without the aid of local authorities.
66
The reason
was clear enough: the education burden coming on top of the explosion of local
debt in the late nineteenth century had left local authorities wary of new duties.
From , when The Times launched an influential assault on municipal social-
ism, ratepayer politics began to concern itself more with reducing the rate
burden than with improving local services. Several ‘profligate’ authorities paid
the price in the borough elections of November , as did, most conspicu-
ously, the Progressive (i.e. radical Liberal) London County Council in March
. In these years urban authorities became increasingly anxious to secure a
reform of the local tax system that would ease their fiscal problems. Witnesses
before the Royal Commission on Local Taxation and the departmental
Kempe Committee which reported on the same subject in called for a wide
definition of services which could be considered ‘national’ rather than ‘local’ in
nature, with the implication that such services should be funded, totally or par-
tially, by the centre.
67
The only major change, however, in the midst of this the-
orising was a negative one: the conversion of the assigned revenues into a
Treasury grant, frozen at its – level, in . This was nothing less, as
Bernard Mallet claimed, than ‘a complete abandonment of the theory and prac-
tice of assigned revenues’.
68
Lloyd George, of course, envisaged a local tax on
site values in the budget, though with a national site valuation still far from
completion he was forced to fall back upon a conventional central subsidy, which
was then defeated by his own backbenchers.
69
John Davis
64
Hansard, Parliamentary Debates, Fifth Series (Commons) , cols. –. For the local author-
ity response see ‘The chancellor answered’, Municipal Journal, Nov. , and, for the aggrieved
reaction in one of the towns named, Harrogate Advertiser, Nov., Nov. .
65
I. Levitt, Poverty and Welfare in Scotland, – (Edinburgh, ), pp. –.
66
J. Harris, ‘The transition to high politics in English social policy, –’, in M. Bentley and
J. Stevenson, eds., High and Low Politics in Modern Britain (Oxford, ), pp. –, .
67
The Royal Commission’s Final Report (PP , pp. –) distinguished between ‘services
which are preponderantly National in character and generally onerous to the ratepayers and ser-
vices which are preponderantly Local in character and confer upon the ratepayers a direct and
peculiar benefit more or less commensurate with the burden’. The Kempe Committee consid-
ered that these words had ‘given rise to considerable confusion of thought in regard to the proper
amount of assistance to be given by the State to local authorities’: PP , Final Report of
the Departmental Committee on Local Taxation, England and Wales, p. .
68
B. Mallet, British Budgets, – to – (London, ), p. ; Baugh, ‘Government grants
in aid of the rates’, –.
69
For this fiasco see A. Offer, Property and Politics, – (Cambridge, ), pp. –.
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