Social insurance and allied services : memorandum on the Beveridge Report
1943-02-10 1943 1940s 24 pages 5. (d) That Education will not cost more than in 1938, i.e. £116 millions a year. (e) That there will be no new Housing programme and that Housing will cost no more than in 1938, i.e. £25 millions a year. (f) That the Exchequer subsidy for s...
| Institution: | MCR - The Modern Records Centre, University of Warwick |
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| Language: | English English |
| Published: |
10 February 1943
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| Online Access: | http://hdl.handle.net/10796/25CD5F96-4DA3-45A7-9F35-21FE767FA100 http://hdl.handle.net/10796/2F8F06FC-6D8A-48CE-9F4A-2CBD07168FCE |
| Summary: | 1943-02-10
1943
1940s
24 pages
5. (d) That Education will not cost more than in 1938, i.e. £116 millions a year. (e) That there will be no new Housing programme and that Housing will cost no more than in 1938, i.e. £25 millions a year. (f) That the Exchequer subsidy for stabilising the cost-of-living by controlling food prices (at present £120 millions a year) will fall to £50 millions a year. (g) That the cost of all other Services - other than the "Beveridge" Services - will be reduced from their present high level to their pre-war level, i.e. £270 millions a year. TABLE "B". PUBLIC EXPENDITURE BASED ON ABOVE ASSUMPTIONS. (Exchequer, Local Rates and Employers' & Workers' Payments). Service 1938 1945 1965 £ Mill. £ Mill. £ Mill. (A) Apart from "Beveridge" Services : (1) National Defence 250 250 250 (2) War Pensions & Civil Injuries 37 137 100 (3) Interest on National Debt 210 400 400 (4) Education 116 116 116 (5) Housing 25 25 25 (6) Cost of Controlling Food Prices - 50 - (7) Other Expenditure 270 270 270 908 1248 1161 (B) "Beveridge" Services 342 697 858 Deduct: 1250 1945 2019 Employers' Contributions 66) 325 137) 541 132) 534 Employees' Contributions 55) 194) 192) Interest on Insurance Fund. 9) 15) 15) Local Rates 195) 195) 195) Balance to be set by Taxpayer :- 925 1404 1485 (15) It will be seen that, notwithstanding the ultra conservative basis on which the above Table has been prepared, the position in 1945 as against 1938 would mean an increase in Public Expenditure of £695 millions - representing an increase of fully 55% and including :- (a) An increase of £71 millions in Employers' contributions. (b) " " " £39 " " Employees' " (c) " " " £479 " to be met by the Taxpayer. (16) It will further be noted that in 1965 the additional amount to be met by the Taxpayer would rise to £560 millions. It cannot, of course, be foreseen how far that increase of £560 millions would be raised by Direct or Indirect taxation. All that can be said today is that, if that sum had had to be met in 1938 solely from Income Tax when each additional 6d. on the tax yielded £30 millions, it would have increased the standard rate of tax in that year from 5/6d. in the £ to close on 15/-/
200/B/3/2/C216/5/50 |
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| Physical Description: | TEXT |