326 THE BRITISH APPROACH TO POLITICS

precepting, on the Metropolitan Boroughs and the City for the
general rate, and on the Metropolitan Boroughs alone for a
small special rate. Recently the rateable value has begun to decline,
as more of the population have gone to live in less crowded
quarters outside the County boundary, though many of them still
work in London, and make use of London's municipal services.
This will, in course of time, create a financial problem for the
County, and perhaps a new authority will be set up to rule that^
Greater London which now spreads over parts of Essex, Kent
and Surrey, and almost the whole of Middlesex.

Government grants and revenue from land owned by the
Council raise the total income to £40,000,000. This sum the
Finance Committee has to apportion among the various services.
Thus, out of every £ taken from the ratepayer, y/- is spent on
education, 5/6 on public assistance, 6d. on housing and y/- on
the general services which contribute to health, safety, and amenity.
For these, there is also available the General Aid Grant under
the 1929 Act, and for education and housing the specific grants.
Much of the expenditure now being incurred to deal with slums
^nd overcrowding, is, of course, capital expenditure, and tijere
are further capital items in connection with the other services;
whereas an ordinary local authority can get permission from a
Government Department for its loans, the L.C.C. must present
to Parliament each year a Money Bill outlining its proposed
capital expenditure for each separate purpose for eighteen months
ahead. In order to give some elasticity to this arrangement, the
Council frequently puts in its Bill figures well above what it
will be able to spend on capital account. The Council's present
debt is about £75,000,000 of which rather more than half has been
caused by housing. The Chairman of the Finance Committee, J
like the Chancellor of the Exchequer, has to study the Money
Market, seeking the most favourable times for fresh borrowing,
and for repayment of old debts. The Council is creditor as well as
debtor, since it can lend money to the Metropolitan Boroughs;
further, it is the authority to which they must apply for permission '