Britain: An official handbook > 1966

76
Loans
Control of Finance
Local
Government
Reorganisation
BRITAIN: AN OFFICIAL HANDBOOK
authorities, and the proceeds of the latter are passed on to the county council.
In rural districts the rate levied in each parish takes into account precepts
issued by the parish council or parish meeting. In Greater London the GLC
raises revenue by precepting on the London boroughs and the City. Rates
in Scotland are levied by the town councils in burghs and by county councils
elsewhere; to cover their expenditure, district councils levy a requisition
each year to the county council; a town council has to meet an annual requisi¬
tion from the county council in respect of the burgh’s share of the expenditure
on functions exercised by the county council throughout the county, including
the burgh. In Northern Ireland county councils are responsible for making,
levying and collecting the rates, except in such parts of the county as fall within
the jurisdiction of the county borough, borough, or urban district councils.
Loans may be raised by local authorities for financing such items of capital
expenditure as are sanctioned by the Minister of Housing and Local
Government, Secretary of State for Wales, the Secretary of State for Scotland,
or, occasionally, the government department responsible for the service for
which the capital is required. The Greater London Council applies annually
for parliamentary sanction to raise the money it needs for capital expenditure.
In Northern Ireland the government department responsible for the service
also issues the appropriate loan approvals. Borrowing powers for specific
purposes may also be taken under Acts of Parliament of local application.
Local authorities may raise long-term loans by issuing stock upon the
Stock Exchange and by private bonds which may or may not be quoted on
the Stock Exchange. Although these bonds may be for any period, local
authorities normally issue them for one year. Local authorities also have
right of access to the Public Works Loan Board, which is financed by the
Exchequer and also acts as lender of last resort to local authorities which
cannot borrow on reasonable terms on the market. Local authorities may also
borrow temporarily for a limited proportion of their outstanding loan debt.
Internal control of finance is exercised on behalf of the council concerned
by a finance committee, whose function it is to keep the financial policy of
the council under constant review. In England and Wales an external audit
is carried out (except for certain general accounts in most of the county
borough and about two-thirds of the borough councils) by district auditors
appointed by the Ministry of Housing and Local Government. County
borough councils must use the services of the district auditor for accounts
which relate to children and education, and local health and welfare services.
In both county and non-county boroughs rating and coast protection are
also subject to district audit. For their other accounts borough councils use
mainly professional auditors; a few use ‘elective audit’, which provides for the
appointment of three auditors: two elected by the local government electors
and one appointed by the mayor. In Scotland the accounts of each authority
are audited by a professional auditor appointed by the Secretary of State for
Scotland and paid by the council concerned, and in Northern Ireland by
special local government auditors appointed by the Ministry of Development.
In the seventy years since the existing local government structure was set
up, the population of England and Wales has grown by nearly 14 million, the
greatest concentration of people being in the London area and the five other
conurbations of England (see p. 17). At the same time, the number and
scope of local authority activities have progressively increased: local authorities
are nowadays responsible not only for most of the environmental and personal