THE CONTRIBUTION OF LOCAL AUTHORITIES TO THE SCOTTISH NATIONAL INCOME 1931–19501
| Date | 01 November 1957 |
| Published date | 01 November 1957 |
| DOI | http://doi.org/10.1111/j.1467-9485.1957.tb00234.x |
THE CONTRIBUTION
OF
LOCAL, AUTHORITIES
TO
THE SCOTTISH NATIONAL
INCOME
1931- 1950’
‘
NATIONAL
INCOME
’
estimates for the regions
of
the
U.K.,
particularly
regions like Scotland, Wales and Northern Ireland which have con-
siderable political and social significance, is a development which has
been pursued by a number of investigatoma Advantage is taken here
of
Professor A.
D.
Campbell’s estimates of the Scottish national
income to go a step further and ask how the contribution thereto of
Scottish local authorities changed over the period 1931-1950. The
incomes and expenditures of the local authorities
on
which the answer
to this question is based are first presented in the kind of account
which would, if a systematic set of accounts for the Scottish economy
existed, almost certainly feature therein
as
it features in the Central
Statistical Office’s annual Blue Book.3 The account conveniently
portrays some developments
in
the local authorities’ activities. The
ensuing comparison with Prof. Campbell’s estimates of the relevant
heads of income and expenditure in the account indicates the extent
of the well-known diminution during the period in the rdle, strictly
the economic rdle, of local government.
An
essential requirement for the exercise is information
on
the
payments by Scottish local authorities to their employees and original
estimates of these payments are presented. These estimates are
of
interest in themselves for two reasons. Firstly, they make possible
rough
comparisons.
at the beginning and end of the period, of the
share of Scottish local authorities
in
the Scottish labour bill with the
proportion of the Scottish labour force employed by Scottish local
1
We wish to thank Miss Phyllis Deane and
Mr.
I.
E.
G.
Utting
of
the
Department
of
Applied Economics, Cambridge, and
Dr.
P.
G.
Richards and
Mr.
C.
J.
Thomas of the University, Southampton,
for
their constructive
comments on an earlier draft, and Mr.
J.
A.
C.
Brown
of
the Department at
Cambridge
for
statistical ,advice.
2
A. D. Campbell, Changes in Scottish Incomes,
1924-49
’,
Economic
Journal,
1955.
A.
D. Campbell,
‘
Income
’,
Chapter
V
of
The Scottish Economy,
ed. by
A.
K.
Cairncross (C.U.P.
1954).
The Social Accounts
of
the Welsh Economy
1948
to
1952,
ed. by Edward
Nevin. (Welsh Economic Studies No.
1,
University
of
Wales Press,
1956.)
N. Cuthbert,
‘
Total Civilian Income in Northern Ireland
’,
Journal
of
the
Statistical
and
Social Inquiry Society
of
Ireland,
104th Session,
1950-51.
C.
F.
Carter and Mary Robson, ‘A Comparison
of
the National Incomes
and Social Accounts
of
Northern Ireland, the Republic
of
Ireland and the
U.K.’,
Journal
of
the Statistical and Social Inquiry Society
of
Ireland,
108th
Session,
1954-55.
e.g.
National Income and Expenditure
1956,
p.
38.
See
also Nevin,
op.
cit., p.
10.
207
208
E.
B. BUTLER AND
J.
J.
MCGIBBON
authorities. Secondly, they help to fill
a
small statistical gap. Local
authorities are sufficiently important employers to make it desirable
to know their total payments for labour? The form of British economic
statistics is such that the most convenient general approach to estimat-
ing labour bills is an industry by industry approach on the basis of
the Standard Industrial Classification. The local authority sector
extends, however, over many industries (e.g. public administration,
building and contracting, education, transport) and it is not easy in all
cases to distinguish its contribution to the several labour bills. Since
1949/50 an official figure has been published of the wages and salaries
paid by English and Welsh local a~thorities.~ The desirability of
similar estimates for Scotland has been noted.’
The
Scottish estimates
given here are not however quite comparable to the official English
and Welsh figures
;
they include, for example, superannuation pay-
ments.
I
PARTICIPATION
OF
SCOTTISH
LOCAL
AUTHORITIES
IN
THE
SCOTTISH
ECONOMY
Procedure and Definitions
The extent of the participation of Scottish local authorities in the
Scottish economy has been assessed for four years only (the financial
years’ 1931/32, 1938/39, 1947/48,
1949/50).
The trend
of
change is,
it is presumed, adequately revealed. The heavy work entailed in
estimating the labour bills in any case precluded a much fuller cover-
age. The four years were chosen partly because of the striking contrast
in
general economic conditions between the first and last years and
partly for reasons more particular to local authorities. 1931 /32 was
the second year of operation of the Local Government (Scotland) Act,
1929, which radically transformed the structure of Scottish local govern-
*
See, e.g.,
I.
E.
G. Utting,
Social Accounts
of
Local Authorities,
p. 57.
(National Institute
of
Economic
&
Social Research, Occasional Paper
XVI,
C.U.P. 1953.)
6
Loco1
Government Financial Statistics,
p. 12. (Ministry
of
Local Govern-
ment and Planning, 1951.)
Report
of
the Inter-departmental Committee
on
Social and Economic
Research,
p.
22. (Lord President’s Office, 1956.)
‘The financial year
of
Scottish local authorities ends in most cases on
the 15th May, but
for
Edinburgh it
is
the 28th May,
for
Aberdeen and Glasgow
the 31st May, and there are still other dates for miscellaneous authorities like
Harbour Authorities and Fishery Boards. See
Report
of
the Interdepartmental
Committee
on
Social and Economic Research,
p. 32. In compiling
Local
Financial Returns
the Scottish Home Department combine the appropriate
financial years
of
the various authorities without adjustment
for
the years’
slight differences
of
commencement and termination.
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