HC Deb 05 March 1940 vol 358 cc210-1
51. Mr. Cary

asked the Chancellor of the Exchequer whether the increased volume in national income and wages is prompted only because of an increase in the general cost of living and whether he will give an undertaking that no scheme will be introduced which would deprive the individual, after the orthodox claims of direct and indirect taxation have been met, of the full use of earnings?

Sir J. Simon

The relation between variations in national income and variations in the cost of living is too complex a matter to be dealt with adequately in reply to a Question. As regards the second part of the Question, the Government are confident that their appeal that everyone should save and lend to the State as much as possible of their net income will continue to meet with a response commensurate with our great and unprecedented needs. So long as this is the case, the question of introducing schemes such as those referred to in the second part of the Question is less urgent. But clearly I cannot at this stage give any final undertakings as to how the war will be financed throughout its duration.

54. Mr. Lyons

asked the Chancellor of the Exchequer whether any decision has yet been reached with regard to a scheme for compulsory national savings?

Sir J. Simon

I would refer my hon. and learned Friend to the reply which I have just given to my hon. Friend the Member for Eccles (Mr. Cary).

Mr. Lyons

May I ask the right hon. Gentleman whether this scheme, which has been discussed outside the House, will, within a short time, be discussed in this House before a definite decision is come to for or against?

Sir J. Simon

Perhaps my hon. and learned Friend will be good enough, at his leisure, to look at the answer I have given.

Mr. Gallacher

Is the Minister aware that what is gained by compulsory savings will be lost by the compulsory means test?