§ 21. Mr. Osborneasked the Chancellor of the Exchequer if, in view of the higher rates of interest now being offered on new British Government issues, he will increase the interest paid on National Savings Certificates, and so encourage the voluntary workers in the movement.
§ Mr. R. A. ButlerNo, Sir. The present rate of interest is still generous bearing in mind that it is not subject to Income Tax. The large increase in the sales of National Savings Certificates since I raised the limit on holdings supports this view.
§ Mr. OsborneSurely the Chancellor is aware that the weekly wage earner gets no element of tax-free advantage on the interest, and, since it is the weekly wage earner whose savings we need to attract, will he not increase the nominal amount of interest so as to give these workers more encouragement to save?
§ Mr. ButlerI am always ready to consider anything which would help the Savings Movement, but I am satisfied that the steps I have recently taken have had effect, and we had better see how they work out.