HC Deb 05 February 1953 vol 510 cc2021-2
54. Sir W. Smithers

asked the Chancellor of the Exchequer if, when considering the forthcoming Budget, he will consider the advisability of exempting from Income Tax Post Office Savings Bank deposits up to £500.

Mr. Boyd-Carpenter

I am afraid not.

Sir W. Smithers

In spite of the disincentive to saving in the comprehensive Welfare State, will my hon. Friend ask his right hon. Friend the Chancellor to do all he can in his Budget statement to encourage thrift by these small and deserving people?

Mr. Boyd-Carpenter

My right hon. Friend is always anxious to encourage thrift and will certainly take all reasonable measures to that end.

Sir W. Smithers

Why does he not do something about it then?

Mr. Nicholson

Is my hon. Friend aware that many small depositors were ignorant of the fact that interest on Post Office Savings accounts was subject to tax, and will he instruct the officers at the Inland Revenue to see that some measure of clemency is extended towards them?

Mr. Boyd-Carpenter

I can assure my hon. Friend that these people, whose difficulty I appreciate, will be treated reasonably.

Mr. Woodburn

Is the hon. Gentleman aware that a great many people have no knowledge of the different ways in which they can put their savings at the disposal of the nation? Will he cause to be issued for the information of the small saver a simple explanation of the advantages of the different forms of investment?

Mr. Boyd-Carpenter

I should be glad to look into that suggestion but, as the right hon. Gentleman is no doubt aware, the savings committees in England and Wales and Scotland do issue a good deal of publicity on this point.

Mr. Cole

Can my hon. Friend say whether it would be possible to devise a system of saving, in addition to that provided by National Savings Certificates, which would allow the interest on small deposits to be free of tax?

Mr. Boyd-Carpenter

Not without notice.