HC Deb 26 October 1955 vol 545 cc220-1

I come now to personal consumption. The measures which I have so far described are directed to controlling the growth of expenditure in the public sector. They need, therefore, to be supplemented by a policy to deal with the growth of personal consumption. Restraint in this field can be achieved by self-discipline no less than by external compulsion; and I am anxious to give every encouragement to those who are willing to forgo a little of the luxury of immediate spending for the sake of the future well-being of their country.

Last April, I paid tribute to the results of the National Savings Movement's campaign for 2 million new savers, and the great success achieved in raising the level of new savings. I should like to thank hon. and right hon. Members on both sides of the Committee for the part they have played. I renew my thanks to the Movement, its leaders and workers alike; and I urge them to remember that their efforts are even more important today. If hon. Members will turn to Table 27 of this year's National Income Blue Book they will see the great rise in personal savings, under this and the last Administration, since 1951. In particular, the amounts invested through the National Savings Movement increased by £86 million in 1954, and the first nine months of 1955 show a further increase of some £80 million.

The Committee are aware that a new Defence Bond will be available on and after the 1st November, with the same bonus and limit on holdings as the present Bond but carrying interest at 4 per cent. I have also looked at the National Savings certificate very closely in order to be sure that it does all that it can to attract real savings. Lord Mackintosh has represented to me that an increase in the limit of holdings would be of very timely assistance to the Savings Movement. The Government have, therefore, decided to give the Movement this encouragement, and to increase the maximum permitted holding of certificates of the current issue from the present figure of 1,000 units or £750, to 1,200 units or £900. This measure, like the new Defence Bond, will come into effect on 1st November. These are fresh and attractive incentives, and I am confident that the National Savings Movement will rise to both the needs and opportunities of the present time, backed by public opinion and by hon. Members on both sides of the Committee.