HC Deb 26 January 1956 vol 548 c359
53. Sir F. Medlicott

asked the Chancellor of the Exchequer if, in order to provide further encouragement for savings, he will exempt from Income Tax all interest due to individual taxpayers up to a limit of £50 per annum.

Mr. H. Brooke

My right hon. Friend is not yet in a position to make any statement on the important question of incentives to save. In any case my hon. Friend will realise that his suggestion would be a matter for the Budget, which I cannot anticipate.

Sir F. Medlicott

Will the Minister recall what was said only a few minutes ago by the Economic Secretary about the vital importance of saving to the check on inflation? Will he also bear in mind that some Income Tax relief of this kind might not only lead to a spectacular increase in savings but would, almost for the first time in this century, mean that thrift would be rewarded instead of being penalised?

Mr. Brooke

My right hon. Friend the Chancellor has already shown to the House how much importance he attaches to incentives to save, but these tax matters cannot be discussed in advance of the forthcoming Budget.