§ 1. Dr. Kingasked the Chancellor of the Exchequer by how much Post Office savings have increased since he introduced the tax exemption on the first £300 of savings.
§ The Economic Secretary to the Treasury (Mr. Anthony Barber)Between July, 1956, when the Income Tax concession first applied to the first £15 of interest, and the end of 1959 the amount remaining invested in the Post Office Savings Bank fell by £32 million.
§ Dr. KingIs the Minister aware that, in spite of these figures, the excellent reform that he introduced has encouraged small investors to invest their money in Britain and that this is a very useful thing indeed?
§ Mr. BarberI entirely agree with what the hon. Gentleman has said. It is a fact that after the concession was introduced there was a distinct reduction in the rate of outflow of funds from the Bank, and, indeed, if one considers the year 1959, the amount remaining invested in the Post Office Savings Bank increased by £32 million.