§ 23. Mr. A. Lewisasked the Chancellor of the Exchequer if he will state the worth of £100 sterling placed in the Post Office savings account in 1951 at present-day values, after allowing for the depreciation in the £ sterling and the accumulation of interest rates; whether he will give the annual change since 1951 in a £100 investment, allowing for the £'s annual depreciation and the accumulation of interest; and whether he will increase the present rate of interest.
§ Mr. MaudlingTaking June, 1951, as the starting point, £96 12s. The answer to the last part of the Question is "No, Sir".
§ Mr. LewisIs the Chancellor aware that since October, 1951, the only thing that has remained static is Post Office Savings Bank interest at 2½ per cent. In view of his enrapture with his figure of 3½ per cent., may we ask the Chancellor to consider increasing the Post Office savings figure by at least 1 per cent.? Surely people who have Post Office savings are entitled to some encouragement when they find that other interest rates have increased?
§ Mr. MaudlingNo, Sir. For a long time the policy has been to keep the interest rate level. Other interest rates have fluctuated both up and down. The Post Office provides facilities for the easy withdrawal of savings which are valuable, and the first £15 of savings are tax-free, so that I think there is a reasonable return.