§ 14. Mr. Cantasked the Chancellor of the Exchequer whether he is aware of the fall in personal savings as a proportion of national income; and whether, in this context, he will make a statement regarding the formation of a State unit trust.
§ Mr. CallaghanThe latest figures show that the ratio of personal savings to disposable income has remained at about 8 per cent. during the past three years.
I have no further statement to make at present about a State unit trust.
§ Mr. CantWould the Chancellor say whether, in his Budget strategies, he is not dealing a death blow to savings in the public sector? Is he aware that I am concerned because he is quite obviously financing so much of his below-the-line capital expenditure by forced savings through taxation?
§ Mr. CallaghanIt is quite true, of course, that we have got a very large Budget surplus this year, but that should be a matter for opprobation and not denigration.
§ Sir Knox CunninghamWould the right hon. Gentleman say if such a State unit trust would simply mean that it invests in Government securities and, if not, how would that help savings in the public and State interest?
§ Mr. CallaghanAs I said in my original Answer, I have no further statement to make at the moment.
§ Sir G. NabarroHow does the right hon. Gentleman conceive the idea that unnecessarily onerous taxation and an unnecessarily large Budget surplus is a matter of approbation to the nation, though it may be a matter of approbation to him personally?
§ Mr. CallaghanThe hon. Gentleman is putting words which I did not use into my mouth.
§ Sir G. NabarroThe right hon. Gentleman said "approbation".
§ Mr. CallaghanI said that it was a matter of approbation to have a large Budget surplus out of which to finance necessary borrowings by local authorities and nationalised industries. I do not see how that can be denied.