21. Mr. Edward M. Taylorasked the Chancellor of the Exchequer what was the net increase in National Savings in 1968; and what were the comparable figures in 1966, 1964 and 1962, respectively.
§ Mr. Harold LeverProvisional figures show that the level of National Savings outstanding including accrued interest rose by £70 million in 1968. The corresponding figures for 1966, 1964 and 1962 were a fall of £30 million, and rises of £357 million and £238 million respectively.
Mr. TaylorDoes not the hon. Gentleman agree that the figures are disappointing in present circumstances? Can he give an assurance that soon there will be a new initiative to encourage National Savings—in particular, a "save-as-you-earn" scheme?
§ Mr. LeverNaturally we have a special interest in the success of the National Savings Movement, but our paramount interest is in the total of savings, which has held up very well. I can give the hon. Gentleman the assurance he asks for in the latter part of this supplementary Question.
§ 23. Mr. Biffenasked the Chancellor of the Exchequer what is the total of National Savings, including accrued interest, for the year to date; and what percentage change this represents from the corresponding period for the preceding year.
§ Mr. Lever£70 million net during the year to 31st December, 1968. This is about 46 per cent. less than the net receipts during 1967.
§ Mr. BiffenAs this covers a period when average incomes had been rising substantially—certainly faster than the guidelines indicated by the prices and incomes policy—to what reason does the right hon. Gentleman ascribe the reluctance of the British public to lend their money to the Government?
§ Mr. LeverIt is a gross distortion of the true position to say that an additional loan of £70 million this year by the British public to the National Savings Movement on top of the vast sums already there can be described as a reluctance to lend money to the Government. There is certain to be a flow between the National Savings Movement and other savings media. This is inevitable in our kind of society.
§ Mr. Patrick JenkinSince the figure is one-fifth of what it was in 1964, does it not reflect a reluctance?
§ Mr. LeverNo, Sir. It can equally be said that there has been an increasing desire on the part of the public to invest in other media which have been presented to them in a particularly attractive way. This is one of the reasons why my right hon. Friend is examining different methods of encouraging savings in different ways.