§ 14. Mr. Le Marchantasked the Chancellor of the Exchequer what steps he proposes to take to encourage savings through life assurance and unit trusts.
§ 34. Mr. Michael Shawasked the Chancellor of the Exchequer what steps he is taking to encourage saving through building societies.
§ Mr. HigginsI am not yet ready to add anything to the answers my right hon. Friend gave on savings on 3rd November.—[Vol. 805, c. 832.]
§ Mr. Le MarchantIs my hon. Friend aware what an advantage it would be to the insurance industry if it were exempted from paying short-term capital gains tax, and equally if unit trusts were exempted from capital gains tax—[HON. MEMBERS: "Reading."]—quite right; I am sorry—where there would be no net disinvestment.
§ Mr. HigginsCertainly I will take into account the point made by my hon. Friend in the general review of this question. [HON. MEMBERS: "Reading."] On the contrary, I was making it up as I went along. The important point here is to increase the total savings so that the postponement of consumption leads to the release of resources for investment and other uses.
§ Mr. Michael ShawDoes my hon. Friend accept that it is important that of those savings a proper proportion 1099 should continue to flow to building societies to assist the drive for greater home ownership?
§ Mr. HigginsI agree with my hon. Friend. The question of balance is very important, because without that we are unlikely to increase the overall total, which must be the prime object of our policy.