§ 7. Mr. Trewasked the Chancellor of the Exchequer what was the average annual rate of increase of personal saving at constant prices per head of population between October, 1964, and June, 1970, and from June, 1970, to the latest available date.
§ Mr. Patrick JenkinComparing twelvemonth periods ending in June, the annual rate of increase in personal saving per head of the population at 1963 prices was about 1 per cent. between 1964–65 and 1969–70. On present provisional estimates the increase between 1969–70 and 1970–71 was 8 per cent.
§ Mr. TrewWould my hon. Friend not agree that this dramatic improvement is due both to Government cuts in taxation and to the feeling of confidence in the future under a Conservative Government?
§ Mr. JenkinI entirely endorse my hon. Friend's comment.
§ Mr. Joel BarnettIf the Financial Secretary is taking credit for increased savings, is he prepared to take the blame for the increase in unemployment involved in the same plan?
§ Mr. JenkinI do not think the two matters have anything whatever to do with each other. My right hon. Friend has made it abundantly clear that there is no question of planning the present level of unemployment.
§ Mr. EmeryIs it not normally the case that an increase in savings means an 1452 increase in investment and that increased investment is exactly what we require in order to deal with the unemployment position?
§ Mr. JenkinCertainly an increase in savings is needed if increased investment is to be achieved, and increased investment is confidently expected.
§ Mr. FernyhoughDoes the hon. Gentleman appreciate that the substantial increase in savings reflects the great fear of many working people that by this time next week, next month, or next year, they may be out of work, and they are trying to provide for that emergency?
§ Mr. JenkinI do not accept that at all. As my hon. Friend the Member for Dartford (Mr. Trew) said in his supplementary question, it is a reflection of the confidence that people have.