HC Deb 15 February 1972 vol 831 cc224-5
9. Mr. Hunt

asked the Chancellor of the Exchequer what has been the total growth in National Savings since June, 1970.

Mr. Higgins

The total amount invested in National Savings in June, 1970, was £8,500 million. By December, 1971, this figure had risen to £9,216 million—an increase of £716 million or almost 8½ per cent. in the 18 months.

Mr. Hunt

Do not these excellent figures reflect confidence in the integrity and ability of the Government? To maintain the momentum of this National Savings boom, will my hon. Friend ask the Chancellor of the Exchequer to consider further tax incentives to saving in the coming Budget?

Mr. Higgins

My hon. Friend's first remark is correct and is true also of the previous period of Conservative Government. This figure contrasts with the 4½ years prior to June, 1970, when National Savings increased by only £134 million. It is important as a long-term measure to do everything possible to encourage savings. On the specific point raised by my hon. Friend, I am sure he does not expect me to anticipate anything which my right hon. Friend may say in his Budget speech.

Mr. Heffer

Does not that figure prove precisely the opposite—that the growth in National Savings is because people are becoming worried about their future, and, under a Tory Government, are putting their money into savings because they fear that they will soon be unemployed?

Mr. Higgins

I do not think that is so. As I say, higher savings provide a firm foundation for a period of sustainable economic growth and higher employment, and that is what we are determined to achieve.

Sir G. Nabarro

Without in any way being tempted to anticipate the Budget, will my hon. Friend bear in mind that the present Prime Minister when speaking from the Opposition Front Bench in 1965 promised the abolition of capital gains duty on unit trusts? As unit trusts are a formidably important source of new savings, will my hon. Friend study the Prime Minister's undertaking on that earlier occasion?

Mr. Higgins

I will certainly bear in mind the point raised by my hon. Friend, but of course this matter obviously comes within the scope of the Budget.

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