HC Deb 26 April 1990 vol 171 c468
3. Mr. Wood

To ask the Chancellor of the Exchequer what representations he has received on his proposal to extend save as you earn to banks.

The Economic Secretary to the Treasury (Mr. Richard Ryder)

The proposal responds to representations from the British Bankers Association and a number of individual deposit takers. It has been widely welcomed.

Mr. Wood

Has my hon. Friend been encouraged by the general response to my right hon. Friend's savings initiative? Does he believe that the biggest disincentive to savings is the fear of many potential savers that some future Government might devalue their savings, as happened under the previous Labour Government, all too disastrously for them?

Mr. Ryder

That is precisely what happened under the previous Labour Government, when we had negative real rates of interest. Small savers, particularly those nearing retirement age and the elderly, lost a great deal of money.