§ Mr. Ralph Howellasked the Chancellor of the Exchequer what would be the cost of increasing the effective rates of interest on all forms of national savings, quoted separately, to bring them up to 1½ per cent. above the current inflation rate.
§ Mr. LawsonIt is not possible to provide any accurate estimate of the possible costs involved. The overall effects on borrowing costs of the proposed increases would depend critically on, among other things, future levels of interest rates, inflation and taxation and the reaction to the changes by savers.