§ 33. Mr. Nicholas Winterton
To ask the Chancellor of the Exchequer what measures he has taken to encourage saving. 770W
§ Miss Melanie Johnson
The Government's strategy is two-fold. Firstly, it is to ensure economic stability, including low and stable inflation. High and variable inflation, such as the UK experienced in the past, discourages saving. The Government has reformed the macroeconomic framework to build a sound and credible platform of stability: inflation is close to target and expected to remain so. This will encourage savings and investment.
Supporting this is the introduction of a variety of measures. These include tax free individual savings accounts (ISAs) for short term at-need savings; pensions, especially stakeholder pensions, for planning for retirement; improved transparency and value of savings products, such as CAT standards for ISAs and pooled pensions investments (ppis); better regulation of the financial services industry through the Financial Services and Markets Bill; and raising consumer awareness, such as the Financial Services Authority's plans for comparative information on savings and investment products.