HC Deb 24 October 1973 vol 861 cc533-4W
Mr. John

asked the Chancellor of the Exchequer what is the average present capital value of £100 of Government securities purchased in 1950.

Mr. Nott

It is not possible to make a meaningful comparison because so much of the stock available in 1950 has since been redeemed at par or converted.

Mr. John

asked the Chancellor of the Exchequer if he will now take steps to protect investors in British Government securities against the loss of capital value of these investments.

Mr. Nott

Prices of negotiable fixed?interest securities inevitably fluctuate to reflect movements in the general level of interest rates and market conditions. For this reason, the Government could no' undertake to guarantee the holders of these securities against market fluctuations: for those who do not wish to run the risk of fluctuations, they provide national savings securities, which are re deemable at par at short notice.

The upward trend in the general level of interest rates since the war, which has depressed the prices of some Government securities, is a by-product of inflation. A successful outcome to the Government's current counter-inflation policy is the best way of protecting investors.