HC Deb 01 August 1978 vol 955 cc241-2W
Mr. Arthur Lewis

asked the Chancellor of the Exchequer why he will not arrange for a specified quantity of gilts and Government stocks to have a tax-free return on interest payments on a similar basis to certain national savings certificates in order to encourage investment in such holdings.

Mr. Robert Sheldon

The terms of the various forms of Government borrowing, including gilt-edged securities, national savings facilities and other instruments, have to be suited to the different categories of potential lender so that the Government can finance their borrowing requirement with due regard to the monetary effects of such borrowing and to the total costs of so doing, including that of any tax concession. I am not satisfied that a change of the type suggested by my hon. Friend would lead to the borrowing requirement being met more effectively in relation to monetary policy or at a lower total cost.