§ Mr. FrenchTo ask the Chancellor of the Exchequer what action he has taken to encourage savings in national savings schemes.
§ Mr. RyderThe Government wish to attract into national savings funds which investors will leave untouched for several years. They therefore introduced the capital bond last January, offering a taxable guaranteed return of 12 per cent. a year if held to maturity after five years. The Government also aim to provide through national savings a fair return on the savings of non-taxpayers. Interest on national savings income and deposit bonds, and on deposits in the national savings bank investment account, is therefore paid or credited gross of income tax. The Government recently announced that the interest rate on these products would be increased by 1 per cent.