§ 14. Mr. SpringTo ask the Chancellor of the Exchequer if he will make a statement on his policies to encourage saving. [7089]
§ Mr. JackThe Government believe in encouraging saving and rewarding thrift. That is why we reduced the rate of tax on savings income from 25 per cent. to 20 per cent. for basic rate taxpayers in the recent Budget, benefiting 14 million savers who are basic rate taxpayers. This builds on our successful schemes such as PEPs and TESSAs and reinforces the benefit to savers from the best inflation record for almost 50 years.