§ Mrs. LawrenceTo ask the Chancellor of the Exchequer what the outcome is of the Treasury's five-yearly review of National Savings. [132685]
§ Miss Melanie JohnsonGovernment's quinquennial review of National Savings was announced on 11 January. The review took a fundamental look at the strategic purpose of the functions carried out by the agency in the light of developing circumstances and Government policy. It then considered what organisational structure might best deliver the Government's policy objectives. In doing so, it looked at all the options on their merits, with the aim of identifying whether National Savings remains the most suitable way of delivering policy.
The review recognised the importance of recent innovations in National Savings to making the agency more efficient and more flexible. This includes the role played by outsourcing its operations. It is now better placed than ever to build on this achievement to modernise and adapt to the changing market in which it operates. It now has the potential to match the best in the financial services market, providing choice and good value products for savers and investors in the very competitive savings market.
The review sees these developments as central to National Savings continuing to make a valuable contribution to the cost-effectiveness of the national debt by offering attractive products and services to members of the public. It will set a clear and overarching objective to achieve cost-effective Government debt management. National Savings, which will remain a Government agency, funds a significant amount—over £62 billion—of the national debt. Taxpayers will continue to see the benefit of National Savings' contribution, which is more cost-effective than comparable gilt-edged securities.
This is also good news for existing National Savings savers and for future customers. National Savings will be working to give its current and new customers more attractive, more up to date products and services. People will also get more choice on how they access those products. In addition to being able to get National Savings products through the Post Office and by post as they do now, customers will in future be able to choose from a wide range of channels.
In taking forward the review's recommendations, National Savings will continue to modernise its activities to make and keep it relevant, efficient and cost-effective. This will involve focusing on developing those aspects of the business that can operate competitively and cost-effectively, and continuing to develop new products as well as embracing innovations and new ideas.
The outcome of the review will be taken forward in a new business strategy, and reflected in the framework document which governs the relationship between the Agency, the Treasury and Ministers.