§ 10. Mr. Adley
asked the Chancellor of the Exchequer what was the change in the proportion of personal disposable income taken by personal savings between the first half of 1959 and the second half of 1964, and between the second half of 1964 and the first half of 1970; and what is the figure for the most recent convenient period of six months.
§ Mr. Higgins
Between the first half of 1959 and the second half of 1964 personal saving as a percentage of personal disposable income (seasonally adjusted) changed from 5.0 to 8.5 per cent.; between the second half of 1964 and the first half of 1970 it changed from 8.5 to 8.4 per cent. and in the second half of 1970 it was 8.6 per cent.
§ Mr. Adley
While thanking my hon. Friend for those figures, may I ask him to confirm that there is a direct relationship between savings and taxation; in other words, more savings means less taxation? Would he do his best to persuade his right hon. Friend to continue to encourage savings by small savers?
§ Mr. Higgins
I can most certainly accept that there is a very clear relationship between savings and taxation because, naturally, the voluntary postponement of consumption provides the funds for investment and gives us more scope for reducing taxation.
§ Mr. Barnett
Have the Government made an estimate of the effect on small savers of the Government's action in respect of the Mersey Docks and Harbour Board and workers' shareholdings in Rolls-Royce?