Do they really want us to save?

I wouldn't suggest that there is a conspiracy to plunge us into a squalid socialist republic, - it's more like misguided and bumbling incompetence, but incentives to save are fast disappearing.

We know of the raid on pension funds by Gordon Brown very early on and which continues, of course.

We know that some personal tax allowances are reduced pound for pound for any income you have provided for yourself over £17,000 or so.

We also know that the floundering government has held down interest rates for too long and encouraged debt, until inflation caused them to rise slightly before panic sent down them rapidly. So we have reached the point where there is little financial incentive to save.

Now this week we have the government almost admitting some culpability in the Equitable Life scandal, - I am not sure whether they did accept the fault that everybody agrees on. There is no assurance of an immediate or substantial payment as more people will spend years looking at what has been established before an "ex gratia" payment may be made, not, you will notice, compensation. If and when the moment arrives, and most policyholders are dead, it is unlikely to be full coverage for losses, and there is even the suggestion of "means testing". Never mind, your heirs may benefit slightly, even if you have been reduced to penury!

Could there be a bigger disincentive to saving? In the end you cannot do much in a democracy about a rapacious and uncaring government except replace them after five years, but if we are ever to repay most of the new debt and move into a position of self-reliance again, something radical will have to change.

in 1997 we were saving over 10% of our incomes, the banks had deposits from which they could lend to mortgage seekers, and we could hope for some addition to the derisory state retirement pension. This has been much changed now. We save less than 1% of our incomes, and many are heavily in debt, taxes may well have to rise to pay Brown's extra debt, the banks had to borrow among themselves and were led to take "poisonous" assets.

Could there be a greater indictment of government policy on savings?