He hopes this fall in saving will continue to boost spending (just as it did before the financial crash), even though the report expects that those with insufficient savings will have to finance spending through borrowing on credit cards or loans.

The report sees “risks associated with households’ saving”, because if households realise interest rates will not rise, they might rein in spending as a precaution, particularly if they are already heavily in debt. It also points out that many old people are having to work beyond retirement age, because their savings have been savaged by low interest rates. It makes no mention of the millions whose income and savings have been depleted by five years of record low interest rates.

As McKinsey recently pointed out, this interest rate policy has cost UK households £110bn more in lost income than they have saved from lower borrowing costs.

This crisis was caused by excessive debt, yet the Bank of England wants the already historically low level of savings to be cut still further.

Household saving used to average 8-11%, but is currently only 5% and the Bank hopes it will fall to 3%.

This, at the same time as the Government wants more people to save for their pensions through auto-enrolment.

Choosing to run down the nation’s saving is appallingly short-sighted.

It leaves families more vulnerable to a risk of unexpected hardship, it risks future retirement prospects, it increases the burden on the state from those who cannot support themselves in old age and it stifles investment.

Saving is not a “risk”. Saving is vital if we are to have a sustained recovery.

Investment, so desperately needed for British business, is dependent upon savings. We have seen all too clearly what happens when you try to grow an economy on household debt and the running down of savings.

To do it again risks an even greater crisis.

Simon Rose is from the campaign group, Save Our Savers