Since upgrading to 31.4.0 my Reply messages are not saved.

When sending a Reply I get an error message "There was an error saving the message to Sent. Retry?" Clicking OK brings the same error message again and again. Cancelling or closing the error message stops the error message, but my Reply is not saved, though I've subsequently confirmed that it is indeed sent.

Hi Jonty, and a warm welcome to the forums!
If I could see how to post a screenshot I would as this might help for you to see the problem.
Find a place to host the pic online, then Look at this post telling how to format (including adding graphics) posts for Apple Discussions...
http://discussions.apple.com/thread.jspa?messageID=607563
Not certain, but this can fix myriad Mail problems...
Safe Boot from the HD, (holding Shift key down at bootup), it will try to repair your Disk Directory while the spinning radian is happening, so let it go, run Disk Utility in Applications>Utilities, then highlight your drive, click on Repair Permissions, then move these folder & file to the Desktop.
Move this Folder to the Desktop...
/Users/YourUserName/Library/Caches/Mail/
Move this file to the Desktop...
/Users/YourUserName/Library/Mail/Envelope Index
Reboot.

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