One third of Britons preparing to spend less
Growing pessimism about household finances means that almost a third of Britons expect to cut back on their spending this year, according to new research by Ipsos MORI for the Resolution Foundation.
In addition, around a quarter (23%) of adults questioned see their household finances worsening in 2012, with those on low to middle incomes the most pessimistic.
Research for the think tank also suggests that 30% of Britons spent less at Christmas than last year and that 19% can’t afford to go away on holiday in 2012.
At the same time, the proportion of respondents making monthly saving jumped from 22% in October to 30% in January and 17% of those questioned plan to reduce their personal debt, compared to 12% back in the autumn.
Only one quarter of those in work are expecting to get a pay rise this year, rising to 32% for higher earners.
Resolution Foundation chief executive, Gavin Kelly, comments: “Given this gloomy backdrop it’s a real worry that a new round of cuts to tax credits planned for April will further dampen the spending power of low to middle income families.”
He adds: “The longer households cut back on spending, the longer it will be before we see real economic recovery”.
The think tank’s study is based on responses from 1,993 British adults with data weighted to the national profile.
Category: Banking News, Borrowing & Lending News, Savings & Investment News
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