Brits cut back on spending

Posted 2008-05-22

Brits are reducing their spending on fashion and luxury food items it has emerged.

Research conducted by Alliance and Leicester Current Accounts shows that almost 35 million Britons have made some form of financial cut back recently and one-third anticipate that their disposable income will decrease in the next six months due to the rising cost of living.

Fashion is the first indulgence that Brits are going without as they tighten their belts, with 39 per cent of respondents saying that they will not be hitting the high street.

A further 36 per cent will not be splashing their cash on socialising, while four-in-ten are reducing the amount they are spending on day-to-day living.

Emma Walkley, current account manager at Alliance and Leicester, said: “It seems many of us are feeling the pinch and looking for ways to cut back. The good news is that people are taking action now and looking at ways of making their money go further rather than burying their heads in the sand.”

This follows news from Moneysupermarket.com that increasing numbers of people are relying on payday loans to fund the cost of living, with the number of applicants for such loans rising by 55 per cent since September last year.

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