People are really starting to feel the financial pinch, according to a new Mintel report, British Lifestyles.
Exclusive consumer research shows that almost three in every five adults (57%) have recently had to cancel their spending plans because they were uncertain about their personal financial situation. And the first things to go were holidays, DIY and savings.
“People are clearly starting to get a sense that things are not as easy financially as they once were,” comments Peter Ayton, chief statistician at Mintel. “In light of the credit crunch, borrowing has now become harder and we’re likely to see even more people having to make sacrifices when it comes to their spending in the future.”
The most common reason for belt tightening is the rising cost of day-to-day living. However, what people may not realise, says Mintel, is that income tax and national insurance now take a greater proportion of their gross income, having increased from 14.6% in 1997 to an estimated 17.8% in 2007.
Furthermore, mortgages now account for 25% of consumer spending while 10 years ago this was nearer 14%.