Over 30% of UK adults expect to spend less in 2012 compared to just 20% in October 2011, suggesting that more British people have become even more pessimistic about their finances this year.
The survey carried out by Ipsos Mori on behalf, the Resolution Foundation, who are an independent research and policy think tank organisation which aims to improve outcomes for people on limited income suggests that people have become more pessimistic about their finances since autumn last year, when the Eurozone crisis worsened.
23% of respondents to the survey said they expect their financial situation to deteriorate over the next 12 months, compared with just 15% in October 2011, when the survey was last carried out.
The latest survey also found that more people are now saving, with 30% of respondents saying they were putting money away every month, compared with 22% in October 2011.
20% of respondents to the survey also said they would not be able to go away on holiday this year.
The Resolution Foundation’s Chief Executive, Gavin Kelly said: “The longer households cut back on spending, the longer it will be before we see real economic recovery.”
The survey is part of a wider report by the Resolution Foundation, called ‘Squeezed Britain’, highlighting the pressures on low and middle-income households.
Last week, housing charity Shelter warned that more than a third of people have cut back on their food bills in the last year, in order to pay their mortgage or rent, representing an increase of 44% since 2008.
Campbell Robb, chief executive of Shelter, said: “These staggering findings show just how many millions of people are cutting back on essentials as the continued squeeze on incomes starts to really bite.”
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