Brexit uncertainty puts Brits on hold
New research from Gocompare.com suggests that uncertainty about the fallout following the UK’s decision to leave the EU means that many Brits are putting their lives on hold.
Concerned about their (and their children’s) future prospects, 36% of people said as a result of Brexit they are more cautious about their spending. Over a fifth (22%) are delaying major purchases until the impact of the decision to leave the EU becomes clearer.
The survey of over 2,000 UK adults found that two fifths of people are worried that the UK economy will go into recession and, 30% think that they will be worse off in a year’s time. Only 18% felt that their financial situation will be better off post Brexit and 17% thought that their children’s financial prospects would be improved.
To protect themselves against the consequences of Brexit, 16% of those surveyed said they plan to save more money, 8% plan to repay their debts more quickly.
The vote to leave the EU has also caused some people to delay a range of purchases: 19% are putting off a foreign holiday; 13% have delayed the decision to buy a car; 12% have delayed moving house.
The survey also found that many people are concerned about foreign financial services companies leaving the UK post Brexit. Only 22% of those surveyed expect things to remain as they are, just over a fifth (21%) are concerned that foreign owned financial providers will leave the UK market.
Commenting on the research, Matt Sanders from Gocompare.com said, “Post Brexit the UK now faces an uncertain future and in the immediate aftermath of the referendum result it’s impossible to accurately predict the full consequences of the decision to leave. Our survey suggests that many people don’t feel confident about the financial future of the UK therefore, it’s no surprise that some people are cutting back their spending and are looking to weather the potential storm by increasing their savings.
“Just under a third of people taking part in our survey are concerned that they’ll be worse off in a year’s time. One effective way these people can make savings on their household expenditure and financial products is to switch and save. Using a comparison website can help stretch your income by making it easy to compare a wide range of products and services from utility providers, mortgages, mobile phone deals to credit cards, car and home insurance. As well as switching and saving, people looking to increase their savings should make sure they take advantage of the tax-efficient savings products such as ISAs.”