Brits see the New Year in on a modest budget

Staying in for New Year’s Eve is the new going out, according to a survey by leading independent personal finance information site Fool.co.uk.

Over a third of Brits plan to spend the stroke of midnight on New Year’s Eve in their own homes. And, despite it typically being a night for champagne, fireworks and posh frocks, the average spend is a relatively thrifty £30.

The average New Year’s Eve expenditure will be £30.48

Seven out of ten people (71%) will spend New Year’s Eve at home, accompanied only by their very nearest and dearest

Only one in fifty (2%) people will be hitting the town to see in 2008

Nearly a third (33%) of those questioned stated that the majority of their cash will be spent on drink, but a surprisingly low 17% of spending will go toward celebratory food – suggesting a few hangovers to come on 1 January.

Transport will suck up another 4% of the budget, and preening in the hope of securing that midnight kiss also adds up to a twelfth (8%) to the budget for most. Entry to bars, clubs or events eats up another 5% on average, with the remainder being spent on other goods, such as fireworks, party favours and decorations to make the night go off with a bang.

On the big night 50- to 57-year-olds anticipate spending a modest £26, with their counterparts aged 18 to 25 allowing £8 more for their celebrations. The novelty of a new year seems to have been lost on people over the age of 58 - a third will be staying at home, and few plan to spend more than £20.

Residents of Northern Ireland are most likely to spend the night out partying (35%), although a quarter (24%) still say they will be doing absolutely nothing to mark the occasion, least of all dancing in the streets. Those in the hospitable East of England are most likely to throw their own parties, whilst Hogmanay in Scotland will see only one in five (21%) turning out in the cold to raise their glasses.

Perhaps the consumerism of Christmas may be changing the habits of Brits, as seven in ten (73%) respondents are due to spend the night simply relaxing with friends and family in private celebrations. A startling one out of eleven people (9%) even plan to spend the witching hour alone.

David Kuo, Fool.co.uk’s Head of Personal Finance, says: “We may like to ring in the New Year with a good knees up but it seems that the heavy spending of Christmas makes us realise that we must start 2008 as we mean to go on.

“With the average adult spending £419 on Christmas presents, money may be thin on the ground by the time 31 December arrives. Therefore it’s commendable that we’re showing restraint on an evening that is essentially an annual blow-out.

“By saving that extortionate taxi fare, or removing the temptation of that late-night tipsy takeaway, we’re showing that we’ve learned from the credit crunch and that 2008 could see some people reining in their spending and relaxing the relentless retail rush.

“It’s all very well to sip champagne as you welcome in a year where opportunities abound and the proverbial new leaf lies freshly turned over. But it’s a good idea to remember that when the bubbles have burst and the credit-card bill arrives, 2008 could get off to a pretty flat start.”