Brits budget for holidays

Brits are making their own budget cuts and ditching life's little luxuries in favour of making sure they can get away on holiday, according to the Clydesdale and Yorkshire Banks' "Recession Spending Impact" report.

The Banks' research looked at the spending patterns of 3,000 consumers; comparing the amounts spent at the height of the recession and now with the economy back in a period of growth.  The results showed they have cut back their spending overall but have increased savings and spending in certain areas.

The research suggests that consumer spending has declined by around 8 per cent compared to a year ago.  Brits have made average cutbacks totalling £580 this year on everyday items such as clothes, shoes, make-up and nights at the pub, in favour of saving, holidays and special nights out at concerts and events.

Having seen the "staycation" flourish as people holidayed at home to save cash, Brits are now spending more than £905 on family holidays each year - up from £872 in the middle of the recession, according to the report.

Many look to be getting back in the saving habit too, with more money being put away each month.  The average Brit is now saving £1,095.48 annually, proving they are keeping an eye on the future, up £74 on a year ago.

Steve Reid, retail director, Clydesdale and Yorkshire Banks, said:  "The survey clearly shows that people are changing their spending habits by cutting back on small luxuries so that they can afford the things that really make a difference in life.

"People are spending more wisely and putting more into savings so that they can enjoy worry-free quality time with friends and family and feel the positive impact of their spending."

Brits cutting back

The survey results indicate that day trips and weekends away are luxuries that have seen the biggest cuts.  Spending has fallen 21 per cent on these trips; Brits are now paying out £543 annually a cutback of almost £150 on last year.

Socialising has also seen a big fall in expenditure.  Consumers say they are spending 20 per cent less on relaxing with friends over a meal or a drink out; £163 less a year ago.  Plus, High Street spending, clothes and shoes, is down by 10 per cent, as shoppers made £60 worth of savings last year.