Belfast Telegraph

Holidays on ice as Britons plan to cut back in wake of Brexit vote

More than one in three Britons are planning to cut back on big ticket purchases like holidays, TVs and home improvements amid fears over the impact of Brexit on the economy and living costs, a survey suggests.

Half (50%) of people surveyed also said they will put bigger chunks of their wages into savings as a result of the EU referendum, according to the survey conducted on Saturday, the day after the Brexit vote was announced.

Some 61% of people surveyed agreed or strongly agreed that they are concerned about the future of the UK economy and feel this will have a negative impact on their personal finances - while 24% disagreed or strongly disagreed with this statement.

The survey of around 2,000 people was carried out by economics research consultancy Retail Economics.

Businesses have raised strong concerns about the impact of the referendum vote on consumers' confidence.

Richard Lim, chief executive of Retail Economics said: "The results from our consumer attitudes survey show concerns over the future of the economy, personal finances and rising costs of living are likely to choke off consumer confidence and spending."

Some 37% of consumers said they are likely to cut back on spending on large purchases such as TVs, furniture, new bathrooms and holidays that they had been intending to make before the EU referendum result was announced.

The research found that discretionary spending is also likely to take a hit, amid worries about food bills increasing.

More than half (58%) of people surveyed think their spending on non-essential items will be reduced, while 61% are worried their food costs may rise.

The research found that electrical goods such as TVs and tablets is the area where people are most likely to cut their spending, followed by DIY and gardening, clothing and home goods such as cushions and curtains.

Food and health and beauty were areas where people were less likely to want to make spending cutbacks.