Cost-of-living crisis eating into Christmas finances

The cost-of-living crisis is eating into Brits’ Christmas finances, with many households cutting back on spending this year, a survey from tax, audit and consulting firm RSM UK has found.

The poll, taken a week after Jeremy Hunt’s autumn statement at 17th November, found that many families were cutting back as they struggled with higher energy bills.

Here’s the details:

• Average spend for Christmas down from £554 last year to £463 this year – 16% drop
• 50% plan to cut back spending on socialising this Christmas
• Toys, presents and stocking fillers take a hit as consumers plan to cut their spend
• 37% have no money left to spend after paying for food, energy and household bills at the end of the month
• Retail and leisure/hospitality sectors face a ‘grim’ start to 2023: job losses and store closures likely to rise

Jacqui Baker, head of retail at RSM UK, said Christmas looks likely to be a more subdued affair this year, which could leave retailers struggling to shift stock: “Consumers’ finances are taking a hit and they have little choice but to tighten their belts.

“Our survey showed that nearly every category across retail would be impacted by dwindling discretionary spend this Christmas which is bad news following mixed results during Black Friday.”