Spending review forces budget cuts, but 2010 will still beat 2009.
Research by the money.co.uk website indicates that consumers have revised their Christmas spending plans down following the Comprehensive Spending Review.
The money.co.uk Christmas Shopping Index quizzed Brits on their Christmas spending before and after the review, and found that 40 percent of households will spend less than planned as a direct result of the government’s announcement. On average, those spending less will cut their budgets by 32 percent.
Before the spending review, the average UK household was planning to spend £717 on Christmas – 43 percent higher than last year.
The country was set to spend more than £17.7bn on the festive season in total. The research shows that those plans have now been revised down.
Households planning to cut back will, on average, spend £485 – saving £232 per household. A small number (3 percent) of households also said they would cancel Christmas altogether, while 53 percent said they will not cut spending.
Overall, the average UK household will spend £624 on Christmas in 2010. This is a fall of 13 percent (£93) on the figure reported before the spending review yet, more cheerily for retailers, it still represents a £3.8bn rise on spending in Christmas 2009.