Shoppers 'are cutting back on luxuries', poll shows

27/08/2008

Many Britons are "going back to basics" as their personal finances feel the strain of the economic downturn, the Co-op has suggested.

According to the group, sales of "luxury" items such as flowers, CDs and bottled water have dropped as consumers look to minimise their spending.

A Co-op poll also revealed that the average shopper is spending £15 less a week - or around £750 less a year - due to their budgetary concerns.

Kevin Still, director of EuroDebt, commented: "If people are struggling financially then effective budgeting based around when income comes and major expenditure goes out, like the mortgage or the council tax, is essential.

"However, if the allowances set aside for housekeeping start to fall below a certain level then it may be time to take professional advice, especially if you have dependents to look after; for example, a family of four should be looking to have between £480 and £500 a month set aside for essential housekeeping."

Emma Thomas at the Co-op added: "People are being more conservative in their spending and are finding that cutting back on luxury items can help make a difference.

"Developing a household budget is essential to keep spending in check and to identify ways costs can be trimmed."

Tags; Income Worries and Debt, Budgeting Advice,

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