Britons' Essential Spending Eats Up 80% of Incomes

Essential spending gobbles up the lion’s share of Britons’ monthly income, leaving many with barely any money for other things.

GAME CHANGERS
Essential spending takes up the bulk of Britons’ monthly incoming, leaving many with hardly any funds for anything else.

Forty-one percent of people have less than 6.60 pounds ($8.50) to spend daily after paying their bills, according to a poll from Nationwide Building Society. Spending on things like mortgages, groceries and fuel has risen 6 percent over the past year and now consumes about 80 percent of the average U.K. salary.

Forty-one percent of the British public have less than £6.60 spending money left per day after paying their bills, according to the Nationwide Building Society. The costs of mortgages, groceries and fuel have increased by six percent over the past year and now take up 80 percent of the average UK salary.

The report highlights the pressure on UK shoppers since the Brexit vote in 2016 led to devaluation of the pound, accelerating inflation. The Bank of England raised interest rates to the highest since 2009 on 2nd August to keep prices under control.

British consumer confidence also edged down in August, according to a separate report by YouGov and the Centre for Economics and Business Research. While showing that more people are confident than unconfident, the index is still far below the levels preceding the Brexit vote.

British consumer confidence also decreased in August, according to a separate report by YouGov and the Centre for Economics and Business Research. While it continues to show more people to be confident than unconfident, the index is far below pre-Brexit vote levels.

Optimism has been hit by the weakening housing market, and there’s no end in sight for the slowdown. Consumer expectations for house values over the next 12 months hit the lowest point since July 2017, according to the CEBR.

Optimism has suffered from the weakening of the housing market, and there appears to be no end in sight for the slowdown. Consumer expectations for house values over the next 12 months hit

“The housing market is set to remain subdued, at least in the immediate future,” said Nina Skero, head of macroeconomics at the CEBR. “This will be particularly problematic for the economy if it encourages consumers to tighten the purse strings and pull back on spending.”

Published: August 27, 2018