British households are proactively tightening their belts, implementing a series of simple lifestyle changes to build a financial buffer against the ongoing cost-of-living crisis and looming budget anxieties.
A comprehensive poll of 2,000 adults, commissioned by electric car manufacturer Leapmotor, reveals that a significant 83% of Brits have reduced their spending over the past year. This collective frugality has resulted in substantial average savings of £117.60 per month, culminating in an impressive annual total of £1,411.20 per person.
The Great British Cutback: Where Are the Savings Coming From?
Faced with rising costs, families are prioritising essentials by sacrificing luxuries and rethinking daily habits. The most common casualties have been holidays and social outings, with many opting for more affordable alternatives or forgoing them altogether.
Beyond social sacrifices, practical switches are at the heart of this saving spree. A notable shift has been the move to more budget-friendly supermarkets for the weekly grocery shop. Other popular measures include cancelling non-essential TV subscriptions and significantly cutting back on purchasing new clothes.
Furthermore, Brits are not just cutting back; they are also finding creative ways to boost their income. The research shows that 35% have sold old clothes, 28% have invested money, and a further 21% have started a side hustle to make ends meet.
Budget Fears and Future Financial Worries
The primary driver for these cutbacks is clear: 64% of respondents directly attribute their actions to the rising cost of living. However, future financial fears are also playing a major role.
Concern is widespread, with 38% believing they will be in a worse financial position after the government's upcoming budget. A significant 20% are specifically worried about potential tax increases, prompting them to act now. This apprehension means the majority are likely to make even further cutbacks in the coming months.
The financial strain is also casting a shadow over seasonal celebrations, as over a third of those surveyed expressed worry that they may not be able to afford Christmas this year.
Spending Shifts and the Electric Vehicle Dilemma
The motivation for saving is largely pragmatic. Nearly half (45%) plan to use their accumulated savings to manage rising costs, while 29% will dedicate the extra cash to essential spending.
The research, conducted for Leapmotor's new B10 SUV launch, also highlighted consumer hesitation around electric vehicles (EVs). Reports of a potential pay-per-mile EV tax have deterred 28% of Britons from purchasing an electric car. Despite this, 45% said they would consider switching to electric if the upfront cost and running expenses were lower than their current petrol vehicle.
Damien Dally, UK managing director for Leapmotor, commented on the findings: "Money is tight for many and the speculation surrounding the Budget is only making people worry more. Brits are cutting back on 'luxuries' and building up a kitty for life's essentials." He added, "But for savvy shoppers there's smart, more affordable choices people can make without having to compromise on quality."
TOP 20 WAYS BRITS HAVE MADE CUTBACKS THIS YEAR:
- Spent less on eating out
- Cut back on takeaway meals
- Reduced online shopping
- Delayed big purchases
- Used cashback or discount apps
- Changed to more affordable supermarkets for food shopping
- Went on less holidays
- Less nights out with friends
- Sold unused items online
- Less days out with friends
- Made packed lunches instead of buying out
- Less days out with family
- Less nights out with partner
- Shop in charity shops more often
- Less nights out with family
- Cancelled TV subscriptions
- Bought more second hand clothes than new e.g. using platforms like Vinted
- Went on smaller / more affordable / shorter holidays
- Shopped during sales only
- Switched to cheaper mobile phone plan
