More than half of the British public are significantly reducing the number of Christmas presents they buy this year, as the ongoing cost-of-living squeeze forces a widespread scaling back of festive plans.
The 'Cost-of-Giving' Crisis Bites
A new representative poll conducted for the Liberal Democrats has laid bare the financial strain facing households. The survey, carried out by Savanta between 12 and 15 December, interviewed 2,138 adults and found that rising prices for essential goods have directly influenced the festive plans of a majority.
51% of respondents confirmed they will purchase fewer gifts for friends and family this Christmas. Furthermore, the research indicates a broader retreat from traditional celebrations, with 37% planning to host fewer or even no guests on Christmas Day itself.
In a stark illustration of budgetary pressures, 45% of people intend to stay at home rather than travel to visit loved ones to save on costs. The Liberal Democrats, who commissioned the research, have labelled the situation a "cost-of-giving crisis."
Broader Cutbacks in Festive Spending
The belt-tightening extends beyond gifts and gatherings. The poll revealed that nearly half of Britons (45%) plan to cut back on visits to pubs and restaurants over the festive season. In a shift in shopping habits, over half (55%) are turning to cheaper supermarkets to manage their budgets.
Commenting on the findings, Liberal Democrat Treasury spokesperson Daisy Cooper said: "It’s depressing to think that this time of Christmas cheer will be dampened for huge numbers of Brits. This Government is allowing a cost-of-giving crisis to grip our country and refusing to take action to fix it." She urged the Prime Minister to adopt her party's proposals to cut energy bills and VAT.
Political Claims on Economic Progress
The polling emerges against a backdrop of political debate over the state of the economy. The Labour Party has sought to highlight its record, claiming that workers are now on average £516 better off per year after accounting for inflation since the party won the general election.
This figure is based on a comparison of Office for National Statistics data for median weekly earnings from June 2024 under the Conservative government and October 2025. Labour states annual pay has risen from £35,965 to £38,404 over that period.
James Murray, Labour's Chief Secretary to the Treasury, said: "Putting more money in working people’s pockets is the priority for this Labour Government... We know there’s more to do. Next year our Government is going to be focused on delivering the fairer future we promised."
The report follows news that Downing Street chief of staff Morgan McSweeney has told political staff that 2026 will be a "year of proof" for the Labour government's agenda.
