Britons 'Making Cutbacks Due To Rising Inflation'

Rising inflation will lead many Britons to cut back on spending and might lead many into debt, new research from Alliance & Leicester suggests.

According to the study, 76 per cent are currently looking to tighten their belts as a result of the general credit crunch-induced economic downturn. What's more, 79 per cent of people planning to cut back say that the "rising cost" of food, fuel and consumer goods is to blame.

Alliance & Leicester also said today that 73 per cent of Britons, or around 35 million people, have already made some form of financial cutback recently. Just under four in ten said that they were trimming costs on day-to-day items and bills, while 36 per cent are spending less on socialising.

More worryingly, 28 per cent admitted that they had already started using their savings in order to fund their costs, and seven per cent are scaling back on their pensions and other retirement saving.

Current account manager at Alliance & Leicester Emma Walkley said: "It seems many of us are feeling the pinch and looking for ways to cut back. The good news is that people are taking action now and looking at ways of making their money go further rather than burying their heads in the sand.

"As a nation we are fairly financially minded which means that when budgets are stretched we can plan pragmatically how to cope."