Britons are likely to hold on to their purse strings tighter this year as a recent report claimed that much of the savings built up during the pandemic will remain in household bank accounts until the economic outlook is more upbeat.
Although companies have ramped up their Christmas advertising on social media, TV, newspapers and magazines to record levels to capitalise on the expected surge in spending, as per a recent study by Institute for Fiscal Studies, the much-anticipated Christmas spending spree is unlikely to happen in the UK despite consumers having around £150bn of savings on deposit to splash on toys, food and festive parties.
The report is based on a survey which found that when people were asked what they would do with an extra £500, they said on average that only £55 would be spent over the next three months.
Richer households were more likely than poorer households to report they would use the extra funds to add to their savings, the IFS said. Poorer households were more likely than richer households to report they would use them to reduce their debts.
Earlier this week, ITV said it was on track to enjoy the best year for advertising revenues in its 66-year history, as businesses pour money into marketing to drive a post-pandemic recovery.
The UK’s biggest free-to-air commercial broadcaster said total advertising revenue for the first nine months surged 30 per cent year on year to £1.3bn.
The period in the run-up to Christmas is expected to be even better, with record amounts forecast to be spent on advertising.
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