By IRNA,
London : The cost of living in Britain is going up by Pnds 1,800 a year, forcing families to cut back on groceries, eating out and holidays as the credit crisis starts to have a profound effect on household spending, according to new research.
A survey in the Daily Telegraph on Saturday showed what it called the first evidence of the way that the global financial crisis was effecting Britons to change their spending habits to cope with the economic squeeze.
The number of customers seeking cheaper prices at budget supermarkets, discount stores, low-price hotels and car rental firms, was found to have gone up by 25 percent in the past 12 months with booming sales.
Restaurants have reported falling trade, with food stores saying that customers are opting for ready meals to make up for not going out.
Compared with a year ago, the British Retail Consortium reported a 1.6 percent fall in sales this week compared with a year ago, as clothing, furniture and electronics stores suffered most.
The fallout has been caused by a credit squeeze amid a range of huge increased costs in fuel and energy bills, local taxes and mortgage repayments, which together cost Pnds 31,495 annually, Pnds 1,800 more than a year ago.
Food shopping alone was found to cost the average family 600 Pnds more, while the survey also showed that 20 per cent of families have delayed holidays, 16 per cent put off home improvements and 11 per cent failed to top up their savings.
According to the figures produced by Mintel market research company, 57 percent of consumers have trimmed their spending because they were unsure of their finances.