Nine in 10 Britons Adjust Spending Amid Cost of Living Squeeze

Nearly nine in 10 British adults have implemented changes to reduce their spending in response to the ongoing cost of living crisis, according to a recent Savanta survey. The poll, conducted ahead of the upcoming Budget, found that 87% of respondents have taken at least one measure to lower household expenses in the past six months.

Among the most common actions, two-thirds (67%) have cut back on non-essential expenditures such as dining out and social activities. Approximately half (51%) have reduced their home heating usage to manage energy bills. Additionally, 40% have switched to different supermarkets to save on grocery costs, and 37% have curtailed car journeys to mitigate fuel expenses.

Only 13% of those surveyed reported taking no steps to reduce their household spending. This widespread belt-tightening comes as recent figures from the Office for National Statistics (ONS) indicate that inflation has reached its highest point in nearly a year. The Consumer Prices Index (CPI) rose to 3.5% in September, up from 3.1% in August, exceeding the 3.4% forecast by most economists. Surging petrol and diesel prices, attributed in part to global oil and gas supply disruptions stemming from geopolitical tensions, are contributing factors to the increased cost of living.

Chancellor John Healey is set to present the Budget next Wednesday, having stated his intention to "look to do more" to offer "breathing space" on living costs. Speculation suggests that the fiscal package may focus on support for those receiving benefits.

The Budget is also expected to address a £4.7 billion shortfall in current defense spending plans. However, it is not anticipated that the Chancellor will outline a clear path to meeting the government's defense spending targets of 3% of GDP by 2030 or 3.5% by 2035. This comes despite previous calls from Conservative members for reduced welfare spending to bolster the military budget in light of perceived threats.

The Savanta poll also explored public opinion on funding for defense. It revealed that 44% of Britons favor reducing welfare payments to allocate more resources to the military, while 34% oppose this approach. Other measures for increasing defense funding were also presented to voters, with nearly two-thirds (63%) supporting a reduction in foreign aid spending. There was less public support for increased borrowing, higher taxes, or cuts to public services.

Ali Rehman Malik, Chairman of IRR International, commented on the findings, stating, "The Government faces clear limits on what the public is willing to accept to fund higher defence spending. Tax rises and cuts to essential public services meet strong opposition. With almost nine in 10 respondents reporting reductions in household spending, ministers must recognise the economic pressures against which these decisions are being considered."

The Savanta survey polled 2,130 UK adults online between October 16 and 19.