UK consumers are planning to rein in their festive spending even if interest rates fall rapidly, new research shows

Almost half of British internet shoppers plan to spend less this Christmas, and are among the most likely consumers in Europe to rein in the purse-strings, a poll shows. 

Some 48 per cent of UK online shoppers said they would spend “less or much less” this year compared to last, according to the survey of 3,000 people for Twenga, the shopping search engine. That made UK consumers the second most likely to cut spending this year behind Italian shoppers, 49 per cent of whom said they would cut their Christmas shopping budget. 

That compares to 28 per cent of people in the Netherlands, 38 per cent in Germany, 44 per cent in Spain and 46 per cent in France. 

Around 21 per cent of British internet shoppers plan to cut what they spend by more than a quarter this festive season. Only 33 per cent intend to spend the same amount, while 14 per cent plan to increase their budget. 

The Bank of England is expected to reduce the base rate on Thursday, following a half percentage point cut to 4.5 per cent last month. Some analysts expect rates to fall by as much as one percentage point. However, banks are thought to be unlikey to pass on the cut and experts think it will have little impact on consumer confidence.

Jennifer Hill 

From Times Online

November 4, 2008