Household spending is down £50bn since last year. It’s hardly surprising there’s so much uncertainty in the economy given the relentless negativity of the Chancellor herself, says Paul Ormerod

Households in Britain are still saving large chunks of their incomes. The Office for National Statistics (ONS) confirmed this week that the percentage of income saved in 2024 was as high as it was in the financial crisis in the late 2000s.

At 10.4 per cent, this was a sharp rise on the 2023 figure of 7.5 per cent, itself slightly up on the 2022 rate of 6.0 per cent.

Translated into cash amounts, these numbers represent big chunks of money which are being taken out of action. Consumer spending is just over £1,700bn a year in the UK. So compared to 2023, households were spending £50bn less.

Most of the increase in savings in 2024 took place after the general election. The latest ONS data shows that in the first quarter of this year there was no let up. Households saved........

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