Spending cutbacks leave a £136 billion hole in the economy, says Which?

UK households have cut back on their annual spending by an average of more than £3,000 year since 2007, according to a new analysis from Which?.  

Some £1,750 every year was saved on non-essentials, while the rest has been shaved from food, housing and energy.  Which? calculates that the cutback on non-essentials has effectively removed  £136billion from the economy.

The cuts in non-essential spending relates straight back to the high street.  For example, Which? says that according toofficial data, since 2007 we have cut our spending on eating out by £13bn a year. This coincided with a 10% reduction in business reported by the restaurant and catering industry, and with 90,000 fewer people employed.

The research also suggests that people are living closer to the financial cliff edge.  More than two million households have missed a housing or bill payment since the beginning of the year.

For more details, go to:  http://www.which.co.uk/news/2013/03/budget-2013-households-cut-spending-by-12000-313746/