UK borrowings 'top £11bn'
Published On 17 December 2007
The UK has a whole increased its borrowings in the third quarter of 2007 to £11.7 billion, according to a new study.Research carried out for Unbiased's Savings Brake survey found that for each pound put aside in savings over the three months, 35p was borrowed.
According to the report, the credit crunch and reduced consumer confidence meant that more people tapped into their savings accounts to pay for goods and services, reducing overall balances.
"While the high level of borrowing and a drop in savings for this quarter may come as no surprise, it is a worrying development," said David Elms from the IFA organisation.
"And with the cost of Christmas about to hit the nation's pockets over the next couple of months it is unlikely that we will see a significant improvement in the Savings Brake ratio."
Recent research from Apacs revealed that spending during December is expected to reach £53 million this year - up 4.2 per cent on the figure for the same month last year.
