Brits on a cliff edge as the “Big Squeeze” approaches

Many British people are on a cliff edge as the Big Squeeze of 2017 approaches.

Finances are been stretched to breaking point as savings dip and debt amounts with consumer spending still robust in January despite rising inflation.

One in four Britons has no savings, new research has found, while another third has less than three months take-home pay set aside.

The survey looked at the financial habits of nearly 15,000 people in 15 countries in Europe, Australia and the US finding Britons are more likely to have debt and savings at the same time compared to the rest of Europe.

ING economist Ian Bright said: “People across Europe are feeling the strain of continued low interest rates – and losing motivation to save.”

The results come following Bank of England governor Mark Carney’s warning that living costs were likely to rise on the back of a weak pound and squeeze households’ real incomes.

At present, households appear to be entirely looking through Brexit-related uncertainties, he said, with the saving rate has fallen towards pre-crisis lows and consumer borrowing has accelerated notably.

Debt charities said the signs of a credit boom that is close to levels not seen since the 2008 financial crash should set alarm bells ringing in Theresa May’s government.

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