A third of Scots are not planning a holiday this year and those who are plan to spend around £100 less than the rest of the UK when they arrive.
It is because spending confidence has fallen, with many people uncertain about the future. Spending on essentials like housing, food and fuel has fallen by 0.8% compared to this time last year. 18 to 35 year olds are most likely to cut back on spending or save more throughout the year so they can afford a holiday. They are also the most likely to be proactive in finding ways to fund their summer holidays. They are the most likely to shop around online to get the best deals, with over a third (36%) doing so, compared to 31% overall.
People’s feelings towards both their current and future financial situations levelled off during April, with uncertainty in the run up to the General Election potentially restraining confidence towards personal finances, household finances, and the country's finances.
Patrick Foley, Chief Economist at Lloyds Bank, said: “Households retain a positive view of their financial situation, as a pickup in wage growth and muted inflationary pressures combine to strengthen real incomes. A more cautious assessment of future prospects continues to prevail, however. But against a backdrop of improving labour market conditions, and the lifting of some near term uncertainty following the election, a solid pace of growth seems likely to unfold this year.”
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