The UK's cost of living crisis is showing no signs of abating, with consumers cutting back on travel spending for the first time in five years. According to data from Barclays, overall consumer card spending increased by 0.9% year-on-year in March, down from February's 1%. However, this modest growth was not enough to offset the decline in travel spending, which fell victim to rising fuel costs and concerns over inflation.
The statistics come at a time when many households are struggling to make ends meet due to increasing energy bills, food prices, and housing costs. The government's support schemes, such as the Energy Price Guarantee and the Cost of Living Support Scheme, aim to alleviate some of this pressure, but it remains to be seen whether they will have a significant impact.
Experts warn that the ongoing tensions with Iran could exacerbate the economic situation, making it even more challenging for consumers to make ends meet. As a result, UK holidaymakers may need to rethink their plans and budget accordingly.