The contents of the nation's
savings accounts dropped dramatically in the latter part of 2009, new figures have shown. It came as people saved less and fell into their old borrowing habits, prompting analysts to identify the phenomenon as a barrier to the UK's revival from recession.
According to data from advice website Unbiased.co.uk, savings levels in Britain fell by £6 billion to £13 billion between July and September last year, in contrast to the £19 billion people had saved between April and June. Debt levels, however, did not drop at the same rate, dipping by only £1 billion to £4 billion in the third quarter.
The figures are at odds with those previously released by the British Bankers' Association, which suggested more Brits were paying off debts and prioritising the filling of their
savings accounts.
Karen Barrett, chief executive of Unbiased.co.uk, commented that consumers began "slipping back into old habits" by borrowing a third of what they save after focusing on paying off
personal debts in the first half of 2008. She cited figures showing that, for every pound saved in the third quarter of 2009, consumers were borrowing 31p - an all-time high for 2009.
