PROOF that Brexit has damaged the incomes of people in Scotland was published yesterday when it was also revealed that Scots are increasingly pessimistic over personal finances as Brexit gets ever closer.
New research by PwC shows that three-quarters of Scots believe Brexit will increase the cost of living, while their studies also found that the number of Scots who believe they will be better off over the coming year has fallen.
PwC’s latest Consumer Sentiment survey shows that more than a third of Scots have seen their spending habits impacted by Brexit.
This is leading to reduced spend on the likes of holidays, home improvements and fashion, while consumers also expect to spend more on groceries compared with last year.
The survey found that almost one third of Scots, some 32%, expect to be worse off in 12 months’ time, against 20% saying they would be better off.
PWC stated: “This balance of -13 percentage points, when rounding is factored in, has widened by four points from -9 percentage points in December.”
The survey also points to yet another difference between Scottish and English views of Brexit.
The average balance across 12 nations and regions of the UK is +1per cent up from -3% in December, meaning overall, more people believe they will be better off this year. Wales and London were the most optimistic areas while only Northern Ireland was behind Scotland, on -18%.
The survey found that a quarter, 24%, of Scots said the way they spend and save money has changed in the last 12 months directly because of Brexit, while a further 11% believe their spending habits will change over the next 12 months.
The remaining 65% said their spending habits had not changed, and would not change.
The Consumer Sentiment survey also examines spending intentions across 13 key consumer categories. The survey found it is more expensive purchases which will see the greatest impact from spending reductions.
More than a quarter (27%) expect to spend less on holidays, the same number who highlighted a reduction in fashion and technology purchases.
Lindsay Gardiner, PwC Scotland chair, commented: “Three years after the EU referendum, Brexit continues to be the defining influence on consumer sentiment and the ongoing economic uncertainty that Brexit has created is the most likely cause of the reduction in the number of Scots who expect to be better off in 2019.
“The results show that concern about Brexit seems to be more keenly felt in Scotland with 74% of respondents expecting prices in general to rise over the next 12 months due to the Brexit effect – against a national average of 62%.”
“With fashion retailers and travel agents among those bracing themselves for reduced spending, we can expect an even more challenging environment on the high street over the next 12 months.”
The survey was conducted among 2000 people across the UK.
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