VAT rise forces people to stop spending

THE VAT rise is forcing nearly two thirds of people in Whitby and the Yorkshire and Humber region to change their spending habits according to a new survey.

A fifth of adults in Whitby questioned by learndirect say they have already made changes to their spending and more than 40% claim they will do the same in order to help cope with rising prices.

But around one in five admit they lack the skills needed to make the best choices with money while a further third are struggling to curb their spending.

One in three questioned in the survey last month plan to cut spending on groceries and clothes this year, while a quarter aim to cut down on energy costs and one in five will try to make savings on phone costs.

Jasmine Birtles, financial expert and founder of Money Magpie said: “January is traditionally a time when we feel the need to get a handle on our money. But with this year’s rise in VAT, more people in Whitby than ever are looking to save cash where they can.

“The problem is that many of us lack the confidence to make the right choices when it comes to spending and saving. We haven’t been taught how to manage our money and think it’s something only really clever people can do.

“Taking steps to improve maths, English and IT skills could help a lot of people in Yorkshire and Humberside make sense of money saving deals and find the best offers and advice online.”