Summer celebrations ‘hit consumer finances’

The summer celebrations may have been fun for Britons, but many have been hit in the pocket as a result.

With the Queen's Diamond Jubilee celebrations sparking numerous street parties, the European Championships providing an excuse to stay in with a few beers and the Olympics seeing many millions of pounds on tickets and travel, the summer fun will have come at a cost.

A study by the MoneySupermarket website has found 58 per cent of consumers spent more than they planned to this summer, with 38 per cent noting this had impacted on their personal finances.

Credit card debt may be an issue for nearly a fifth of consumers, with 18 per cent admitting they used their plastic to make payments with the attitude that they would worry about the consequences later.

Only eight per cent made budget plans in advance of the summer to account for these extra costs, while just over 12 per cent said the summer has actually cost them less than normal this summer because they had spent so much time at home in front of the television.

Head of banking at the site Kevin Mountford said: "It has really been a fantastic summer full of celebrations so it's no surprise consumers have entered into the spirit and spent more than they planned.

"Whilst it's good to see some have already budgeted for the extra expense, it's really important to be savvy about how you plan to pay for it or you could be left feeling the pinch for many months to come."

The extra spending has been taking place at a time when the economy has still been in recession, although some economists believe the Olympics could give the economy a short-term boost that would push third quarter gross domestic product into positive territory.

One benefit of the Games appears to have been its positive impact on the jobless total, with the increase in employment in the three months to June being largely concentrated in London.

By James Francis