With rising inflation and the highest tax burden in 50 years, many households in the UK are struggling with the cost of living.1 Unfortunately, the joys of the festive season also bring additional pressures on household finances. Research from Deloitte shows that the average UK consumer intends to spend £567 this Christmas, which is an increase of 1.3 per cent in actual spending from last year, and 39 per cent more than the European average.2 Consumers in the UK are the most active online in Europe – spending £250 – compared to the European average of £134.
- This Christmas, a UK household will pay an average of £212 in tax on their festive spending, enough to buy 18 luxury Lidl Christmas puddings.3
- The total Christmas tax bill will come to £5.9 billion, the equivalent of building two aircraft carriers.
- The average household will spend £1,344 on Christmas gifts, travel, socialising and alcohol.
- Simpson, D, The tax burden on households, TaxPayers’ Alliance, 2019, p. 2.
- Deloitte, Deloitte Christmas Survey 2019, https://www2.deloitte.com/uk/en/pages/consumer-business/articles/deloitte-christmas-survey-2019.html, (accessed 27 November 2019).
- Lidl, Deluxe Luxury 24 Month Matured Christmas Pudding, 2019, https://www.lidl.co.uk/en/p/desserts/deluxe-luxury-24-month-matured-christmas-pudding-with-courvoisier-vs-cognac/p26954, (accessed 29 November 2019).