‘Brighter times ahead’ for meal-deal consumers

However, the report warns that spending will not return to pre-recession levels for another two years.

Consumer spending is set to grow by 1.2 per cent this year before accelerating to 1.9 per cent in 2014, according to the report.

The EY ITEM Club forecasts further spending growth of 2.2 per cent in 2015, at which point the level of spending will have returned to its pre-financial crisis peak.

Peter Spencer, chief economic adviser to the Ernst & Young ITEM Club, said: “The high street revival is gathering momentum.

“A happy coincidence of converging factors, supported by Government policies around income tax and the housing market, will lead to the revival of consumer spending over the next three years.

“The Treasury’s plan to move from an economy dependent on consumption to one led by exports and business investment has been put on hold. The UK has essentially returned to relying on the consumer to drive economic growth.”

However, Mr Spencer warned that despite showing strong signs of life, consumers have been bruised by the experience of several tough years and will remain nervous and cautious in their spending habits.

He added: “Any hint of adverse economic developments is likely to provoke an immediate blip in spending and a retreat from the local restaurant back to 
meal deals and nights on the sofa.”

Following a dismal five years the EY ITEM Club expects consumers to loosen their belts and start spending again on televisions, tablets, smart phones and package holidays.