Over half of Yorkshire consumers plan to cut down on non-essential spending in 2023

The worry of these essential costs rising further was the top deterrent for 16 per cent of consumers in the region.

Sara Smith, head of consumer & retail at KPMG in Yorkshire, said: “Current essential costs and fears of how high they’ll rise are all factors in why almost two-thirds of consumers that we surveyed said they have to reduce their non-essential spending in 2023.

“To do so, consumers are increasingly changing how they shop to save money – including switching to cheaper retailers, buying more value or promotional produce, and swapping eating out for meals in.”

The cost of energy bills rising further after April was the largest barrier to spending for 14 per cent of Yorkshire residents, while consumers also cited saving money for the future and variable mortgage rates rising as other top deterrents to spending.

Only 9 per cent of consumers in Yorkshire said they will be able to increase their non-essential spending levels in 2023, up five points on the national average. Meanwhile, a fifth (20 per cent) of consumers said their spend would stay at the same level as it was in 2022, compared to 25 per cent UK wide.

Consumers in Yorkshire looking to save money most commonly plan to reduce spend on eating out (51 per cent), followed by clothing (43 per cent) and takeaways (41 per cent).

Nearly two in five expected to cut back on travel and holidays, while more than a third expected to reduce spending on experiences like going to the cinema.

One in ten consumers in Yorkshire said they have no savings, compared to 13 per cent at national level. Amongst those that do have savings, the average savings balance is £9,039, up from £7,371 UK wide.

Of all consumers in Yorkshire with savings, 44 per cent say they are using them to help meet their essential costs.

KPMG surveyed 3,000 UK consumers, including 235 Yorkshire residents, between December 1 and December 7 2022.