New research has laid bare the stark impact of the ongoing cost of living squeeze on Britain's festive season, with more than half of the population forced to scale back their Christmas gift buying.
The "Cost-of-Giving" Crisis Hits Home
A Savanta poll, commissioned by the Liberal Democrats, found that 51 per cent of the British public are cutting back on the number of presents they will purchase this year. The primary driver cited is the continued pressure from rising prices for essential household goods.
The financial strain extends beyond gifts, significantly altering traditional Christmas Day plans. The survey, conducted in December 2025, indicates that 37 per cent of people plan to host fewer or no guests for the main celebrations. Furthermore, a significant 45 per cent are choosing to stay at home entirely over the holiday period as a direct measure to save money.
Political Pressure and Government Response
The Liberal Democrats have branded the findings evidence of a "cost-of-giving crisis." The party has urged Prime Minister Sir Keir Starmer to implement immediate support, including proposals to cut energy bills and reduce VAT for high street hospitality businesses.
In response, the Labour government has pointed to economic progress since taking office. Citing Office for National Statistics data, they state that average annual earnings have risen by £516 since the last general election. James Murray, the Chief Secretary to the Treasury, emphasised that putting more money in working people's pockets remains a top priority for the administration.
A Subdued Festive Season for Millions
The poll results paint a picture of a markedly subdued Christmas for millions across the UK. The combination of reduced gift-giving, smaller gatherings, and less travel suggests households are making difficult choices to manage their budgets.
This collective pullback in consumer spending during what is typically a peak retail period is likely to have wider implications for the high street and the national economy, adding another layer of complexity to the government's ongoing economic challenges.
