BRITAIN’S SPENDING HABITS CHANGE

Press, Volume CIV, Issue 30855, 14 September 1965, Page 12

BRITAIN’S SPENDING HABITS CHANGE

(Special Correspondent N.Z.P.AJ,

LONDON, September 12.

The changing habits of Britons have been revealed in a report just out which shows that incomes have nearly doubled in the last 10 years.

People who drink and drive are cutting back their expenditure on alcohol and putting a bit extra in the tank. Motor-cyclists are also spending more on their machines than 10 years ago. Housewives are saving a little on food and clothing but are paying out more for housing, fuel and lighting, according to the annual “Blue Book” published by the Statistical Office. Where the £ went in 1964:

Food, 5s 2d (6s Id in 1954); alcohol, Is 3d (Is 4d); tobacco (Is 3d (Is sd); houses and heating, 3s ,2s 6d); clothing, Is lOd (2s). Cars come under durable goods, Is 9d (Is 4d); running costs, 9d (4d>; travel, 8d (9d); entertainment and other services, 2s 6d (2s 4d). It was personal spending on items like these that got through £21,334 million last year.

But the money coming in—by way of wages and salaries —was £27,400 million. Savings now take 8 per cent of what is left over after income tax—in 1954 less than 4 per cent. Ten million people (counting husband and wife as one) earned less than £5OO a year before tax, but many of these were juveniles or retired people. The same number were in the £5OO-£lOOO bracket, 5.8 million between £lOOO-£2OOO, and just under 800,000 with £2OOO or more.

. Company profits were 14 per cent higher in 1964 (£4546 million) than in 1963 (£40.000 million). Dividends and interest rose at the same rate, though. Exports and property income from abroad (£7594 million) rose by 5 per cent, but this increase was more than offset by the 12 per cent increase in imports and income paid abroad (£7820 million).