Only one in ten (9%) said their spending will increase, while half expect their spending level to remain the same this year as it was in 2021.

Spending less on eating out was the most common answer (55%) amongst those consumers looking to reduce their 2022 household spending and half aim to spend less on clothing, rising to 59% amongst women polled. This was followed by 49% who said they would cut down on takeaway orders.

Linda Ellett, head of consumer markets, leisure and retail at KPMG UK, said: “The cost-of-living squeeze is underway for many households and it’s not a surprise to see a third planning on reducing spending, and less than one in ten planning to increase their spending.

“Faced with inflationary pressures, some businesses are mulling upping their prices, or have done so. But they will be mindful that they are operating in a marketplace where consumers are themselves having to tighten the purse strings.

“The competition for share of wallet in 2022 is heating up. It’s vital that businesses double-down on their productivity, on the value and efficiency of their supply chain, and assess whether new products or offers can give them an edge in this landscape.”

A quarter (26%) of those surveyed hadn’t managed to save during the pandemic. Of the 74% that had, the rising price of goods and services was named as the biggest (23%) deterrent to spending savings, followed by higher taxes and household bills (17%), then uncertainty linked to the pandemic (13%).