Figures Suggest First Shoots Of A Savings Revival

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- For every pound saved, we are borrowing 61 pence -

Figures compiled for IFA Promotion*, the organisation promoting the benefits of independent financial advice, suggest the nation is beginning to take control of its finances. IFA Promotion’s ‘savings brake’ (the ratio of how much we are borrowing - not including mortgage debt - compared with how much we are saving) shows that for every pound saved, we are borrowing 61 pence, and that new savings crept above £30 billion, while new borrowing hit a plateau.   

David Elms, Chief Executive of IFA Promotion, commented, “We’ve seen a marked upturn in new savings this year compared to the same period last year and the year before.  Interest rate rises early in the year clearly had an impact on our saving behaviour, so it will be interesting to see the effect of recent rises.”

IFA Promotion’s figures suggest that the current quarter (July-September) tends to be the worst for balancing our saving and borrowing; last year we borrowed 115p for every pound saved, effectively putting the nation’s savings into reverse.

Elms concluded, “It’s too early to say whether these first shoots of a savings revival will strengthen over the months ahead, or whether the expectation of a Base Rate peak will tempt people back towards borrowing.  We are urging people to visit a local independent financial adviser who can consider their overall financial position and discuss how they can budget better and boost their savings”.

To help consumers take control of their spending and borrowing, and get saving, IFA Promotion has produced a free dedicated guide - Join the Savings Revolution - which looks at how you can budget to save more, and options of where to put any extra money.  You can also obtain details of local independent financial advisers to talk though the most suitable savings options for you. Call 0800 085 3250 or visit www.unbiased.co.uk/getsaving.

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*According to independent analysis of the most recent official figures conducted by independent agency, RAKM, on behalf of IFA Promotion.  Data sources are ONS (average earnings), Bank of England (unsecured debt levels), industry data and consumer research (number of loans and credit cards held).  With detailed queries on this analysis call Paul Hersey on 01737 216 940.

For further information, please contact:

David Elms, Chief Executive           Chloe Merriman / Liz Willder

IFA Promotion                                   Lansons Communications

020 7833 3131                                 020 7294 3681 / 3677

david@ifap.org.uk                            chloem@lansons.com / lizw@lansons.com

For expert comment or case studies from over 200 media-friendly IFAs, journalists should call IFA Promotion’s Media Services hotline on 020 7294 3682 or search online in ‘Media Services’ at www.unbiased.co.uk

1.  Independent Financial Adviser Promotion

IFA Promotion was established in 1989 to promote the value and accessibility of independent financial advice to the public.  It represents over 10,000 firms of independent financial advisers across the UK and is sponsored by 27 leading financial institutions. In 2003, over 330,000 consumers and businesses used IFA Promotion to find local independent financial advice.

IFA Promotion believes Independent financial advice should be:

·        Affordable.  The option to take independent financial advice should be available, by right, to all - not just the wealthiest in society.

·        Convenient.  IFAs should be available in the location of the consumer’s choice, wherever they live in the UK.

·        Transparent.  It must be clearly transparent to consumers who is able to offer independent financial advice and who is not.

2.      Independent Financial Adviser Promotion’s sponsors

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