Euro instability and DIRT hikes slow consumer saving

CONSUMERS want to save money, but are slow to do so due to their uncertainty over the stability of the euro and DIRT tax hikes imposed on savings in the December budget.

The Nationwide UK (Ireland) and ESRI Savings Index was static in December, having fallen 24 points in November. While the Overall Savings Index stayed the same at 91, the Savings Environment sub-index fell from 98 in November to 95 in December. The average value for this sub-index in 2011 was 115.

Nationwide UK (Ireland) managing director Brendan Synnott said: “People are showing a lack of trust in the Government, with what they view as a penal increase in the DIRT tax from 27% up to 30% — which is hard for people who are relying on the interest on their savings for survival in the current environment.”