Scots Not Benefiting From Positive Impact Of Economic Downturn

14/8/09

New research from Clydesdale Bank has revealed that 1 in every 16 people in the UK has benefited positively from the current economic downturn.  However, the figures for Scotland are significantly lower with only 1 in 50.

The drop in interest rates, reduction in mortgage payments and lower rate of VAT have seen many people across the UK reduce their monthly outgoings but people in Scotland don’t appear to be reaping the same benefits as those south of the border. 

In the north east of England 21% of those surveyed are claiming to have been positively, compared to just 2% in Scotland. 

Regional breakdown of those who have positively benefitted from the economic downturn:

North East    21%     
East Midlands 5%
South East 12%   
West Midlands 3%
London  9%   
North West 5%
Wales   8%    
South West 2%
Yorkshire 5%   
East Anglia  2%
Scotland  2%

Of those who have benefited in Scotland, the majority are taking a prudent approach with 80% putting more into their mortgage payments in order to reduce their mortgage whilst interest rates are low. 

A further 60% are saving any additional money with males taking the lead in this cautious approach with 67% saving compared to only 50% of females questioned.   Only 20% claimed to be spending the extra cash on a day-to-day basis. 

Steve Reid, Retail Director Clydesdale Bank, said: “The economic downturn has had a negative impact for many people but we have found that there are others who have positively benefited.

“The numbers appear to be lower in Scotland, however, those who are benefiting appear to be taking a more cautious approach with the majority either saving the additional money or putting it into their mortgage.”

Ian Flynn, who has been a Clydesdale Bank customer for over 20 years, comments on how the economic downturn has impacted his life.  Ian said: “We have been lucky in that neither of our jobs has been affected and we were surprised to realise that we have actually benefitted from the economic downturn.

“Our mortgage payments have reduced due to lower interest rates and we also benefited from a reduction in price and VAT in buying a new car.

“However the current economic situation has made me more conscious of what I am spending so I am trying to be sensible and save the extra money.”