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[Music] our new report the cutback economy created by retail economics and grant thornton shows that faced with rapid inflation rising interest rates higher taxes households finances are being tested from all angles affecting consumers ability to fulfill their wants and needs consumer confidence has plummeted to record lows the squeezed incomes political instability and genuine fears about an oncoming recession signal what we call the cutback economy our research shows that nine in ten uk consumers will reduce their spending over the next year to help cover the cost of essentials such as food energy and fuel and of those planning to cut back a quarter of them intend to do so across all areas of their spending seeing their budget squeezed many consumers will adopt recessionary behaviors they will be forced to either save less trade down or cut back spending and those on lower incomes and burdened with debt are inherently more vulnerable to economic and inflationary shocks our research