After lockdown, will the savers spend like it’s a new Roaring Twenties?

Are we heading for another Roaring Twenties? After a year in lockdown, it appears the UK has saved quite a lot of money and now the Evening Standard’s Jonathan Prynn says we’re being encouraged to spend it. 

Official figures reveal an unprecedented scale of cash piles have been put aside by households while “non-essential” shops, restaurants and bars remained closed for months and foreign holidays had to be put on hold. The latest data from the Office for National Statistics shows that the savings ratio — the proportion of disposable income put aside for a rainy day — rose from 14.3 per cent to 16.1 per cent in the last three months of 2020.

For the year as a whole, the savings ratio — which peaked in the first lockdown last spring — rose from 6.8 per cent in 2019 to a record 16.3 per cent. But will this new nation of savers want to give up its cash for the sake of the country’s economy?

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