The Barclays ’10 Years of Spend’ report, which has tracked consumer and economic confidence since 2015, has highlighted that people find room in their budgets to spend on experiences over products.
A quarter (24%) of those surveyed said they prioritise fun and making memories, with the overall hospitality and leisure sector remaining in positive growth since April 2021 – when socialising resumed after lockdown measures lifted, and outdoor venues and indoor leisure re-opened.
Entertainment and travel have both outperformed retail subcategories in recent years, with the exception of beauty, which has continued to go from strength-to-strength. All three are among the strongest performing non-essential categories post-pandemic.
With household budgets under pressure, consumers have become savvier in combating rising costs while maintaining the quality of life they value. Discretionary spend has grown by 9.2% annually on average, between 2021-2024, outpacing essential spend’s 5.0% growth.
UK adults’ confidence in their ability to live within their means has held strong, reaching 74% in May 2025, on par with 2019’s figure of 73%, when Barclays started tracking this measure, potentially due to more prudent budgeting.
However, 66% of UK consumers now pay more attention to their budget than they did a decade ago, with 45% reporting that they don’t feel better off than they did 10 years ago. The majority (82%) are concerned about shrinkflation, amid increasing awareness of pricing
“The last decade has brought unprecedented levels of disruption. Amid all the highs and lows – from rising bills, job insecurity and a fluctuating global and national economy. It is encouraging to see that through purposeful spending, consumers continue to prioritise the things that bring them joy, unlocking the potential for UK economic growth,” said Karen Johnson, head of retail at Barclays.
Stay informed
Our editor carefully curates two newsletters a week filled with up-to-date news, analysis and research, click here to subscribe to the FREE newsletter sent straight to your inbox and why not follow us on LinkedIn to receive the latest updates on our research and analysis.
