More than half of Scots households are concerned about how leaving the EU will affect them financially, new research shows.
The latest Disposable Income Index (DII) published by savings plans provider Scottish Friendly reveals that 55.5 per cent of Scottish households are worried about how leaving the EU will affect their financial wellbeing.
The quarterly report, which has been compiled in conjunction with think-tank the Social Market Foundation, reveals that disposable income remained relatively flat with a small 2.4 per cent improvement overall across the UK over the last quarter, bolstered by low inflation and the continued positive impact of the National Living Wage.
However, with growth expected to slow in the wake of the EU referendum result and the dramatic fall in the value of sterling, many still cite concerns about their financial well-being, despite unemployment levels remaining relatively low.
Overall, Scottish households have a monthly disposable income of £1,025, compared to the UK average of £1,024.
It comes as Brexit is projected to cost the Scottish economy up to £11.2 billion each year, according to the Scottish Government.
Leaving the European Union will also hit tax revenues by up to £3.7 billion annually, its analysis found, and First Minister Nicola Sturgeon said those figures are further evidence of the need to protect Scotland's relationship with the EU.
Calum Bennie, savings expert at Scottish Friendly, said: "Clearly the economic consequences of the Brexit vote are at the forefront of people’s minds when it comes to planning their finances. Concerns persist despite an increase in monthly disposable income as the improvement has not resulted in increased confidence.
"There is still a sense of financial fragility in many parts of the UK and amongst Scottish people in particular, who don’t feel as secure in their jobs as the rest of the nation.”
Bennie continues:
“Despite the recent blow to savers of the cut in base rates it’s encouraging to see that over half of Scottish households regularly save or invest each month.
"With economic uncertainty ahead, including inflationary pressures, building a robust buffer is going to be important for many households and more must be done to encourage people to get into the habit of putting money away for their future.”
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