Britain braced for bleak 2013

Three-quarters of Britain's families believe their lives will get harder in the new year thanks to Chancellor-turned-Scrooge George Osborne, economists revealed yesterday

Britain might not get a traditional white Christmas tomorrow but its economy is set to be frozen well into the new year.

Experts warn that energy bills, food prices and rent will all soar, stretching the salaries of Britain's workers even further.

Pensioners, public-sector workers and young people are all bracing themselves to feel the worst effects of government-imposed austerity.

Markit's household finance index exposed further evidence that the Tories will not turn the economy around.

Markit senior economist Tim Moore said: "The vast majority of households anticipate that their financial wellbeing will either worsen or stagnate next year."

The Tories hope the private sector will replace jobs they continue to cut from the public sector.

But Mr Moore said the Tories were killing their own plan for growth by strangling consumer demand.

"With three-quarters of all households not expecting any improvement in their finances, the latest survey suggests that domestic consumer demand will remain under pressure in the near term," he said.

"Especially since inflation perceptions remain elevated and job insecurities are prevalent across the UK."

And the Con-Dem coalition's complete mishandling of the economy could even scupper a standard seasonal boost.

Job security is at its worst in three-months, with workers in construction, education, health and social services most likely to be worried about their future.

But the gloom is certainly not limited to public-sector workers.

Over 30 per cent of all households said their finances were worse going into December - blunting their spending power.

Britain's economic future could also be damaged by news that the number of 19-to-24-year-olds deep in debt has to the highest level since Markit's studies began.

Anything above 50 in the Markit index is seen as growth but Britain's current score stands at just 36.8.

That's up fractionally on this time last year but half a point down on last month.