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Figures released by the Bank of England help explain why there has been a downturn in high street spending in the UK. The bank says that the amount of money taken out on homeowner loans during January, February and March of this year is down 65 percent on the same period last year.

During these months in 2008 the total value of homeowner loans taken out by consumers was worth only £5 billion, down from £14 billion in 2007.

This £5 billion figure is the lowest since 2001 and sheds light on the reasons why fewer people this year are reportedly less ready to carry out home improvements, purchase new cars and go on shopping splurges.

Howard Archer, who is high-ranking economist with Global Insight, a firm often considered to be the world’s leading economic trend forecaster commented, "This reinforces the belief that we are in for an extended period of consumer retrenchment."