The research, which was carried out by Opinium and which surveyed 2,000 UK adults, found 64% would spend less this Christmas compared with last Christmas.

The 18 to 24 age group was most likely to make Christmas cutbacks at 82%, found the research, while women ( 68%) were more likely to reduce spending than men ( 60%).

The hospitality sector looked most likely to be affected by cuts, with 24% of consumers expecting to reduce their spend on meals out and 19% cutting back on bars and clubs.

Other areas expecting to see reductions in spending include clothing ( 23%), presents for extended family ( 21%) and premium groceries and drinks ( 20%).

Almost half ( 48%) said they would use savings to fund this Christmas, rising to 58% of 18 to 24-year-olds.

A further 13% of all adults intend on using credit to pay for Christmas shopping, rising to 17% of 35 to 54-year-olds, while 10% will be using ‘buy now, pay later’ schemes, rising to 19% for 25 to 34-year-olds.

More than half of UK adults ( 51%) intend to spend during Black Friday and a third ( 33%) are looking to spend up to a quarter of their Christmas shopping budget on Black Friday sales.

There is also an increasing acceptance of second-hand gifting for Christmas this year, according to the survey, with 67% of adults stating they would be happy to receive a second hand or refurbished gift.

Jamie Britton, senior insight manager at the IPA, said: “This survey reveals the true impact that the prolonged cost-of-living crisis, coupled with rising interest rates, is having on consumers’ spending plans.

“It is particularly significant here given that the Christmas season is known to be the season for giving. To navigate this tough environment, brands must pay attention to these consumer intentions and ensure they are gauging and appealing to the mood of the nation in both their advertising and their seasonal offerings.”