Britons borrow less in May

Squeezed households borrowed less money last month according to new figures from the British Bankers’ Association (BBA).

It said that consumer credit eased to growth of 5.1% in May compared to 6.4% in the previous month as people eschewed personal loans and overdrafts.

Inflation hit its highest level for nearly four years in May at 2.9%.

Eric Leenders, BBA’s managing director for retail banking, said: “This month’s figures show that in the run-up to the general election, credit growth in personal loans, cards and overdrafts has slowed, which was reflected in lower spending; with increased household costs affecting growth in deposits and saving.”