Many Britons 'still planning large Christmas spending'

This year may see as much as £13.5 billion spent on festive gifts, according to new figures published this week.

The financial outgoings of British consumers might reach an average of £294 when it comes to Christmas present spending, the insurance firm LV= believes.

LV= home insurance managing director John O'Roarke commented that the recession does not appear to be completely affecting people's festive spending habits.

He noted: "Instead, shoppers are opting for alternative ways of saving some money, by buying for fewer people or looking in outlets where they wouldn't normally shop."

However, Mr O'Roarke's organisation also suggests that 27 per cent of people believe that the festive period may pose money difficulties, in a development which could encourage some consumers to look at ways they can get credit.

Meanwhile, LV= has also revealed this week that a number of older people are looking to use their home as a source of retirement finance.