Such reports make people feel more pressure in their everyday lives, both financially and psychologically, said Li Xiao, a Chinese who has recently settled in the country. "You can tell that people have less sense of enthusiasm for Christmas," Li said.

The Smiths have cut back more than half of their spending on this year's Christmas gifts compared with last year. The couple from the county of Essex usually drove more than one hour to London to do Christmas shopping in Harrods, one of the most luxurious department stores in London.

"We bought all gifts this year in local stores or a nearby shopping center. We have to budget our expenditure, as we don't know what will happen next year," Smith said. "Things might be getting worse, then we will face money problems."

Many people enjoy shopping in the West End of London during the run-up to Christmas. For some, it is also a nice day out to feel the festival atmosphere. "I made a trip a few days ago to London, I have to say the Christmas lights on Regent Street this year are not as good as before, also only high-end stores were well decorated," said his wife.

British people have been warned of an economic slump deeper than expected. As a result, thousands of people have lost their jobs, house prices are predicted to fall 10 percent in 2009, more people are expected to claim social benefits and unemployment is expected to soar. Even animal sanctuaries in the country have been inundated with dogs and cats as their owners discard them due to financial difficulties.

(Xinhua News Agency December 27, 2008)