SCOTTISH consumers are making significant cutbacks in spending as a result of unemployment, inflation and depressed wage growth.

Figures from professional services firm Deloitte suggest one in 10 households in Scotland has experienced a reduction in income in the last quarter as a result of redundancy, loss of bonuses, reductions in overtime and increased part-time working.

Almost one-quarter of Scots have increased their personal debt levels, while 18% feel pessimistic about job security.

This has resulted in a reduction in discretionary spending, with 52% of Scots feeling negative about disposable income.

Ian Stewart, chief economist at Deloitte, said: "A fierce squeeze on disposable income and high levels of macroeconomic volatility pushed the consumer sector back into recession in 2011.

"The UK has generated far higher levels of inflation over the past year than any other industrialised nation and this has hit consumer spending power.

"Inflation should fall sharply in 2012, bringing some relief to hard-pressed consumers. But with unemployment heading up, credit in short supply and the economy in a fragile state we would expect household spending to increase only modestly in 2012."

Scottish consumers are cutting back across all discretionary categories, with 43% spending less on entertainment and 28% spending less on clothing and footwear. Around 24% are cutting back on holidays and 28% are spending less on furniture and homeware.

In contrast, inflation is driving up the cost of essentials, with more than half of all respondents (59%) spending more on utility bills, while 44% are paying more for food and 33% are spending more on transport costs.

Ian Steele, senior partner for Deloitte in Scotland, said: "Discretionary spending has been hit hard in the past three months. Consumers are adapting to the current economic environment by trading down, staying in and postponing the purchase of big-ticket items.

"Consumers are telling us they are deliberately making fewer impulse or spontaneous purchases. People are being forced to prioritise their spending habits."

He added: "While some groups are demonstrating greater resilience than others, our research shows the squeeze is being felt by most UK consumers which presents an enormous challenge to all consumer businesses."

Last week, the Scottish Retail Consortium (SRC) reported total sales in November were 1.3% down on last year – the worst drop for any month since records began in 1999. Like-for-like sales were 2.1% lower than a year ago, the sixth decline in the past seven months.

Ian Shearer, SRC director, said: "This performance is particularly troubling in the run-up to Christmas.

"Retailers in Scotland have had an exceptionally tough year, worse than the UK as a whole. Consumer confidence is lower in Scotland than the UK average and householders are more worried about jobs and the state of their personal finances.

"Christmas should deliver some much-needed cheer to retailers but they'll be worried about consumers tightening their belts again in the New Year."