Many consumers will be cutting back the amount they spend on Christmas this year, rather than raiding their savings accounts to afford extra gifts.

This is according to new research from Which?, showing that one in four people plan to buy presents for fewer people than last year.

Furthermore, seven per cent of those polled said they would not be able to purchase a Christmas tree due to their purse strings being tightened, while one in ten will buy an artificial one.

For 16 per cent of people, however, the financial shock could well come in the New Year, as they revealed that they would be doing most of their Christmas shopping with credit cards.

Richard Lloyd, executive director of Which?, said: "Savvy shoppers can save money with online deals, discount days and pre-Christmas sales.

"You should compare prices between stores and don't be afraid to haggle to get the best price."