Never have consumers had it so bad, according to a new poll. It found that the proportion of people who claimed to have no spare cash had risen to 27 per cent – the highest since records began in 2005.

The Consumer Confidence Survey, released by the British Retail Consortium (BRC) and the Nielsen Company, showed that the number of people with nothing left after paying bills was six per cent higher at the end of 2010 than it was a year earlier.

Sentiment might have improved in the last quarter of the year – it was two points higher than the previous three months - but 82 per cent still think Britain is in recession and only 14 per cent believe it can crawl out of the downturn within 12 months.

Fewer people said they were spending disposable income on such items as new technologies and home improvements, instead they were using any spare cash to pay off debts and credit cards.

"The survey shows mounting worries about household costs, an unshakeable belief that we are still in recession and record numbers with no spare cash. A significant and permanent strengthening of consumer confidence is clearly some way off," said BRC director-general Stephen Robertson.