Most people in Yorkshire reject Chancellor George Osborne’s claim that the economy has moved from ‘rescue to recovery’ a new report reveals.

It also reveals a sharp rise in the number of people in the region who struggle financially between pay days.

Research by insolvency body R3 revealed that 46 per cent of those questioned rejected Mr Osborne’s economic recovery claims made in a speech this week, while 40 per cent agreed with the Chancellor. Both figures were above the national average.

R3 says that the number of people in the region who say they struggle to payday has increased from 33 per cent in February to 51 per cent in the latest survey.

Chris Wood, Yorkshire R3 vice chairman and partner at Cleckheaton-based Clough Corporate Solutions, said: “Optimism about the wider economy still isn’t entirely filtering through to how adults in the region and beyond think about their own bank balances.

“The rising cost of living, credit card debts, and rent costs are all preying on the minds of British consumers, many of whom are finding that their financial breathing room is becoming smaller and smaller. Meanwhile, individual insolvencies have begun to rise again, as has consumer borrowing for the first time in a number of years.”

Seventy-nine per cent of adults in Yorkshire and Humberside who struggle to make ends meet until payday blame the rising cost of living, slightly down from the June figure of 82 per cent. A quarter blame spending on going out or non-essential items, while 22 per cent say wage freezes are to blame.

Nationally, 18-24 year-olds face the biggest problems with rent payments, with 28 per cent of those in this age group who struggle to make it to payday saying rent is the reason for their difficulties.

Mr Wood added: “A few quarters of economic growth won’t make up for the impact the two-decade long consumer credit bubble has had on Britain’s household finances. Savings are low and there is still a worryingly high level of household debt out there.

“If wages can’t keep up with the rising cost of living, more and more adults will feel like they’re being left behind by growth.”

The latest Personal Debt Snapshot also finds 29 per cent of adults in Yorkshire without any savings to fall back on, compared with 27 per cent nationally.

“Those without savings will struggle to deal with financial shocks, like job losses. If this age group can’t rebuild their savings over the next few years, we’ll be seeing a large number of people reaching retirement without any savings to fall back on.

“It is not surprising that working adults are more likely to feel that economic recovery has yet to have an impact on their personal finances.”