Lloyds Bank’s latest Spending Power Report has found that 66% of Brits think their own finances are in order but only 40% have confidence in the UK’s finances.

46% of people lack confidence in the UK’s current employment situation, yet 81% are comfortable with their own job security.

54% report a gloomy outlook on inflation which would normally indicate a potential squeeze on spending; however 80% report having disposable income after bills and essentials have been paid for.

69% of people feel they either have the same amount or more disposable income than they did at the start of 2018. 30% of those between 18 and 24 have experienced an increase in disposable income since the start of the year (vs 27% of 25-34, 15% of 35-44 and 11% of 45-64).

Robin Bulloch, managing director of Lloyds Bank, said: “During this heightened period of economic uncertainty in the UK, it’s understandable that many will err on the side of caution when considering the future of the country’s finances.

“Therefore, the optimism and resilience shown by people in their own finances is great to see.

This demonstrates that people are really taking control of their finances and effectively managing their money.”

Lloyds’ analysis of its own internal data has shown consumers’ essential spend has increased 3% since last July. This has mainly been driven by people spending nearly 3% more on groceries across the same period, and a 10% rise in fuel spend reflecting recent sharp rises in pump prices.

Even with these significant increases to household spend, household finances are in good shape with 63% confident in their position.

However,Lloyds found a gap between the optimism of buyers and renters. 51% of homeowners feel positive about the current level of inflation, against just 36% of renters. Homeowners are also more confident with the UK’s employment situation (60% vs 44%), the UK’s financial situation (43% vs 35%) and unsurprisingly the UK’s housing market (49% vs 30%).