Credit crunch could cut alcohol-related crime; Christmas.

CHRISTMAS will be a key indicator of the true effects of the credit crunch on consumer habits, say experts at Durham University.

Shopping could be hit while a potential drop in spending on alcohol could mean a more peaceful festive season on Britain's streets. It could also mean that people enjoy a more 'spiritual' Christmas as they are forced to cut back on materialistic habits.

John Tierney, expert in alcohol consumption and crime and disorder at Durham University, says research shows the credit crunch could reduce violent alcohol-related crime.

Dr Tierney, senior lecturer in the School of Applied Social Sciences, says: "Interestingly, research shows that during periods of high unemployment violent crime tends to fall. This is because people (especially young men) have less money to spend on alcohol.

"On the other hand, we will see intense, cut-throat competition among major retailers, as they lower the prices of their drinks.

And, rather than tightening their belts, people may see the festive season as a good excuse to drown their sorrows."

Dr Lawrence Black, expert in affluence and consumerism, suggests Christmas will test the true extent of the economic downturn.

Dr Black, lecturer in history at Durham University, says: "In recent years, we have become more used to spending than saving and the question is will this stop in 2008 as the credit crunch freezes the Christmas consumer frenzy?

"The holidays will be a test of popular responses to the economic downturn - of its extent and the degree to which Britons can cope."

Economist Tony Cleaver, of Durham University Business School, says: "The credit crunch means it's bad for you and I to borrow and spend for Christmas, but it's good if the Government does.

"If you or I spend too much, then we hit hard times in January. But if the Government overspends, then that extra money flows into the economy and we all get a happier New Year!"