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Britons are aspiring toward to the lifestyle of millionaires, but with an income that doesn’t match. Retail analysts Mintel say that spending in 2006 reached £1.09trillion – a rise of 9% over 2005.

But the increased spending is not on necessities. Take holidays for example: trips to the Caribbean, the United States and the Far East accounted for an amazing increase of 41% over the last four years to reach £8bn. In the same period there was a definite thirst for the champagne life-style as sales of wine and champagne increased by 26% to £10.2bn.

Celebrity culture has helped to take spending beyond previous levels, as fashion chasers copy famous names such as Victoria Beckham, Coleen McLoughlin and Keira Knightley. In the past few years fashion lines have been introduced, backed by names such as Kylie Minogue, Madonna and Kate Moss. Clothing an accessories accounted for £38.4bn in 2006, a rise of £3bn from 2002.

The trouble is that spending far outstripped the increase in wages, so credit must account for this spending. Consumers are adopting a live now, pay later lifestyle, with pressure put on their credit cards, and increased mortgages.

There have already been a rising number of bankruptcies and repossession of homes, and personal debt has now reached £1 trillion.

Britons have ignored higher energy costs, rising interest rates and inflation drifting upwards to live like those they see on TV and read so much about in magazines. It seems that Brits can’t get enough of the celebrity lifestyle with jet-setting, designer fashions and the latest electronic gadgets becoming must-haves.

Homes accounted for the biggest percentage of financial outlay, with 40% going on furniture, mortgages and goods such as flat-screen TVs. This figures is now £400bn a year, a rise of 65% in the last four years.

Spending shows no signs of letting up as people’s future spending plans included furniture and eating out for many, but paying off credit cards and mortgages were less popular options.