80 per cent of all Brits have less than £500 in their bank account

The number of Brits with persistent debt problems has jumped by almost a third as the cost-of-living crisis bites further.

Charlie Nunn, the boss of Lloyds Banks, said customers are “concerned” about the economy but said he believes many are talking “too negatively” about the financial outlook.

It comes after inflation surged to 9.1 per cent in May and is predicted to rise by as much as 11 per cent this year amid jumps in the cost of energy, food and raw materials.