The proportion of household budgets spent on recreation, foreign holidays and restaurants has increased from 32% in 1971 to 40% last year.
However, the total proportion spent on goods has fallen from 65% to 47% in 2007. The amount spent on food and non-alcoholic drinks declined from 21% to 9%, while spending on clothing dropped from 9% to 6%.
The report also highlighted that young adults are remaining longer in their parental home; nearly a third of men and a fifth of women aged between 20 and 34 live with their parents.
People in Britain are also travelling more; the total distance travelled by road, rail and air has increased 95% since 1971 and the number of adults using internet banking has increased from fewer than 2.5m in 2000 to more than 21m in 2007.