Easterhouse, in the east end of Glasgow, has been identified as the area of Britain likely to to suffer most from the economic downturn.

Research by CACI, the market analysts, says the area will be badly affected by rising fuel and food costs because of high levels of debt, low pay and a lack of savings.

The community has no consumers who are classed as WISE (Wise, Immune, Savvy, Empty Nesters) — people in a strong position to ride out the credit crunch.

Tony Quinn, co-ordinator of the Money Advice Project in Easterhouse, which has negotiated debt repayment programmes for more than 3,000 people, said: “The basic everyday living costs are causing difficulties for people in terms of how do they keep the kettle boiling and keep their houses running.

“A lot of people in this area are on low pay and a lot of people are on benefits; they are disproportionately affected by these rises because they have very little, if any, disposable income to start with.”

Easterhouse shares the title of UK credit-crunch capital with the Lozells and Nechells areas of Birmingham, Middlesbrough town centre and Stockbridge Village in Liverpool. Other areas of Scotland likely to suffer include: Possilpark in Glasgow, where 0.1% of residents are classed as WISE; Bridgeton, also in Glasgow (0.5%); and Dundee city centre (0.6%).

In contrast, the upmarket suburb of Milltimber in Aberdeenshire is the best placed neighbourhood in Scotland and one of the best placed in Britain to ride out the credit crunch.

The CACI report shows that 39.1% of those living in Milltimber, mainly people working in the North Sea oil industry, are classed as WISE.

There are about 340,000 WISE consumers in Scotland, 7% of the population. These people are typically over 50, have savings of more than £28,500 — four times the national average — have no mortgage and pay off credit card debts every month.

The areas of Balfron, Blanefield, Croftamie and Drymen, all near Glasgow, have the second-highest percentage of WISE residents. Kilmalcom in Renfrewshire is third, Dollar in Clackmannanshire is fourth and Skelmorlie in Ayrshire fifth.

Easterhouse is one of Scotland’s most poorly educated communities. According to Scottish government statistics almost two-thirds of adults living there have no formal qualifications.

Jonathan Burston, director of CACI, who compiled the report, said years of underinvestment in impoverished communities meant that they were ill-equipped to deal with an economic downturn.

“These people are generally likely to have lower incomes, they generally won’t have any savings, they’re not as financially savvy.

“A downturn in the economy is going to make it harder for them to make ends meet and they will have to tighten their belts a bit more.

“If it starts to impact on employment, they’re most likely to be hit.

“Areas like Glasgow have previously been areas of blue collar workers and now the industrial base has changed and unfortunately the investment in the area perhaps hasn’t been as big as in other areas and Glasgow is more adversely affected than other parts of Scotland.”

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