I've decided to cut back this year, too. Although I've been saying that for some years, this year it's actually happening. I want to spend less, I want to be kinder to the environment and I want less stress in my life. I've also requested that people cut back/don't give gifts to me. I don't need anything much and I don't have room for it anyway.
So, Ethelbags, take a look at your list of people you buy for. Can you cut back on that? If you don't want to go into your financial situation, just say that stopping gifts would just make everyone's life easier and less stressful?
For those that you still want to buy for, there is plenty out there for well under £10. As others have said, the pound stores, Aldi, Home Bargains, The Works and Tiger all have lots of things under £5.p and as low as £1. Don't forget the likes of Primark, which sells home and beauty as well as clothing, too. They have things such as scented candles in glass holders for as little as a pound.
Don't let this spoil Christmas for you!