Consumer confidence tumbles amid ‘tumultuous’ build-up to Budget
Consumer confidence has tumbled following a “tumultuous” month of Budget speculation, figures show.
Consumer expectations for the state of the economy over the next three months have fallen significantly to minus 44, down from minus 35 in October, according to data from the British Retail Consortium (BRC) and Opinium.
With Christmas approaching, public expectations of spending – both on goods other than food and across wider spending – fell.
However, households said they expected their spending on groceries to rise to its highest level since the survey began in 2024 as they prepare for Christmas during a period of high food price inflation.
BRC chief executive Helen Dickinson said: “It has been a tumultuous month of Budget speculation and consumer confidence took a tumble.
“Strong hints by government, earlier this month, of income tax rises heightened public concern about their own finances and the wider economy, though government has since rowed back.
“The Chancellor needs a few rabbits from the Budget hat next week to bolster weak consumer and business confidence – both essential for economic growth.
“Delivering on her promised business rates reforms and helping bring down the spiralling cost burden facing retailers will keep price rises in check and revive the fortunes of many struggling high streets.
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The level of taxation in the UK is horrendous and we seem to get little in exchange. Things are not getting better. When I think back to the 60’s high streets were exciting, chapels and churches were vibrant. Pubs were fun and full and last but not least if you needed to phone any organisation, the phone was answered and there was someone there to help you.
You could also get to see your GP. You had to queue but you did not need an appointment. Speaking of phones, you could dial 100 and in a couple of rings a voice would say operator services how can I help you.
14 years of Tory austerity coupled with a steady stream of bad news from Labour hasn’t helped. The most important element in an economy are people. People have feelings, Tory and Labour doom and gloom isn’t likely to help the economy grow.