UK consumer confidence has slipped again ahead of the government’s upcoming Budget, reflecting growing anxiety among households who expect a tougher economic climate in the months ahead. New survey data suggests that many Britons are pessimistic about their personal finances, future spending power and the broader direction of the economy, signalling a fragile backdrop for policymakers preparing to unveil what ministers have hinted will be a “difficult” fiscal package.
The latest GfK Consumer Confidence Index, a benchmark used widely by investors, retailers and analysts, shows a marked dip in sentiment across nearly all tracked indicators. Households report declining optimism about both their current financial situation and the year ahead, mirroring concerns about higher living costs, stagnant wage growth and lingering inflationary pressures that have not fully eased despite earlier gains.
Economists note that this shift comes at a critical moment for the UK government, which is under pressure to stabilise public finances while navigating sluggish growth. Treasury officials have warned that the forthcoming Budget will require “tough choices,” raising expectations of tax adjustments and spending restraint that could further weigh on consumer mood.
The broader picture is one of caution. Retailers say footfall has softened in recent weeks, and early holiday-season indicators suggest that households are delaying discretionary purchases amid uncertainty. Many families are bracing for rising energy bills in the winter quarter, coupled with higher transport and grocery costs that continue to outpace wage increases. Survey respondents also reported lower confidence in making big-ticket purchases such as appliances or cars, a trend that has persisted throughout the year.
