Consumer confidence plunged to a four-month low last month, a leading survey has suggested, as Budget tax rumours shared by Labour officials instilled fear in Britons up and down the country.
S&P Global’s UK consumer sentiment index slipped back in November as households became more nervous about their finances.
The reading for household finances dropped from 47.5 in October to 43.4 in November, far below the 50-figure mark for neutrality and the lowest reading since March.
The consumer confidence tracker, which combines fears about household finances with spending, saving and labour market sentiment, was recorded at 45.2.
There was also the first decrease recorded to private sector workers’ incomes, which researchers at S&P Global said had ended a run of consecutive increases throughout 2025.
When public sector workers were taken into account, income levels rose, according to survey results.
Maryam Baluch, economist at S&P Global Market Intelligence, said the deterioration of household expectation was linked to a “steepening fall in disposable incomes, pointing to reduced spending across all income tiers”.
“As we approach the Autumn Budget, a sense of unease permeates across UK households, who are keenly awaiting the Chancellor’s forthcoming decisions,” Baluch said.
“Many households are grappling with uncertainty regarding potential changes in taxation, public spending, and economic forecasts that could significantly impact their financial wellbeing.”
Low consumer confidence due to Labour’s ‘naivety’
City analysts at Shore Capital blamed the Labour government for sapping confidence out of Brits due to “total incompetence” ahead of the Budget.
“There is no point speculating as to what will be in the 2025 Budget because it appears that just days out the Chancellor does not have a clue either,” Clive Black, a research analyst at Shore Capital said.
“Whilst our basic disposition is to look to the jollier and fun side of life, it is with great disappointment and frustration, from a UK consumer economy perspective, that we approach the Budget of 2025 with such disdain for the top leadership of the country, and to be clear many senior officials, where to ideology, naivety, and stupidity, we can add total incompetence.”
Black said the alternatives to Labour in the form of Kemi Badenoch, Ed Davey, Nigel Farage or Zack Polanski were also “stark” as political uncertainty was set to worsen.
“What those same out of touch politicians and officials in Whitehall do not seem to realise, though, is the damage all this does to the reputation of the UK as a place to invest too.”
“It is not hard to guess what the leaders of the Gulf States, India, the USA and closer to home in the EU make of all this nonsense.”