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.