UK consumer confidence dips to year-low amid tax hike concerns

The GfK Consumer Confidence indicator in the UK dipped to -21 in October 2024, down from -20 in September, marking the lowest level of the year as concerns over potential tax increases in next week’s Budget weighed on households and businesses.

UK consumer confidence dips to year-low amid tax hike concerns

This latest figure aligned with forecasts and matched levels seen in February and March. Three out of the five components of the survey showed declines. Neil Bellamy, director of consumer insights, noted, "As the budget statement approaches, consumers are feeling despondent, even with a decrease in the headline inflation rate."

UK leaders signal tax hikes amid inflation slowdown and rate cut speculations

Prime Minister Keir Starmer and Chancellor Rachel Reeves have previously signaled that tax hikes may be necessary to address the government's funding gap in the upcoming budget. Meanwhile, recent data indicated a significant inflation and wage growth slowdown, leading traders to speculate on potential rate cuts from the Bank of England in November and December.