UK households slash spending at fastest pace in nearly five years

In November 2025, British consumers sharply reduced their spending — marking the biggest drop since early 2021 — as economic uncertainty and weak confidence continue to weigh on retail and services.

According to Barclays, card spending in the UK fell by 1.1 % year‑on‑year in November, the steepest decline since February 2021. Despite high hopes for Black Friday, the usual surge in retail activity failed to materialize — overall gains were modest and largely confined to essential goods like food.

Discretionary sectors — pubs, restaurants, and non‑food retail — suffered more: pub spending dropped 1.5 %, while non‑food retail barely grew. As a result, consumer confidence remains fragile. The drop in spending has heightened expectations that Bank of England might respond by cutting interest rates, possibly from the current 4 % down to around 3.75 %, in an effort to stimulate demand.