In September, GfK’s Consumer Confidence Index dropped seven points to minus 20, reflecting sharp declines in expectations for both personal finances and the overall economy in the upcoming year.
\The authors of the research said it was “not encouraging news” for the recently elected administration, which has made expanding the economy its main objective.
Money latest: Millions of people have already purchased mince pies for Christmas.
However, within weeks of becoming chancellor, Prime Minister Sir Keir Starmer and Rachel Reeves moved to warn of a legacy £22 billion “black hole” in the public budget, claiming it would result in it.
Cuts to winter fuel payments—which could leave up to 10 million seniors with a £300 reduction in income—and inflation-busting pay agreements for public sector employees are among the actions already implemented.
Although The news reported on Friday that the Bank of England’s decision to halt a program of loss-making bond sales would leave Ms. Reeves £10 billion better endowed than she had anticipated, tax increases and spending cuts are still largely predicted in the speech to MPs next month.
It further stated that, as a demonstration of her dedication to financial restraint, she was still expected to carry through with her budget projections.
