UK Consumer Confidence Plummets Amid Budget Warnings

Concerns over upcoming tax increases and spending cuts drive confidence to a six-month low, according to GfK survey.

GfK's Consumer Confidence Index fell by seven points to -20 in September, the largest drop since April 2022.
The decline is attributed to government warnings about a 'painful' Budget, including potential tax hikes and welfare cuts.
Consumer sentiment about personal finances for the next year fell by nine points to -3, while expectations for the economy dropped by 12 points to -27.
The withdrawal of winter fuel payments and anticipated 'tough choices' on tax and spending have heightened public anxiety.
Economists and business leaders urge the government to adopt a more optimistic tone to prevent further economic downturn.