Confidence among UK households slipped to a new low under the Labour government, as consumers brace for higher prices and businesses warn of a hiring hit from rising payroll taxes.
UK consumer confidence has dropped to its lowest level since the Labour government took power, with a net score of minus 37, the worst since July 2024. This decline reflects concerns over rising prices and the impact of higher payroll taxes on business hiring. The sharp reversal in economic expectations, falling nearly 40 points since July 2024, highlights the challenges faced by the government in stabilizing confidence amid significant tax hikes.
