Consumer confidence in economy ‘at lowest level since cost-of-living shock'
Consumer confidence in the future of the UK economy has plummeted to its lowest level since the height of the cost-of-living crisis, according to a survey.
Almost two-thirds of consumers (64%) believe the economy will get worse before it gets better, according to the Which? Consumer Insight Tracker.
Confidence fell by seven points to minus 53 in April – its lowest level since December 2022 when the cost-of-living crisis was at its height and the inflation rate was above 10%.
When Which? asked respondents who reported being pessimistic why they felt so negatively about the future UK economy, 67% said it was because of global events, while 63% cited changes in prices and 60% mentioned government tax changes.
Confidence in future household finances also fell significantly, by 10 points to minus 19 – the lowest level reported since July 2023 – while confidence in current household finances dropped six points to minus 21.
This comes as the estimated number of households missing essential payments such as rent or mortgage, utility bills, credit card or loans remained at similar levels to March, at 1.9 million households.
The proportion of renters missing rent payments increased to 4.7% in the last month, suggesting many are still struggling to make ends meet due to ongoing cost-of-living pressures.
An estimated 13 million households (46%) made at least one adjustment to cover essential spending such as utility bills, housing costs, groceries, school supplies and medicines in the last month, although this was slightly lower than the 51% seen in March.
Adjustments included cutting back on essentials, dipping into savings, selling possessions or borrowing.
Rocio Concha, Which? director of policy and advocacy, said: 'Our research shows consumer confidence in the future of the UK economy has fallen to the lowest levels seen since the height of the cost-of-living crisis.
'Consumer protections give people the confidence to spend, so whether it's rooting out online fraudsters, taking down rogue traders or tackling misleading business practices, the Government must do more to place consumers at the heart of its plans to grow the economy and restore people's confidence.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scotsman
28 minutes ago
- Scotsman
UK Government's immigration plans could be ‘ticking time bomb' for Scottish construction
Trade association warns that potential exodus of industry professionals to England will leave nation 'bereft of skills' and damage transition to net zero Sign up to our daily newsletter – Regular news stories and round-ups from around Scotland direct to your inbox Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... The UK Government's tough new immigration proposals are 'a ticking time bomb' for Scottish construction which could cause an exodus of skilled workers and leave the sector with a massive skills gap, Scotland's largest trade association has warned. SELECT says the proposals to raise the qualification standards for foreign workers is likely to see a significant number abandoning the UK and returning home, with Scottish construction workers flooding south to fill the resulting shortage south of the Border. Advertisement Hide Ad Advertisement Hide Ad The electrotechnical body also echoed a shock new report issued this week by insisting that leaving the country 'bereft of skills' would also impact Scotland's transition to net zero, with fewer qualified professionals left to install and maintain renewable technology. Alan Wilson, Managing Director at SELECT SELECT Managing Director Alan Wilson raised the concerns with First Minister John Swinney during a meeting of Scottish business leaders last week, during which he relayed apprehensions from across the construction sector. Mr Wilsonsaid: 'Raising the thresholds for skilled workers may seem on the face of it to be a laudable aim, but it is likely to be detrimental to recruitment in the major UK population areas and that means workers will be sucked in from places like Scotland. 'In areas such as London, it's estimated that 50% of the workforce are from abroad, so if they leave, Scottish workers are likely to flood south to take up highly-paid jobs, leaving the domestic construction sector in crisis Advertisement Hide Ad Advertisement Hide Ad 'This could leave Scotland bereft of skills, with no opportunity to top up from abroad, and could lead to the worst of all possible worlds just as we need these skills to fulfil our transition to a net zero economy. 'This ticking time bomb could leave Scotland without enough skilled workers to build the country we need, which is why we had to bring it to the attention of government at the highest level.' The UK Government published its white paper policy document, Restoring control over the immigration system, on 12 May, proposing changes to make it harder to move to and settle in the UK, with a view to reducing immigration Under the proposals, Labour is proposing to raise the threshold for skilled workers from Regulated Qualifications Framework 3 (RQF3) – equivalent to Scottish Highers – to RQF6, which is degree level. Advertisement Hide Ad Advertisement Hide Ad Mr Wilson says many existing qualified tradespeople will be outwith the new threshold and insists the move will also be detrimental to recruitment, with firms less willing to recruit apprentices, creating a long-term impact on the sector. He said: 'We are facing a crisis in recruitment in almost all trades which will not be helped by the uncertainty caused by these proposals. 'The construction sector is a vital pillar of the Scottish economy, supporting infrastructure development, housing delivery and the green transition, yet it is experiencing a persistent and growing skills shortage already. 'According to the Construction Industry Training Board, an additional 26,100 workers will be needed across Scotland between 2024 and 2028 to meet demand, yet apprenticeship starts across construction have remained flat, with only around 6,500 new entrants per year.' Advertisement Hide Ad Advertisement Hide Ad Mr Wilson's warning comes after a new report by Aberdeen & Grampian Chamber of Commerce shows the UK is losing the skills and supply chain needed to deliver net zero, with a growing share of energy sector jobs, investment and innovation shifting abroad. The 41st Energy Transition Survey of more than 100 firms shows that two-thirds expect to increase their headcount overseas in the next five years, with almost half saying staff were already leaving the UK to work in other energy regions. Mr Wilson – who chairs the Construction Industry Collective Voice – also pointed out that architecture schools in Scotland, who often rely on fees from abroad, may have to shut down if students choose not to study there as a result of post-qualification uncertainty. He added: 'The uncertainty the proposals contain will be particularly acute for both graduate visa holders completing their training and employers, who may see no reward in investing in graduates from abroad qualifying in Scotland. Advertisement Hide Ad Advertisement Hide Ad 'Similarly, students may not choose to study architecture in Scotland because of the uncertainties post-qualification employment. This could have significant knock-on effects for architecture schools who rely on foreign students fees to make the courses viable.
Powys County Times
39 minutes ago
- Powys County Times
Which Powys projects get £11million in Levelling Up funds
Resurfacing works, active travel routes and a new footbridge are among the projects in Powys set to benefit from £11million of Government cash. Powys Council has revealed which projects in Mid Wales will be backed with the latest cash from the UK Government's Levelling Up Fund for the 2025/26 financial year. The council says there is a focus on delivering projects that aim to boost recreational tourism and contribute to local economic growth, specifically ones aimed at transport investment. Among these projects is a resurfacing scheme to improve access to tourist hotspots and support the National Cycle Network. Another is active travel projects in Llandrindod Lake, Brecon promenade, the next phase of the Llandrindod Wells to Howey route and a section of the Crickhowell to Llangattock route, designed to improve access between towns and surrounding tourist destinations, which the council hopes will make it easier for visitors to explore Powys using active modes and improve accessibility for key locations. Replacing the Pont y Milgy footbridge in Ystradgynlais will be the first project in a wider scheme to improve visitors' accessibility to Powys' Rights of Way network. Cllr Jake Berriman, Leader of Powys County Council, said: 'This latest contribution of Levelling Up Funding from UK Government will allow us to begin making the improvements needed to the county's transport infrastructure. 'Through this timely investment, we aim to improve accessibility to key services, encourage active travel and support recreational activities, providing better journeys for everyone and improve connectivity to tourist hotspots. 'We are hopeful to receive confirmation of additional Levelling Up Funding to enable us to complete further projects in the future.' The Levelling Up funding aims to address regional disparities across the UK by investing in vital local infrastructure projects to increase pride in place and bring people closer to opportunity. Cllr Berriman added: 'This latest contribution of Levelling Up Funding from UK Government will allow us to begin making the improvements needed to the county's transport infrastructure. 'Through this timely investment, we aim to improve accessibility to key services, encourage active travel and support recreational activities, providing better journeys for everyone and improve connectivity to tourist hotspots.'
Reuters
an hour ago
- Reuters
Brazil plans to cut tax breaks, curb education spending in fiscal package, say sources
BRASILIA, June 4 (Reuters) - Brazil's government is negotiating a package of fiscal measures with congressional leaders that includes cuts to tax exemptions and limits on the growth of transfers to an education fund, according to sources familiar with the talks. After initially signaling the measures would be unveiled on Tuesday, Finance Minister Fernando Haddad said they would be disclosed only after further discussions with party leaders on Sunday. First reported by local newspaper Valor Economico and confirmed by three government sources who requested anonymity, the package is being prepared as an alternative to the controversial hike in the financial transactions tax (IOF) announced last week, which drew broad backlash from lawmakers and business sectors. The plan focuses heavily on reducing tax benefits, a longstanding target of President Luiz Inacio Lula da Silva's leftist administration, said three sources. His economic team often criticizes the volume of tax exemptions that weaken public revenues, though previous attempts to roll them back have seen limited success in Congress. That includes a payroll tax break for companies, which remains in place without due compensation. One of the sources said the new package includes a proposed constitutional amendment that would establish rules to curb growth in transfers to the Fund for the Development of Basic Education. A similar initiative in last year's fiscal package was watered down by Congress, which blocked efforts to redirect more of the fund's resources to full-time education spending. The new measures aim to create fiscal space for the government to revise the recent IOF tax decree, which increased rates on a range of credit, foreign exchange, and pension transactions.
