UK household gloom deepens after Autumn Budget, S&P Global survey finds

Britain's households entered a gloomier mood after the Autumn Budget, according to a closely watched index that measures consumer sentiment. The S&P Global consumer sentiment index for December, compiled at the start of this month, provides an early snapshot of the Budget's impact. The overall reading was the lowest since April, and sentiment toward the financial outlook over the coming 12 months was the gloomiest in two years.

Additionally, the survey pointed to a further marked reduction in cash available to spend and a rising need to take on more debt, with confidence in the jobs market wavering.

Andrew Griffith, the Conservative business spokesman, said: "This festive season, the grinch won't be stealing Christmas because Rachel Reeves already has. Her budget had the longest and most miserable build-up in recent memory — and yet she still managed to make it even worse than anyone expected. With tax hikes on working people and businesses to pay for a welfare splurge, it is little wonder confidence has slumped and families are fretting about their finances. Similarly, if you tax and regulate the life out of employers, it is no surprise the job market is on its knees."

Maryam Baluch, economist at S&P Global Market Intelligence, said: "The first indicator of household confidence since the Autumn Budget makes for disappointing reading. Overall, the combination of subdued household confidence and early signs of job insecurity underscores the ongoing challenges facing UK households as they navigate an uncertain economic environment at the turn of the year." She added: "Not surprisingly, spending intentions have worsened in this deteriorating financial environment, suggesting consumers are unlikely to provide much of a boost to the economy as we head into 2026."

Officials said the findings align with broader signs of stagnation. Official figures released this week showed the economy shrank in October—the second monthly contraction in a row. Unemployment stood at about 5 percent, with forecasts showing it ticking higher to 5.1 percent. Inflation remains stubbornly high, with figures anticipated to dip from 3.6 percent to 3.5 percent—still well above the Bank of England’s two-percent target.

Reeves’s Budget last month has done little to brighten the gloom, with a series of tax hikes bringing the total tax hit since Labour took office to a record £68 billion.