UK consumer confidence sinks as Budget uncertainty ramps up
By Benjamin Chiou
Date: Thursday 20 Nov 2025
(Sharecast News) - Consumer confidence dropped sharply this month, according to a survey out on Thursday from the British Retail Consortium, falling to levels not seen since April when the US waged a tariff war on its trading partners.
Some 58% of UK consumers said they expect the economy to deteriorate over the coming three months, up from 48% in October, the BRC's Consumer Sentiment Monitor showed.
The proportion expecting no change in economic conditions fell to 24% from 33%, while the level predicting an improvement held steady at 14%. As a result, the net balance on the state of the economy fell to -44% from -35%.
This was its lowest since April when it slumped to -48%, following the launch of Donald Trump's sweeping trade tariffs that threatened to hike prices across the world.
The net balance on consumers' personal financial situations fell to -16% in November from -11% in October, while their personal spending levels fell to +14% from +18% and the personal savings net balance rose to -5% from -9%.
Expected spending on groceries jumped to its highest since the survey began in 2024, with households bracing for Christmas amid high food price inflation, though expected spending across all retail together fell.
Helen Dickinson, chief executive of the BRC, said November has been a "tumultuous month" with uncertainty on the rise ahead of next week's Autumn Budget.
"Strong hints by government earlier this month of income tax rises heightened public concern about their own finances and the wider economy, though government has since rowed back," Dickinson said.
"The Chancellor needs a few rabbits from the Budget hat next week to bolster weak consumer and business confidence - both essential for economic growth. Delivering on her promised business rates reforms and helping bring down the spiralling cost burden facing retailers will keep price rises in check and revive the fortunes of many struggling high streets."
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