UK consumer sentiment weakens post Budget
By Abigail Townsend
Date: Monday 15 Dec 2025
(Sharecast News) - Consumer sentiment has softened in the wake of this year's Budget, a long-running survey showed on Monday.
The latest S&P Global Consumer Index came in at 44.7, down from 45.2 in November and the lowest print since April.
Among the index's sub-measures, expectations for finances in a year's time fell to 44.2 from 45.3 before the Budget, a 24-month low. Current finances were also down, moving to 40.7 from 41.6. The overall household finance index shed one point at 42.4.
Cash available to spend edged up, but views on making major purchases remained depressed, at 38.1.
The labour market sentiment index ticked lower, off 0.4 points at 52.2, while the savings index rose to a two-month high of 43.1.
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.
"Consumers are unlikely to provide much of a boost to the economy as we head into 2026."
The consumer sentiment index, which has been running sine 2009, is based on a panel of 1,500 UK households.
The most recent data were collected between 4 and 8 December, a little over a week after the Budget on 26 November.
Chancellor Rachel Reeves used the fiscal event to address headwinds such as soaring government spending and high debt.
Although previously flagged plans to raise income taxes come to nothing, income tax thresholds were once again frozen, this time until 2031, a year longer than initially expected.
Reeves also announced a council tax surcharge on properties worth £2m and a 2 percentage point increase in income tax on dividends, savings and property, as part of a package of tax-raising measures worth £26bn.
Interest rates, meanwhile, remain high by historical standards at 4%, as the Bank of England attempts to tame persistently sticky inflation, especially in food. However, it is widely expected to trim the cost of borrowing when it meets on Thursday for the final time this year.
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