Consumer confidence took a tumble this month amid growing speculation about possible tax rises in the upcoming Budget, the British Retail Consortium reported.
For UK consumers, their expectations regarding the state of the economy fell sharply from -35 in October to -44 in November.
Consumers’ personal financial situation worsened to -16 this month, down from -11 in October.
This saw a drop in their personal spending overall, which fell from +18 to +14 in November and an increase in personal savings to -,5 up from -9 the month before.
BRC chief executive Helen Dickinson said: “It has been a tumultuous month of Budget speculation and consumer confidence took a tumble.
“Strong hints by the government earlier this month of income tax rises heightened public concern about their own finances and the wider economy, though the government has since rowed back.
“With Christmas fast approaching, public expectations of spending – both on non-food retail goods and across wider spending – fell. Though expected spending on groceries did rise to its highest level since the survey began in 2024, as households are preparing for Christmas during a period of high food price inflation.
“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.
“After decades of retail and hospitality paying the lion’s share of business rates, there is finally an opportunity to turn this broken tax into one that encourages local investment and supports local jobs.”
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