A survey has discovered that consumers feel more pessimistic about the future of the economy and their own financial wellbeing.
A six-monthly poll carried out by Family Building Society of 2,700 homeowners and savers revealed that 60% believed the UK economy would slow down in the first half of 2025, higher than the 42% who said the same when the survey was carried out earlier in the year.
Just 7% felt there would be growth in the economy.
While the majority of respondents reported being satisfied with their individual financial wellbeing, the share of those with concerns about the feature rose from 21% in April to 35% in November.
This suggested that these respondents expected their financial situation to worsen, citing the effects of inflation, tax hikes and stagnant income.
The October Budget was the main reason respondents felt worried about the future, with 94% pointing to increases in employer National Insurance, inheritance tax changes and a lack of action to address the rising cost of living.
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Some people said, “prices are rising faster than average wage increases”, while another respondent mentioned concerns about a “lack of investment in key infrastructure, higher interest rates affecting households, and increased unemployment”.
Another said: “The pensioners like me seem to be penalised.”
Others felt that housing was still a key issue, with some suggesting building on derelict sites, abolishing stamp duty to encourage house moves, and raising the threshold.
Alistair Nimmo, director of marketing at the Family Building Society said: “The October Budget clearly has had a largely negative impression on our members. They worry that any increase in business costs will mean higher consumer prices.
“There were some bright spots. For example, the majority had not needed to help out a family member financially and many are expecting further cuts in the Bank of England base rate. But, overall, our members are pessimistic about the economy and the uncertainty of where the housing market is heading.”