Consumers are nervously awaiting the budget, reports data provider GfK, wiping out recent recovery in confidence.   08:19 Darren Jones, the Chief Secretary to the Treasury, says the government is taking “tough decisions” to fix the public finances.

Prime Minister Keir Starmer's warnings about the state of the British economy and the likely need for tax increases in next month's budget have caused consumer confidence to plunge this month, according to a survey published on Friday.

The longest-running measure of consumer confidence fell sharply in September, raising concerns about whether government rhetoric about Budget "pain" has spooked people. GfK's Consumer Confidence Index had been recovering after years of rolling crises, higher interest rates and inflation gradually creeping up.

Starmer insists he is setting out reality of ‘badly damaged economy’ as GfK survey shows sharp fall in household morale

The last time the index declined so steeply was in April 2022, in the wake of Russia's invasion of Ukraine which sent energy costs soaring.

Some economists have linked the drop to officials' warnings of a "painful" Budget at the end of August, although it is impossible to prove a link. There were "major corrections" - or double digit falls - for consumers' perception of the general economic situation,

A long-running measure of consumer confidence has slumped to levels last seen at the start of the year following warnings of "tough choices" ahead in the looming budget.

Consumer confidence falls sharply as households ‘nervously’ await Budget - GfK’s Consumer Confidence Index fell seven points to minus 20, with significant drops in predictions for personal finances and the general economy.