Chancellor George Osborne’ s Budget has done little to bolster any financial feel-good factor as the UK noses out of the downturn.
Many feel the damage to personal finances was already in the pipeline with hikes in VAT and taxes
announced months ago.
Around four out of 10 say Osborne’ s tax neutral speech may not have added to their money woes, but
nothing he said eased them either, so they are left concerned about the fate of their finances, while 37%
believe the Budget has left them worse off.
After the Budget, a survey reports 25% of people are ‘ less confident’ of the economy, 36% are ‘ less
confident’ about their own money and 37% are not sure the UK has seen the last of the recession.
Popular announcements included scrapping the planned 4p fuel duty increase (93%), increasing the
personal tax allowance (92%) and cutting the price of petrol by 1p (89%).
M ost people put major life decisions on hold
Many are worried about their jobs (20%) and most (58%) consider any major life changes or financial
decisions should go on hold.
Ann Robinson, director of consumer policy at uSwitch.com, who carried out the research,
said: “Consumer confidence has remained low after the Budget. Motorists have something to smile
about following a cut in fuel duty, and those looking to get on the housing ladder have been given a
leg up. Following the announcement of a scheme to help at least 10,000 first time buyers nearly a third
(30%) of Brits now say it’s a good time to be a first time buyer – last year just 8% felt this way.
“Consumers are still feeling the pinch and need to take better control of their own budgets. Stripping
down living costs and household bills to the bare minimum will help consumers enjoy more disposable
income, and will also help them save for the future.”
Overall, the research highlighted the areas causing most financial concern as unemployment (29%), the
benefit system (25%) and the national debt (24%).
