Fears the Chancellor will raise taxes weakens consumer confidence

In July consumer confidence slightly weakened as shoppers have concerns the Chancellor will raise taxes again in the upcoming Autumn Budget.

GfK’s Consumer Confidence Index fell by one point and has stayed in negative territory holding at 19 points.

GfK researchers are muting that consumers are “sensing stormy conditions ahead” over the Economy since Rachel Reeves started raising taxes.

GfK’s index shows the fall was not as low as expected as they had predicted a reading of 20 in July.

Neil Bellamy, consumer insights director at GfK, said, “The key measures on personal finances, the economy and purchase intentions are flat in July, and many will conclude that consumers are in a cautious wait-and-see mood.

“But the data suggests that some people may be sensing stormy conditions ahead.

“With speculation growing over possible tax rises in the autumn budget, and price pressure contributing not just to higher inflation already but also to the likelihood of worse inflation to come, the news is worrying.”