Public confidence in the UK economy has taken another hit, with the latest City AM Freshwater Strategy poll showing little hope for the near future.
The polling revealed nearly one in five voters, 18 per cent, could not pay an unexpected £500 bill, categorising them as in “high financial stress”.
35 per cent said their finances were troubled or impacted, compared to 30 per cent who said they were comfortable or confident.
Meanwhile, 33 per cent said they were “just about managing” regarding budgeting and spending each month.
This comes as Capital Economics economist Ashley Webb said on Monday morning that households choosing to save rather than spend was partly responsible for the “stagnating economy”.
Webb predicted the economy would do “little more than flatline at best” in the first quarter of 2025.
Reeves’ capabilities called into question
Over half of respondents to the City AM Freshwater Strategy poll expect the economic conditions in the UK to worsen in the next year in another hit to public confidence in Chancellor Rachel Reeves.
Reeves had staked her reputation on her pledge to kickstart the economy, but following the Bank of England slashing growth forecasts in half, the Chancellor’s ability to deliver economic success has been called into question.
44 per cent of voters expect their household finances to worsen over the next 12 months, compared to roughly one in four who expect them to improve.
Nearly half of voters also believe living standards in the UK will worsen over the next 12 months.
The full impact of Reeves’ first budget is expected to be felt in April, once tax changes are officially enacted.
The rate of employer National Insurance will increase 1.2 per cent to 15 per cent and first-time buyers’ stamp duty will drop to £300,000 in early April.
Method note: Freshwater Strategy interviewed n=1,215 eligible voters in the UK, aged 18+ online, between 28 Feb – 2 Mar 2025. Margin of Error +/- 2.8%. Data are weighted to be representative of UK voters.
