Consumer confidence slumps to minus 34 as chancellor faces £3.5bn borrowing blow weeks before Budget

From the Newshound archive · first published 24 September 2026.

Chancellor John Healey's Budget preparations are unravelling on multiple fronts, with public sector borrowing hitting £18.3bn in August — £3.5bn above the Office for Budget Responsibility's own forecast and the second-highest August figure on record. Consumer confidence in the economy fell sharply from minus 28 to minus 34 this month, reversing four months of improvement, with personal finances sentiment also worsening. The OECD has downgraded UK growth forecasts, PMI activity is at a three-month low, and the IMF has issued a stark warning on British debt levels. Shadow Chancellor Andrew Griffith accused Labour of losing control of the public finances despite the highest tax take in history.

British Retail Consortium chief Helen Dickinson warned Healey not to 'compound the triple blow' from employment costs, energy bills and business rates hitting retailers.

Andy Burnham is vowing to 'dial up' his Manchesterism agenda at Labour conference despite mounting evidence his Budget options are narrowing fast.

Polling shows 79 per cent of British voters back a private jet tax to help plug the black hole, with 56 per cent saying the rich do not pay their fair share.