UK consumer confidence crashes to three-year low as job fears and rate rise dread grip Britons ahead of Budget

From the Newshound archive · first published 21 September 2026.

Job insecurity has hit its worst level in three and a half years, with consumer confidence slumping to 42.7 in September, well below the neutral 50 mark. The S&P Global survey of 1,500 households found more than half now expect the Bank of England to raise interest rates, while retail workers reported the sharpest anxiety of any sector. Early optimism about Andy Burnham's government has evaporated quickly, with 200,000 jobs axed since Labour took power and average two-year fixed mortgage rates climbing to 5.88%.

Households are running down savings at a rapid pace while relying more heavily on credit to cover rising daily costs.

Chancellor John Healey faces the damaging figures days before his Budget, where economists expect further tax rises to plug a ballooning borrowing gap.

City analysts blamed Labour's 'total incompetence' for draining confidence, warning that Budget tax rumours have instilled fear across all income tiers.