Rachel Reeves hit with yet another economy blow as Brits furious | UK | News

Rachel Reeves has suffered another major economic blow as consumer card spending falls ahead of the November Budget. Following a rise in August, consumer confidence in the strength of the UK, European and global economy fell to 25%, 29% and 26% respectively in September (down from 28%, 31% and 28%), according to new data from Barclays. Figures show Brits are reducing their spending, with consumer card spending down -0.7% year-on-year in September.

This is below the 0.5% growth in August and lower than the latest Consumer Price Index, including the homeownership housing costs (CPI) inflation rate of 4.1%. Core spending fell by -2.6% in September for the fifth consecutive month, while growth in discretionary spending fell to 0.2%, the lowest level in the last 15 months.

Due to rising bills and the high cost of living, two in three Brits (64%) say they are trying to spend less on groceries.

This trend is likely to continue, with almost half (46%) of consumers saying they plan to cut non-essential costs, figures show.

The data comes as another setback for the Chancellor, who is due to make his annual financial statement next month. Ms Reeves’ popularity continues to decline after last year’s October Budget; The latest YouGov poll for The Times shows 55% of Brits believe Sir Keir Starmer should sack the Chancellor.

The poll also shows only 16% say he should stay in office; In fact, a majority of Labor voters want Ms Reeves replaced as chancellor; 41% say he should be removed from office and 30% say he should remain in office.

However, Barclays’ report states that consumers’ confidence in their ability to live within their means reached the highest level in the last four years at 78%, while confidence in household finances increased to 74%.

This comes as almost half of UK adults say they have made changes to their personal finances in anticipation of November’s Autumn Budget, with a third of this group building a savings buffer as a backup.

Karen Johnson, Head of Retail at Barclays, said: “It is encouraging to see that UK consumers feel confident about their ability to manage their budgets amid ongoing cost of living concerns. We remain cautious with spending and shoppers are constantly looking for areas where they can cut back. However, while the furniture, clothing and beauty sectors have all continued to grow since February this year, multiple retailers “The category has proven resilient in recent months.”