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More desperation than aspiration: over a third of consumers believe budget will push UK back into recession

  • Over a third (35%) of consumers believe the UK is more likely to fall into a triple dip recession following this week’s Budget

  • Almost half (45%) say they will be worse off following the Budget

  • Three quarters (77%) believe savers have been forgotten and 37% believe middle income families will benefit the least

  • 76% of Brits say the Chancellor does not understand the financial fears of ordinary people

  • Three in five (59%) see little reason to toast plans to knock 1p off a pint and over half of parents (54%) say childcare tax relief is ‘too little, too late’

  • 65% of consumers claim their financial situation has got worse since the Coalition came to power in 2010

  • But Brits are pessimistic about a change: 21% think they will be worse off under a Labour Government and 37% don’t think it would make any difference.

Hopes of an ‘aspirational’ Budget have been shattered with consumers fearing for both the economy and their own financial situation, according to new data from Uswitch.com, the independent price comparison and switching service. Over a third (35%) fear the UK is more likely to slip back into a triple dip recession following Wednesday’s announcement and almost half (45%) claim that the Budget will leave them worse off.  Despite the Chancellor’s attempts to appeal to middle England, 37% believe that the ‘squeezed middle’ will benefit the least from his proposals, while three quarters (78%) say savers have been forgotten.

Far from easing the pressure on hard-pressed consumers, almost half of Brits (44%) feel less confident about their finances. In fact, few of the Chancellor’s ‘goodwill’ measures seem to have won over the nation. Three in ten (29%) are opposed to plans to knock a ‘penny off a pint’ and 31% feel indifferent, while the new childcare tax relief scheme has also failed to impress, with over half (54%) of parents claiming it is ‘too little, too late’. Of these, 21% claim parents need help now rather than in 2015, and 15% say it will do nothing to help families where one parent doesn’t work.

But despite a lukewarm response to some measures, others have had a better reception. The vast majority of consumers (88%) welcome the rise in the personal tax allowance to £10,000, while freezing fuel duty has also proved popular with more than nine in ten (91%) Brits. Overall, the Budget has been hailed a ‘triumph’ for business owners and homebuyers. Four in ten (43%) say the Budget will help businesses, while 52% believe first time buyers will benefit the most.

Overall, 65% of consumers claim their financial situation has got worse since David Cameron and the Coalition came to power in 2010 – but very few believe their situation would improve under new leadership. One in five (21%) think they will be worse off under a Labour Government and 37% don’t think it would make difference.

Michael Ossei, personal finance expert at Uswitch.com, says: “Homebuyers and small businesses may be jumping for joy following this week’s Budget, but most of middle England has been left stuck in the mud. People did not expect much from the Budget but have received even less than they had hoped for. Taking 1p off a pint is not going to cut it for the millions of homes struggling to pay their essential bills every month.

“For many, the Government simply hasn’t done enough to help households cope with spiralling cost of living. What is somewhat depressing is that most consumers don’t feel a change in Government would make any difference to their finances – leaving them feeling trapped in a financial cul-de-sac. But there are always things you can do to help improve your finances, no matter how small. The Budget is an opportunity to step back and review your finances, so that you pay no more than you have to on essential bills.”

FOR MORE INFORMATION

Charlotte Nunes

Phone: 020 7148 4664

Email: charlotte.nunes@uswitch.com

Twitter: @uswitchPR

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Uswitch is the UK’s top comparison website for home services switching. Launched in September 2000, we help consumers save money on their gas, electricity, broadband, mobile, TV, and financial services products and get more of what matters to them. Last year we saved consumers over £373 million on their energy bills alone.

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