Brits fear Rachel Reeves’ next Budget will make them worse off
A majority of Britons believe Rachel Reeves’ next Budget will make them worse off while three in four have lost faith in the government’s growth mission, fresh polling reveals.
The Labour government has made growing the UK economy its central mission in government in a bid to claw back support across the electorate.
But the latest monthly City PM/Freshwater Strategy poll shows Labour have a mountain to climb to win the faith of voters on the UK economy.
Most voters (56 per cent) said they expected the economy to worsen in the next year while 74 per cent of Brits say they lacked confidence in the government’s growth plans.
The poll of some 1,250 voters also showed a similar number of Brits – around 57 per cent – expect the Budget to directly harm their personal finances, with the figure rising to 80 per cent among older voters.
The lack of support shown in the polling comes as a damning indictment of the Labour government after a year in office, with trust breaking down between the state and taxpayers.
The drop in confidence among those over 55-year-olds likely reflects fears that Labour will target pension pots and property through changes to lump sum allowances and the tax relief on pensions contributions, which could raise billions of pounds for the Treasury.
Just one in a hundred over 55-year-olds believed they would be better off as a result of the Budget.
Pessimism among Brits has also not subsided, with 43 per cent of respondents expecting to see household finances deteriorate in the next year.
Autumn Budget woes linger
Voters believe Labour’s first year in office has left Brits poorer, according to the survey.
Nearly half of people (48 per cent) said their living standards had worsened in the past 12 months while just 16 per cent said theirs had improved.
Labour remains top for trust on healthcare and house building but support for the government in these areas has crumbled by eight points since September.
Neither policy area is a current voter priority, with reducing immigration and easing the cost of living rising again as the top two key issues.
Chancellor Rachel Reeves has staked her reputation on reducing inflation at this year’s Budget, urging Cabinet ministers to find ways to lower prices for consumers.
Getting inflation down from its current level of 3.8 per cent is essential to reducing borrowing costs for the government, with markets predicting interest rates to be left at four per cent for the rest of the year unless inflation falls at a quicker pace.
Economists have warned that any move to apply VAT to a wider range of goods could see another price rise and deter Bank of England policymakers from voting for further cuts.
Government officials have said a manifesto commitment not to raise VAT “stands”, leaving the door open to a controversial tax hike as part of an effort to plug a fiscal hole in the public finances expected to be worth around £30bn.
Method note: Freshwater Strategy interviewed n=1,251 eligible voters in the UK, aged 18+ online, between 3–5 October 2025. Margin of Error +/- 2.8%. Data are weighted to be representative of UK voters. Freshwater Strategy are members of the British Polling Council and abide by their rules.