UK living standards have worsened since Labour took power, voters say
Nearly half of UK voters believe that living standards have deteriorated over the last 12 months, a new poll has suggested.
The Labour government is approaching a full year in office in a matter of weeks after an electoral campaign in which it promised to boost people’s personal finances.
But a new poll by Freshwater Strategies and City PM has suggested that voters have not seen an improvement in the UK economy, with many fearing the worst is yet to come.
Research showed that just 14 per cent of UK voters polled said their living standards had improved.
Nearly 50 per cent of UK voters believe living standards will worsen in the next year, suggesting that the British public remain worried after tax hikes were introduced in April.
Chancellor Rachel Reeves launched tax raids on private schools, inheritance and people’s investments via a rise to capital gains taxes, squeezing budgets and lowering financial prospects for millions of Brits.
Tax rises on businesses through higher employers’ National Insurance contributions came into effect in April, slowing down hiring and putting pressure on profits.
The ripple effects of the government’s economic agenda appears to have weighed on people’s confidence over the health of their personal finances.
Around one in ten voters said they were in a “troubled” financial state while one in five voters would not be able to pay an unexpected £500 bill, according to the Freshwater Strategies/City PM poll of 1,250 eligible voters.
Negativity around UK voters’ personal economic outlook eased slightly compared to April but 43 per cent of respondents claimed their household finances would be worse off in the next 12 months.
Living standards and low business confidence combine
The poll of UK voters came against a bleak economic backdrop, with more UK firms raising concerns about stagnant growth domestically since a growing number of companies looked to sell products overseas, according to fresh data.
The low confidence around the UK economy reflected in data showing around a third of firms calling for the government to reduce regulatory burdens and cut taxes, as mentioned in a Santander poll of more than 1,000 companies.
Hopes of a boost in international trade ran against worries over trade barriers being erected given nearly two thirds of UK companies said US tariffs threatened their growth, the Santander survey also said.
The government hopes it can overturn the despondent mood felt among UK voters through a series of policy announcements in the next few months.
Reeves and the Department for Business and Trade are set to roll out an industrial strategy that will aim to lower energy costs while a spending review will re-consider how government spending is spread out across different areas of the economy.
Method note: Freshwater Strategy interviewed n=1,250 eligible voters in the UK, aged 18+ online, between 9-11 May 2025. Margin of Error +/- 2.8%. Data are weighted to be representative of UK voters.