Blow to chancellor as surveys show budget has hit confidence

Tax rises in the budget have sapped consumer confidence and will lead to sharp reductions in private sector pay growth next year, two separate reports have warned.

- Phillip Inman

In a blow to Rachel Reeves's efforts to boost growth, a survey by S&P Global Market Intelligence showed that consumer confidence dropped this month after households said the outlook for the economy had deteriorated and the prospects for their own finances had worsened.

The consultancy said the government had failed to build on the underlying improvement in consumer sentiment in the months before and after the general election.