Consumer verdict on Budget makes grim reading
Latest Which? polling, following the 2012 Budget today, has found the majority of consumers (73 per cent) expect little or no improvement in their household finances over the next 12 months as a result of the measures announced today. One in three said the Budget leaves them less confident that they will be able to pay for day-to-day essentials. Sixty four per cent say their confidence in the economy is unchanged or worsened.
Our immediate post-Budget polling found:
- 64% of people have said the Budget has either decreased or made no difference to their confidence that the economy will improve over the next 12 months.
- While 46% thought the Budget would be good for the country as a whole, 60% said they felt the Budget would make no difference or be worse for their own family
- The majority of consumers (73%) expect little or no improvement in their household finances over the next 12 months
- One in three people said, for the UK as a whole, they expect things to keep getting worse and they cannot see them getting better
- 81% of people said the Budget has made no difference or has left them feeling less confident in their ability to pay for day-to-day essentials (e.g. food, energy bills etc)
- Consumer confidence on spending remains low, with 63% saying the Budget made ‘no difference’ to their willingness to make large purchases (ie. TVs, washing machines, holidays)
The poll also found strong support for a rise in the personal tax allowance (92%) and a new level of stamp duty of 7% for those buying properties worth more than £2 million (77%). While people were less positive of the impact of the Budget for them and their family, they were more positive about the impact of the Budget on the UK as a whole (46%).
Which? executive director, Richard Lloyd said:
“Our analysis makes grim reading with the majority of people feeling that things will either stay the same or continue to get worse both for the country and their family over the next year.
“We know consumer confidence is already low, with many people struggling to make ends meet, putting off major purchases, cancelling holidays and spending their savings on everyday essentials, a trend that looks set to continue.
“Based on what we are hearing from consumers, this is a Budget that is unlikely to get people spending anytime soon.”
Notes to Editor
1. Full findings below
2. METHODOLOGY: Which? commissioned Populus to interview 2,083 GB adults online onthe 21st March 2012. Results have been weighted to be representative of all GB adults. Populus is a member of the British Polling Council and abides by its rules. For more information see www.populus.co.uk Note that Q1 (level of support for individual measures) excludes the (small numbers) of ‘don’t knows’ and ‘not applicable’.
FULL FINDINGS
LEVEL OF SUPPORT FOR OVERALL MEASURES (IN ORDER OF HIGHEST TO LOWEST SUPPORT)
A rise in the personal tax allowance to £9,205 in April
- Support (strongly + tend to) 92%
- No feelings either way 5%
- Oppose (tend to + strongly) 3%
A new level of stamp duty of 7% for those buying properties worth more than £2 million
- Support (strongly + tend to) 77%
- No feelings either way 18%
- Oppose (tend to + strongly) 5%
An immediate rise in tobacco duty by 5% above inflation (the equivalent of 37p per pack of cigarettes)
- Support (strongly + tend to) 68%
- No feelings either way 11%
- Oppose (tend to + strongly) 20%
A change in the plans to reduce Child Benefit, raising the threshold so the cuts will only partly effect those who earn over £50,000 and fully effect those earning over £60,000
- Support (strongly + tend to) 64%
- No feelings either way 17%
- Oppose (tend to + strongly) 19%
No change in fuel duty
- Support (strongly + tend to) 51%
- No feelings either way 13%
- Oppose (tend to + strongly) 36%
A reduction in the 50% tax rate for those earning over £150,000 to 45% from next year
- Support (strongly + tend to) 34%
- No feelings either way 19%
- Oppose (tend to + strongly) 46%
VIEWS HOW GOOD/BAD THE BUDGET IS FOR THE UK AS A WHOLE
- Good (very good+fairly) 46%
- Neither good/nor bad 30%
- Bad (fairly bad + very) 20%
VIEWS HOW GOOD/BAD THE BUDGET IS FOR THEM/THEIR FAMILY PERSONALLY
- Good (very good + fairly) 39%
- Neither good/nor bad 41%
- Bad (fairly bad + very) 19%
IMPACT OF BUDGET ON CONFIDENCE IN… (IN ORDER OF CONFIDENCE HIGHEST TO LOWEST)
The economy overall in the next 12 months
- More confident (lot more + little more) 33%
- No difference 39%
- Less confident (little less + lot less) 25%
Life in the UK in the next 12 months
- More confident (lot more + little more) 29%
- No difference 40%
- Less confident (little less + lot less) 29%
Your household finances overall for the next 12 months
- More confident (lot more + little more) 26%
- No difference 44%
- Less confident (little less + lot less) 29%
Paying for the day-to-day essentials (e.g. food, energy bills etc) for the next 12 months
- More confident (lot more + little more) 18%
- No difference 50%
- Less confident (little less + lot less) 31%
Spending on bigger ticket items (e.g. washing machines, TV, holidays) for the next 12 months
- More confident (lot more + little more) 8%
- No difference 63%
- Less confident (little less + lot less) 27%
IMPACT OF BUDGET ON ECONOMIC SENTIMENT – CLOSEST VIEW TO THEIR OWN
For the UK as a whole
- Things continue to get worse but I can see them getting better in future (44%)
- Things just keep getting worse and I can’t see them getting better (30%)
- The worst is now behind us and things are starting to get better (19%)
- d/k 8%
For you and your family personally
- Things continue to get worse but I can see them getting better in future (38%)
- Things just keep getting worse and I can’t see them getting better (28%)
- The worst is now behind us and things are starting to get better (25%)
Press Release: Consumer, Energy, Financial services, Food, Fuel, Mortgage, Personal Finance