Brits confidence in European economy outpaces UK as Budget fears grow
Brits have admitted to having more confidence in the strength of the European and global economy than the UK as Budget fears consume the country.
Fresh Barclays research has revealed Brits confidence in the European economy has ranked above the UK for the tenth consecutive month.
Of the 2,000 surveyed, 22 per cent had faith in the strength of the UK, whereas 28 per cent were confident in Europe’s economic standing.
The figure marks a ten-month low for UK economic confidence and the widest gap between Europe and the UK for seven months.
It comes as Brits brace for a hefty tax raid in the forthcoming Autumn Budget, with Chancellor Rachel Reeves expecting to be staring down a £30bn black hole in public finances.
Labour ran its 2024 election campaign on a key pledge to unleash economic growth across the country, but thus efforts have remained sluggish.
The UK grew 0.3 per cent in the second-quarter. Comparatively, Spain grew 0.7 per cent and France 0.3 per cent whilst Germany contracted 0.3 per cent and Italy 0.1 per cent.
Brits brace for Budget tax hikes
Third-quarter growth figures will be revealed by the Office for National Statistics (ONS) on 13 November, with analysts pencilling in a mere 0.2 per cent growth.
The new figures will come amid mounting speculation that Reeves will break her manifesto pledge with a hike to income tax when she takes to the dispatch box on 26 November.
Julien Lafargue, chief market strategist at Barclays Private Bank and Wealth Management, said: “Consumers and businesses alike appear to have adopted a ‘wait and see’ approach ahead of the Autumn Budget.
“While this is generating some short-term headwinds, it could position the UK economy for a rebound once the uncertainty lifts, potentially setting the stage for a strong festive season.”
The pressure on Brits also comes amid the crunch of ‘shrinkflation’ where consumers notice shrinking goods and rising prices.
Over two-thirds said they had been impacted by shrinkflation with festive food and drinks getting smaller but costing the same.
Businesses across the UK have admitted to being forced to hike prices in the last months in a bid to battle rising costs after Rachel Reeves lumped firms with a hefty rise to employment costs in the 2024 Autumn Budget.
The Chancellor hiked employers’ national insurance 1.2 per cent to 15 per cent in a £25bn raid on UK firms.
The minimum wage was also raised to £12.21 per hour, which came into effect April 2025, handing businesses a double costs blow.