New polling indicates that two-thirds of Britons express pessimism about the future of the UK economy, with 70 per cent anticipating tax hikes in Chancellor John Healey’s upcoming Budget, reports BritPanorama.
Healey is preparing to deliver the first Budget of Prime Minister Andy Burnham’s government on Wednesday, amid pressure to balance the nation’s finances while addressing military spending and funding commitments made by the PM.
Polling conducted by Ipsos reveals that 70 per cent of respondents believe it is likely that personal taxes will rise over the next year. Additionally, two-thirds expect the nation’s economic conditions to worsen, with only 14 per cent optimistic about improvement.
Furthermore, 67 per cent of those surveyed think Labour will increase government borrowing and national debt, while 51 per cent foresee an uptick in spending on public services.
Alex Bogdan, Ipsos’s research director, noted that the survey reflects widespread economic anxiety, stating, “Ahead of John Healey’s first Budget, Britons remain troubled, with nearly two-thirds expecting the national economy to worsen.” She highlighted the need for keeping inflation low as critical for growth.
Despite strong support for the NHS, the public appears resistant to broad personal tax increases, favouring targeted measures for high earners instead. Bogdan added, “As Westminster navigates demanding fiscal constraints, addressing deep-seated cost-of-living concerns remains central to maintaining voter confidence.”
Healey is expected to announce proposals around 12.30pm on Wednesday in the Commons, following Prime Minister’s Questions. A significant challenge will be outlining how to fund £5bn in defence spending previously announced in the Defence Investment Plan without a clear funding strategy.
With an increasing focus on living costs, Burnham has introduced measures designed to aid individuals and businesses during this economic period. This includes plans to reform the Carers’ Allowance structure to better support unpaid carers.
The upcoming Budget represents a critical moment for both Healey and Burnham, as they seek to navigate public expectations and fiscal realities in a challenging economic environment.
