The fiscal warnings coincided with a sharp drop in confidence among employers about hiring in August, according to data released on Thursday by the Recruitment and Employment Confederation. Figures from the British Retail Consortium separately showed the net balance of households expecting the economy to deteriorate over the next three months almost tripled in September.
A fresh round of UK economic indicators are bolstering arguments that the Labour government’s efforts to prepare the public for a tough budget next month have backfired on sentiment.
Two surveys released on Thursday underscored the concerns being felt by consumers and businesses about the prospect of tax hikes and spending cuts to close what Chancellor of the Exchequer Rachel Reeves has said is a “black hole” in the public finances. Part of that effort was a headline-grabbing decision to cut winter fuel subsidies for about 10 million pensioners.
