Budget expected to damage confidence

People in the 50 per cent tax bracket and those at the lower end of the pay scale have expressed concern about the upcoming Budget.

Chancellor George Osborne is due to deliver the Budget next week, but the majority of people are not expecting good news. Indeed, 66 per cent of Britons expect that they will feel less confidence about their finances after hearing the new Budget, with just four per cent expecting to feel more confident, according to a recent survey by uSwitch.

A number of taxes are up for consideration, including the mansion tax on properties worth over £2 million, an increase in the income tax threshold and the rise in fuel duty set for later this year.

uSwitch's research found that 69 per cent of Brits believe that their financial situation has deteriorated under the coalition, while the economic climate is also prompting people to change their habits with 18 per cent saving more, 28 per cent clearing debts and 12 per cent reorganising outstanding ones.

Ann Robinson, director of consumer policy at the comparison site, commented: “Far from creating a sense of hope and optimism, consumers are feeling less confident about their own financial situation and job security as well as the country's finances ahead of next week's Budget announcement.”