The proportion of people who believe the economy is in a bad state has risen 10 points since February 2025 to 82%, while 89% are concerned about the cost of living over the next six months. Economic pessimism has reached depths not seen since 1978, multiple reports indicate.
Specific price increases are widely expected: 71% anticipate higher motoring fuel costs (up 13 points since October 2024), 56% expect higher interest rates (up 16%), 86% foresee a rise in food shopping costs, 79% expect utility price hikes, and two-thirds predict higher taxes.
Disposable income expectations are bleak, with 53% expecting their income to fall over the next 12 months, and 36% thinking their standard of living will decline. Only 13% believe the government is managing the cost of living well, down from 19% in November 2024.
When asked whom they trust to reduce the cost of living, Reform UK came top at 26%, followed by Labour (25%), Greens (24%), and Liberal Democrats and Conservatives (both 21%). Blame is spread across multiple factors: 79% blame the US-Israel-Iran conflict, 76% the global economy, 66% the Russian invasion of Ukraine, 64% Labour’s economic policies, 63% excessive business profits, 61% Brexit, 59% President Trump’s tariffs, and 44% net zero policies. Shadow Chancellor Sir Mel Stride said: “Families are already feeling squeezed and global instability is driving further uncertainty, with inflation set to rise. Instead of supporting British families, Rachel Reeves is hitting taxpayers' pockets through fuel duty hikes, frozen tax thresholds, and green levies to fund spiralling welfare spending. We must axe the fuel tax hike, ditch the net zero dogma and drill in the North Sea. Only the Conservatives have a clear plan, and the backbone, for the tough decisions needed to deliver a stronger economy and stronger country.”