Consumers get the 'Budget blues'

Date: 25th June 2010

Small businesses operating in the UK's retail sector could be set to suffer a backlash from the emergency Budget.

According to a recent survey, 27 per cent of Britons will now be cutting back on their retail spending and 51 per cent are now less confident about their finances.

The research, conducted by comparison website uSwitch, also revealed that 33 million people believe they are now worse off than they were before the Budget was announced.

However, a number of people believe new measures to be introduced will reduce the country's deficit, with 42 per cent feeling more confident about the UK's finances.

Ann Robinson, director of consumer policy at uSwitch.com, said: "While it may succeed in tackling the national debt in the long run, consumers are clearly concerned about what it means for them personally in the shorter run.

"Once the VAT hike takes effect, consumers will be cutting back on luxuries, and even necessities like food. The government has bought itself some time, but come January it could be facing double jeopardy."

Posted by Jacob Williams