FOUR in ten Brits are adjusting their finances in anticipation of the Budget, new polling shows.
Findings show around a third of people in this group are making cutbacks to reduce spending and another third are building up a savings cushion.
It comes as Rachel Reeves has indicated that she will break her manifesto pledge not to raise income tax within weeks hitting take-home pay.
The survey from Barclays revealed the final third say they are holding off making any major financial decisions until after November 26.
Two thousand people were polled by the bank for their consumer and economic confidence tracker last month.
It found that in all seven areas measured for the bank fell for the first time since August 2022.
Consumer confidence fell in areas such as household finances, job security and strength of the UK economy.
Confidence levels in household finances saw the biggest drop from 74 per cent in September to 63 per cent for last month.
Blame was levelled at the cost of living and a general pessimistic outlook for the next 12 months along with inflation getting ahead of wages.
The polling from Barclays also found that confidence in job security and purchasing non-essential items hit their lowest point since 2023.
Just over one in four people say they have been putting money aside to spend during the Black Friday and Christmas sales period.
The survey also revealed that nearly six in ten, some 57 per cent, were spending more on groceries compared to last year.
It comes as the British Retail Consortium says food inflation could hit 6 per cent by the end of the year.
Julien Lafargue, Chief Market Strategist, Barclays Private Bank and Wealth Management, said: “Consumers and businesses alike appear to have adopted a ‘wait and see’ approach ahead of the Autumn Budget.
“While this is generating some short-term headwinds, it could position the UK economy for a rebound once the uncertainty lifts, potentially setting the stage for a strong festive season.”
Karen Johnson, Head of Retail at Barclays, said: “Looking ahead to the Autumn Budget, consumers are taking a considered approach to spending.
“While confidence declined in October, we’re seeing resilience within categories linked to health and wellbeing, suggesting people are still willing to invest in the areas that matter most to them.
“With Black Friday and Christmas on the horizon, we expect spending patterns to shift again as shoppers seek out value and seasonal offers.”
