Budget 2026: Consumer confidence tumbles as Healey urged to slow ‘tsunami of costs’

John Healey has been urged to tackle the “tsunami of costs” facing firms as consumer confidence tumbled ahead of the crucial Budget next week. Brits’ confidence in the state of the economy worsened from -32 to -40 in October, according to the British Retail Consortium (BRC)’s index, marking the third consecutive month of deteriorating sentiment. Growing fears of inflation and rising interest rates are combining to worsen consumer attitudes ahead of the Chancellor’s first budget, prompting businesses to warn that they cannot encourage spending any more without tax cuts.  Consumers’ net expectation of the state of their personal finances over the next three months worsened from -15 to -18 this month the second-lowest level on record. Brits’ spending expectations rose sharply in October, from a net reading of five to 15. Consumers would have already planned to spend more during the run-up to Christmas but rising inflation has worsened this outlook, the BRC said. Consume