British consumers’ optimism about the economy and their own finances recorded its sharpest fall this month since April, when many household bills increased and US President Donald Trump announced wide-ranging tariffs on imports from Britain.

The British Retail Consortium, which represents big retailers, said sentiment had been hit by government hints that the main rate of income tax would rise for the first time since the 1970s – an idea which now appears to have been ditched.

“With Christmas fast approaching, public expectations of spending – both on non-food retail goods and across wider spending – fell,” BRC Chief Executive Helen Dickinson said.

  • Net consumer expectations for the UK economy over the next three month fell to -44 per cent from -35 per cent in October, lowest since April and biggest month-to-month fall since April
  • Net consumer expectations for personal finances over the next three months fell to -16 per cent in November from -11 per cent, lowest since April and biggest month-to-month fall since April
  • Survey carried out by Opinium for the BRC from November 4-7
  • Finance minister Rachel Reeves to deliver annual budget on November 26