Public confidence `crumbles` ahead of emergency Budget
Chancellor George Osborne will deliver his first Budget on June 22nd.
Tuesday, 15, Jun 2010 09:56
By myfinances.co.uk staff
Britons have been filled with "deficit dread" ahead of next week's emergency Budget, with 49% of consumers, or around 24 million people, saying they feel worse off financially than ever before.
According to a poll by uSwitch.com, 18% of adults are already using borrowing to cover everyday costs, while 14% are struggling to meet debt repayments.
One in five were worried about job security and another 49% said they have seen their pay frozen.
Against this backdrop, 61% of respondents said an increase in VAT was their biggest fear for George Osborne's first Budget as chancellor on June 22nd.
If the duty were to rise, 51% would rethink major purchases and 26% would cut back on food spending.
Elsewhere, 42% were worried that Budget measures would lead to higher interest rates and 33% were concerned about salaries stagnating.
Ann Robinson, uSwitch.com director of consumer policy, said: "Rather than continuing to plug the hole by borrowing, consumers need to work harder to strip down their essential bills to the bare minimum. This is crunch time for UK households."