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Story perspectives

UK Household Spending Drops as Consumer Confidence Wanes

12/30/2025

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Summary

Story summary

Household spending in the United Kingdom fell 0.2% in 2025, according to Barclays.
Labour's tax increases have weakened consumer confidence and contributed to the spending decline.
In 2024, spending grew 1.6%, after 4.1% in 2023.
A KPMG survey found two-thirds of Britons believe the economy is worsening.
Card spending has not kept pace with inflation, which is 3.2%.

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Story summary

Household spending in the United Kingdom fell 0.2% in 2025, according to Barclays.
Labour's tax increases have weakened consumer confidence and contributed to the spending decline.
In 2024, spending grew 1.6%, after 4.1% in 2023.
A KPMG survey found two-thirds of Britons believe the economy is worsening.
Card spending has not kept pace with inflation, which is 3.2%.