UK Consumer Confidence Dips in July

The GfK Consumer Confidence Index for the UK edged down to -19 in July 2025 from -18 in June, slipping from a six-month high as households grew increasingly cautious amid rising concerns over taxes and inflation. Neil Bellamy, Consumer Insights Director at GfK, noted: “The data suggests that some people may be sensing stormy conditions ahead.” He pointed to growing speculation over possible tax hikes in the upcoming Autumn Budget and fears of renewed inflationary pressure. Finance Minister Rachel Reeves is expected to raise taxes for a second consecutive year in her next budget, following Prime Minister Keir Starmer’s reversal of earlier plans to cut billions from welfare spending. Amid the uncertainty, households boosted their savings, with the GfK Savings Index jumping 7 points to +34, the highest level since November 2007, reflecting a shift toward financial caution.