As the UK prepares to face another budget next week the mood is pretty bleak. According to Lloyds TSB 55% of the public expect to be worse off after Chancellor George Osborne reveals his budget plans for the next financial year.
Lloyds TSB suggests that consumer spending will remain weak in the next few months as people struggle to survive, adding even more pressure to the wider standing of the British economy.
The British public’s perception of the UK’s general financial situation has got worse, with the percentage of people thinking that the state of the economy is “not at all good” climbing to 43% during February from 39%.
Research by the bank suggests that consumers have the equivalent of £10 or less to spend every month on non-essential items. If this is the case it is easy to see why the economy is suffering.
Essentials such as food and drink have become the biggest strain on household finances and is currently at its’ highest level in months. The cost of food and drink has risen 3.8% year on year.
Hopefully there will be some relief provided by the budget but many aren’t expecting it, and many are worried that any pay rise will be swallowed up by bills.