UK Consumers Cut Spending amid Economic Decline, KPMG Reports

A recent KPMG survey indicates that UK consumers are increasingly cutting back on spending due to declining confidence in the economy, with 58% believing it is worsening, a 15-point increase since November. Despite a majority feeling financially secure, 43% reported reducing spending on everyday items, while more than a third are saving more as a contingency plan. The survey showed that the number of individuals feeling insecure about their personal finances rose from 21% to 24%, with some resorting to cutting discretionary spending or incurring debt for essentials. This trend comes as Chancellor Rachel Reeves prepares to address economic concerns in her spring statement, against a backdrop of disappointing growth and rising government borrowing. Experts emphasize that the current economic climate is pushing consumers—both secure and insecure—to alter their buying habits in anticipation of future financial pressures. The findings highlight the urgent need for government measures to restore confidence in the economic outlook.