Tax rises in budget sap UK consumer confidence and will hit pay growth, say reports

Survey shows households’ economic fears, while Goldman Sachs predicts impact of increase in employer NICs

Tax rises in the budget have sapped consumer confidence and will lead to sharp reductions in private sector pay growth next year, two separate reports have said.

In a blow to Rachel Reeves’s efforts to boost growth, a survey by S&P Global Market Intelligence showed that consumer confidence dropped this month after households said the outlook for the economy had deteriorated and the prospects for their own finances had worsened.

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