Rachel Reeves faces new challenges as consumer confidence sharply declines, suggesting tough economic times ahead. Sainsbury’s announced 3,000 job cuts, and Primark reported suffering sales, reflecting a gloomy economic climate. Despite stagnant growth and high inflation, the Prime Minister attended the World Economic Forum in Davos to attract global investment, defending her budget policies. Critics attribute economic struggles to her £25bn national insurance increase, which has alarmed businesses. A recent GFK survey indicates a decrease in consumer confidence for the first time since December 2023, highlighting concerns about the economy and increasing savings among households for safety.
Beleaguered Rachel Reeves has received a new setback as the report shows a sharp downturn in consumer confidence in signs that people are “looking at dark days ahead.”
Supermarket chain Sainsbury’s revealed 3,000 jobs yesterday, but added to the gloom that has gripped the economy earlier this year as cut-price retailer Primark said sales were suffering.
With growth stagnant and inflation high, the prime minister jumped into the World Economic Forum in Davos to try to shore up investment from global bosses.
During the meeting, she reiterated her commitment to growth and taking on regulators that get in the way of business.
But critics say it is her own policies, particularly the £25bn raid on employers’ national insurance that has stunned businesses, that has done the most damage.
Today, a closely watched new survey by data firm GFK reveals that darkness is currently hitting ordinary households. This showed that consumer confidence has declined this month for the first time since December 2023.
Neil Bellamy, director of consumer insights at GFK, said: “The new year is traditionally a time of change, but looking at these numbers, consumers don’t think things are changing for the better.” I did.
Opinion polls reveal a notable toppling in households’ views on the wider economy.
Rachel Reeves (pictured in Davos) has suffered a new setback as signs point to a sharp slump in consumer confidence that people are “looking at dark days ahead.”
Supermarket chain Sainsbury’s yesterday
Primark’s parent company reveals sales setback caused by dark consumer mood since budget
“These figures highlight that consumers are losing confidence in the UK’s economic outlook,” Mr Bellamy said.
There was also a large jump in the savings intention measure.
“This sharp increase is unwelcome as it is another sign that people are considering putting their money aside for safety as they see dark days ahead,” Bellamy added. Ta.
In another blow, a separate report from the Confederation of British Industry (CBI) said the start of 2025 continues to struggle as manufacturers’ optimism settled at its lowest level in more than two years. I discovered that.
“Manufacturers entered the new year in a tough mood. Ben Jones, lead economist at CBI, said: “Manufacturers entered the new year in a tough mood.
At a Wall Street Journal event in Davos, Reeves said the government was “proudly pro-business” once again forced to defend the budget and insisted there was no “serious alternative” to her actions.
“I’m not going to apologize for putting our finances on solid ground,” she said. “It was a necessary budget.”
The Prime Minister said the government was now embarking on reforms to “remove the barriers that have stopped companies from investing in the UK for too long”.
Reeves is currently joining fellow politicians and business leaders at the World Economic Forum in Davos
At a Wall Street Journal event in Davos, Ms. Reeves said the government was “proudly pro-business” once again forced to defend the budget and insisted there were “no serious alternatives” to her actions. .
Charlie Nunn, CEO of Lloyds Banking Group, said many business leaders were “worried about what’s going on”.
Yesterday, the boss of Lloyds Banking Group – Charlie Nun – said: That was really important.
“We have never had a UK economic plan that is in a stable place. But what we will see in the coming months is that they now need to accelerate and they need to come at a pace. That’s what they talked about.
Nun, who is also in Davos, told Bloomberg TV that many business leaders are “worried about what’s going on at the moment.”
The mood on the high street was particularly grim. Ms. Reeves’ knee king is falling particularly hard on big retailers.
Sainsbury’s said a “particularly challenging cost environment” was behind its decision to cut thousands of jobs as it shuts down its remaining cafes and closes its patisserie and pizza counters.
And Primark’s parent company British Foods has revealed a setback in sales caused by a darkening mood among consumers since the Budget.
Finance director Eoin Tonge said: “There is no doubt that we are struggling with weaker consumers, particularly elements of the consumer base that are clearly struggling.”