Britain gripped by ‘Budget anxiety’ as millions fear cost-of-living and tax hikes
Anxiety levels among both consumers and small businesses have surged to record highs ahead of this month’s Autumn Budget, with new research revealing that fear of tax rises, inheritance rule changes and the cost of living are weighing heavily on the public mood.
A survey of 2,000 consumers and 500 local business owners found that almost two-thirds of respondents said they felt more anxious about the upcoming Budget than in any previous year. More than half admitted to cutting spending, delaying financial decisions or turning to drink more frequently as a way of coping with uncertainty.
Among households, the cost of living remained the most pressing concern, followed closely by fears over potential inheritance tax changes. Thirty-eight per cent said they were specifically worried about losing existing reliefs, while others cited mortgage costs and energy bills as their primary source of stress. One respondent, a 34-year-old from London, said she had begun “having more wine at home” despite trying to save, adding: “It’s like my brain knows I shouldn’t, but I can’t stop thinking about what’s coming.”
Business owners painted a similar picture of unease. Fifty-six per cent said they were concerned about tax, with nearly half expressing anxiety over inheritance tax and pensions policy. Many reported putting off hiring or expansion plans until after the Chancellor delivers her statement on 26 November. “It feels like we’re standing still until we know what he’s going to do,” said one owner of a Midlands-based engineering firm.
Michael Williams, treatment manager at Abbington House, said the figures reflected a wider pattern of stress behaviour triggered by financial uncertainty. “We’re seeing more people reporting disrupted sleep, increased alcohol use and avoidance of key decisions,” he said. “The Budget may be an abstract political event, but its psychological impact is real. People are feeling powerless, and that’s translating into anxiety.”
Researchers said the findings highlighted how political anticipation alone can alter public behaviour. Nearly a third of consumers admitted they were deferring major financial choices such as switching insurance or energy providers until after the Budget, while a quarter of business owners said they had already frozen marketing or training budgets.
Economists warn that this level of hesitation could have broader consequences. When households and firms pause spending simultaneously, local economies stall. “If the Budget delivers stability, we may see a quick rebound in confidence,” said one financial analyst. “But if there’s another shock, such as a change to inheritance tax or corporate reliefs, the anxiety we’re seeing now could deepen.”
With the Chancellor, Rachel Reeves, expected to address both cost-of-living support and long-term fiscal rules later this month, the survey paints a picture of a country holding its breath. Whether relief or disappointment follows may depend less on the numbers in her speech and more on whether she can convince the nation that the worst is behind it.