UK Consumer Confidence Hits New Low Ahead Of Autumn Budget

Ahead of the Autumn Budget this Wednesday, UK consumer confidence has fallen to its lowest level since March, with GfK’s index slipping by one point to -21.

Perceptions of personal finances over the past year have also dropped by one point to -10, while views on the general economic situation over the same period have fallen by five points to -42. Reflecting growing concerns about the forthcoming Budget, Cornerstone Tax, the UK’s leading property tax expert, has released national data showing how many Brits are considering leaving the UK due to the challenging tax and economic climate. This aligns with predictions from the Adam Smith Institute, which anticipates a 20% decline in the number of British millionaires in the UK over the course of this Parliament.

Revealing new societal insights into the material impact of the upcoming Autumn Budget - affecting the economy's most significant growth engines, such as property, pensions, housing and businesses – the research has found that 21% of the nation cite proposed tax increases from the Labour government as a key factor for moving abroad. A further 16% of respondents stated that the Autumn Budget itself serves as the decisive reason for their planned departure.

Analysis from New World Wealth projects that 9,500 millionaires are set to leave the UK during 2024 - the second-largest outflow globally - in anticipation of reported tax plans. However, in addition to the nation's wealthiest residents, new national research from Cornerstone Tax has found that a significant portion of society has expressed deep concerns over potential tax plans and retirement issues, with 32% of the population citing changes in the tax system as the main reason they would leave the UK.

The findings from Cornerstone’s research suggest growing concerns among Brits about the new Labour government and its economic plans for the country. Underscoring the looming crisis of an imminent exodus from Britain, the research has further shown that 23% of Brits are now motivated to relocate their families abroad due to the ongoing cost-of-living crisis.

As 24% of Brits also contemplate relocating their tax residence overseas due to the Labour government's Autumn Budget, Cornerstone is able to provide a unique index of where potential expats are considering their future move to. The most popular destinations for relocation according to Cornerstone’s study are as follows:

- Spain
- Australia
- USA
- Canada
- Dubai
- Portugal
- France
- Malta
- Cyprus