Most people believe that they will get poorer over the next year and few believe the Chancellor’s “mini-Budget” will help their finances, according to an exclusive i poll.
The survey carried out last week by BMG found that only households earning £70,000 expect to be made better off as a result of the tax cuts and reforms announced by Kwasi Kwarteng.
Asked about their own household finances, 61 per cent said they had become poorer over the past 12 months and an identical proportion expected their finances to go backwards over the next year. Ten per cent have been better off this year than last, while 12 per cent believe their finances will improve in the near future.
Of those polled, 67 per cent said the fiscal statement’s measures would mainly benefit people with higher incomes or greater wealth, and just 6 per cent thought the poorest would be the biggest gainers.
This view tends to be supported by analysis from think-tanks, which shows the highest earners will gain the most thanks to the abolition of the 45p additional rate of income tax. Liz Truss has argued that economic growth is more important than “redistribution” and insists her plans will boost GDP with a positive knock-on effect for all.
Overall 37 per cent of voters thought the announcements made in the fiscal statement would make them worse off, with 19 per cent predicting it would help their finances.
The impact of the mini-Budget on household finances was seen as a net negative among all income groups expect for those earning at least £70,000, according to the poll.
Jack Curry of BMG said: “The cost of living is a creeping factor lurking in the background of all discussions on the mini-Budget. Remaining by far the biggest single issue for Britons, the last four months have also seen a significant increase in those reporting their household finances as having become worse over the previous 12 months.
“Looking ahead, Britons are also gloomy about the coming year, with expectations around household finances being worse off increasing by the month. While the energy price guarantee will provide immediate relief to households worried about the price cap increase, a large majority of voters actually believe the mini Budget has had a negative effect on the cost of living overall, perhaps reflecting concerns about rising rates of interest wiping out whatever benefits the Budget offered.”
BMG Research interviewed a representative sample of 1,516 GB adults online between 27-29 September. Data are weighted. BMG are members of the British Polling Council and abide by their rules. The majority of fieldwork was conducted on Tuesday 27 September.
It isn’t helping plenty of people I know on over £70k either.
You’ve got to be on well over £100k AND not have high expenses on things that are inflating greatly in price compared with your inflating asset value (i.e. you’ve got to have a property portfolio or some non-UK investments) to be benefiting from this latest Budget.
There’s a double whammy with this. The last few years ive gone a long way to spending as little as possible. Sharing subs w family or friends, 60% of my clothes are 2nd hand, cooking a lot more than eating out, quit drinking.
Most of those things i plan to continue for one reason or another which makes me a lot less useful for the economy. Plus I’ll be saving for an ever larger emergency fund and things like that.
Ive no reason to go back to “1st hand” for a lot of things.
Im “lucky” in a household of 2 earners over median salary with no kids so all we’re really desperate for is a house so we can finally never ever be subjected to landlords ever again.
Are people better or worse off than they would be if they lived in the woods far away from anyone and could hunt, gather, farm and build a shelter?
As someone in that demographic, I say I do not want these tax cuts. Tax me more if anything.
Ridiculous!
Which will see a lot of businesses suffer as people really rein in their spending over the next six months. Pubs, restaurants, cinemas etc. They will all be hit hard as people cannot afford to go out at current prices, let alone pay the inflated prices venues will charge as energy bills go up. Poorer people will lose the ability to enjoy themselves, living a depressing existence as every penny is carefully monitored.
Households earning over 70k better off? With mortgages, energy bills, groceries, lending becoming more expensive. How will this help anyone other than people earning well into 6 figure salaries? Everyone else will be poorer, no doubt about it.
I earn 70k+ and am not that interested in saving a few quid in tax.
I want to see better healthcare, schools, roads, clean beaches etc etc instead.
Even at the 150k top tax rate it’s not like you’re completely insulated from the rest of society, far from it, you’re still a pleb just with a bit more disposable income and a nicer house.
It’s beyond me what anyone earning less than silly money sees in the conservatives
8 comments
Most people believe that they will get poorer over the next year and few believe the Chancellor’s “mini-Budget” will help their finances, according to an exclusive i poll.
The survey carried out last week by BMG found that only households earning £70,000 expect to be made better off as a result of the tax cuts and reforms announced by Kwasi Kwarteng.
Asked about their own household finances, 61 per cent said they had become poorer over the past 12 months and an identical proportion expected their finances to go backwards over the next year. Ten per cent have been better off this year than last, while 12 per cent believe their finances will improve in the near future.
Of those polled, 67 per cent said the fiscal statement’s measures would mainly benefit people with higher incomes or greater wealth, and just 6 per cent thought the poorest would be the biggest gainers.
This view tends to be supported by analysis from think-tanks, which shows the highest earners will gain the most thanks to the abolition of the 45p additional rate of income tax. Liz Truss has argued that economic growth is more important than “redistribution” and insists her plans will boost GDP with a positive knock-on effect for all.
Overall 37 per cent of voters thought the announcements made in the fiscal statement would make them worse off, with 19 per cent predicting it would help their finances.
The impact of the mini-Budget on household finances was seen as a net negative among all income groups expect for those earning at least £70,000, according to the poll.
Jack Curry of BMG said: “The cost of living is a creeping factor lurking in the background of all discussions on the mini-Budget. Remaining by far the biggest single issue for Britons, the last four months have also seen a significant increase in those reporting their household finances as having become worse over the previous 12 months.
“Looking ahead, Britons are also gloomy about the coming year, with expectations around household finances being worse off increasing by the month. While the energy price guarantee will provide immediate relief to households worried about the price cap increase, a large majority of voters actually believe the mini Budget has had a negative effect on the cost of living overall, perhaps reflecting concerns about rising rates of interest wiping out whatever benefits the Budget offered.”
BMG Research interviewed a representative sample of 1,516 GB adults online between 27-29 September. Data are weighted. BMG are members of the British Polling Council and abide by their rules. The majority of fieldwork was conducted on Tuesday 27 September.
It isn’t helping plenty of people I know on over £70k either.
You’ve got to be on well over £100k AND not have high expenses on things that are inflating greatly in price compared with your inflating asset value (i.e. you’ve got to have a property portfolio or some non-UK investments) to be benefiting from this latest Budget.
There’s a double whammy with this. The last few years ive gone a long way to spending as little as possible. Sharing subs w family or friends, 60% of my clothes are 2nd hand, cooking a lot more than eating out, quit drinking.
Most of those things i plan to continue for one reason or another which makes me a lot less useful for the economy. Plus I’ll be saving for an ever larger emergency fund and things like that.
Ive no reason to go back to “1st hand” for a lot of things.
Im “lucky” in a household of 2 earners over median salary with no kids so all we’re really desperate for is a house so we can finally never ever be subjected to landlords ever again.
Are people better or worse off than they would be if they lived in the woods far away from anyone and could hunt, gather, farm and build a shelter?
As someone in that demographic, I say I do not want these tax cuts. Tax me more if anything.
Ridiculous!
Which will see a lot of businesses suffer as people really rein in their spending over the next six months. Pubs, restaurants, cinemas etc. They will all be hit hard as people cannot afford to go out at current prices, let alone pay the inflated prices venues will charge as energy bills go up. Poorer people will lose the ability to enjoy themselves, living a depressing existence as every penny is carefully monitored.
Households earning over 70k better off? With mortgages, energy bills, groceries, lending becoming more expensive. How will this help anyone other than people earning well into 6 figure salaries? Everyone else will be poorer, no doubt about it.
I earn 70k+ and am not that interested in saving a few quid in tax.
I want to see better healthcare, schools, roads, clean beaches etc etc instead.
Even at the 150k top tax rate it’s not like you’re completely insulated from the rest of society, far from it, you’re still a pleb just with a bit more disposable income and a nicer house.
It’s beyond me what anyone earning less than silly money sees in the conservatives