New research reveals that three quarters of British voters believe the country is heading in the wrong direction, marking the highest level of public pessimism recorded this year.
Record Levels of Economic Gloom
A City AM/Freshwater Strategy poll conducted in November 2025 shows that 76 per cent of Britons feel pessimistic about the nation's future direction. This represents the most negative public sentiment since polling began in January 2025.
Only 19 per cent of respondents expressed confidence that the UK is moving in the right direction, highlighting a significant crisis of public confidence.
The deepening gloom comes as unemployment reaches its highest level since the pandemic, while borrowing costs remain elevated and fears grow about potential tax increases for workers in the upcoming Autumn Budget.
Household Finances Under Pressure
The survey reveals particularly concerning trends regarding personal finances and living standards. 59 per cent of Britons expect the UK economy to deteriorate further, representing a three percentage point increase since early October.
When it comes to household finances, the outlook is even bleaker. 48 per cent of respondents anticipate their financial situation will worsen, compared to just 20 per cent who expect improvement.
More than half of those surveyed (53 per cent) believe living standards will decline over the next year, reflecting growing anxiety about the ongoing cost of living crisis.
Budget Concerns and Policy Responses
The polling data emerges ahead of a difficult Autumn Budget, where families, savers and pensioners face potential tax increases. The rising cost of living has emerged as the single most concerning issue for voters across the country.
Chancellor Rachel Reeves has identified controlling inflation as a key priority for the upcoming budget. There are rumours that VAT could be removed from household energy bills, alongside other measures designed to ease financial pressure on households.
The Institute for Public Policy Research (IPPR), a left-leaning think tank with connections to Labour officials, has proposed several interventions. These include implementing pro-consumer regulations to combat shrinkflation - where companies reduce product sizes without adjusting prices.
The IPPR's report recommends forcing companies to add clear labelling to shame companies that mislead consumers, and requiring smaller convenience stores to stock cheaper non-branded alternatives. Researchers have also suggested government subsidies for electricity costs.
Meanwhile, business leaders highlight their own financial challenges. Jane Gratton, deputy director of public policy at the British Chambers of Commerce, pointed to sky-high employment costs that have squeezed company profits. This comes as official data shows wage growth excluding bonuses remains strong at 4.6 per cent.
The combination of public pessimism, economic pressures and budget uncertainty creates a challenging environment for both policymakers and British households as winter approaches.
