‘The grinch won’t be stealing Christmas because Rachel Reeves already has’:

Rachel Reeves was accused of ‘stealing Christmas’ yesterday after the Budget left households the gloomiest in two years about the outlook for their personal finances.

A closely-watched monthly poll revealed that the mood among consumers has darkened as they run low on cash, turn increasingly to borrowing, and worry about the jobs market.

The consumer sentiment index by financial firm S&P Global, compiled at the start of this month, provides ‘an early snapshot of the impact of November’s autumn Budget’.

Its overall reading was the lowest since April while sentiment towards the financial outlook over the coming 12 months soured to the gloomiest in in two years.

The poll also pointed to ‘a further marked reduction in cash available to spend and a rising need to take on more debt’ as well as wavering confidence in the jobs market.

It suggested that, after months of speculation hit sentiment and damaged growth in the run-up to the Budget, there has been little improvement since.

The figures were the first indicator of household confidence since Reeves’s Budget

Tory business spokesman Andrew Griffith said: ‘This festive season, the grinch won’t be stealing Christmas because Rachel Reeves already has.

‘Her budget had the longest and most miserable build-up in recent memory – and yet she still managed to make it even worse than anyone expected.

‘With tax hikes on working people and businesses to pay for a welfare splurge, it is little wonder confidence has slumped and families are fretting about their finances. Similarly, if you tax and regulate the life out of employers, it is no surprise the job market is on its knees.’

Maryam Baluch, economist at S&P Global Market Intelligence, said: ‘The first indicator of household confidence since the Autumn Budget makes for disappointing reading.

‘Overall, the combination of subdued household confidence and early signs of job insecurity underscores the ongoing challenges facing UK households as they navigate an uncertain economic environment at the turn of the year.

‘Not surprisingly, spending intentions have worsened in this deteriorating financial environment, suggesting consumers are unlikely to provide much of a boost to the economy as we head into 2026.’

The findings underline the sense of stagnation facing Britain, coming days after official figures showed that the economy shrank in October – the second monthly contraction in a row.

Meanwhile, unemployment has hit 5 per cent, the highest level in four years.

Official figures published on Tuesday are expected to show it ticking higher to 5.1 per cent.

Consumers are also being squeezed by stubbornly high inflation. Figures on Wednesday are expected to show it dipping from 3.6 per cent to 3.5 per cent – still well above the 2 per cent target set by the Bank of England.

Rachel Reeves’s Budget last month has done little to brighten the gloom with a series of tax raids bringing the total tax hit since Labour took office to a record £68 billion.