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Brits fear Budget will push UK back into recession

Joanna Faith
Written By:
Joanna Faith
Posted:
Updated:
22/03/2013

Over a third of consumers believe the UK is more likely to fall into a triple dip recession following this week’s Budget, new research reveals.

Shattering George Osborne’s hopes of an ‘aspirational’ Budget, the report  from comparison site uSwitch.com found almost half (45%) felt worse off following the Chancellor’s statement, .

Despite Osborne’s attempts to appeal to middle England, 37% believed the ‘squeezed middle’ will benefit the least from the proposals, while three quarters (78%) said savers have been forgotten.

Far from easing the pressure on hard-pressed consumers, almost half of Brits (44%) now feel less confident about their finances. In fact, few of the Chancellor’s ‘goodwill’ measures seem to have won over the nation.

Three in ten (29%) are opposed to plans to knock a ‘penny off a pint’ and 31% feel indifferent, while the new childcare tax relief scheme has also failed to impress, with over half (54%) of parents claiming it is ‘too little, too late’. Of these, 21% claimed parents need help now rather than in 2015, and 15% said it will do nothing to help families where one parent doesn’t work.

Despite a lukewarm response to some measures, others have had a better reception. The vast majority of consumers (88%) welcomed the rise in the personal tax allowance to £10,000, while freezing fuel duty has also proved popular with more than nine in ten (91%) Brits.

Michael Ossei, personal finance expert at uSwitch.com, said: “Homebuyers and small businesses may be jumping for joy following this week’s Budget, but most of middle England has been left stuck in the mud. People did not expect much from the Budget but have received even less than they had hoped for. Taking 1p off a pint is not going to cut it for the millions of homes struggling to pay their essential bills every month.

“For many, the Government simply hasn’t done enough to help households cope with spiralling cost of living. What is somewhat depressing is that most consumers don’t feel a change in Government would make any difference to their finances – leaving them feeling trapped in a financial cul-de-sac. But there are always things you can do to help improve your finances, no matter how small. The Budget is an opportunity to step back and review your finances, so that you pay no more than you have to on essential bills.”