𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

The depth of worry about the state of the economy is laid bare in new polling in which voters delivering a damning verdict on Sir Keir Starmer’s Government. More than eight out of 10 people (82%) now say the economy is in a bad state – a 10-point surge since the end of February. The scale of anxiety has triggered calls for Labour to take immediate and bold action to address the cost of living.

Expectations of higher motoring fuel costs have surged 13 points since October last year to 71%. The share of people expecting higher interest rates has soared by 16% since then to 56%. Nearly nine out of 10 people (89%) are concerned about the impact of the cost of living over the next six months on the country as a whole. Almost as many (86%) are braced for an increase in the cost of their food shopping, with 79% expecting a hike in the price of utilities. The same amount anticipate an increase in inflation over the next year, with two-thirds braced for higher taxes.

More than half (53%) expect their disposable income to fall over the next 12 months, with 36% thinking their standard of living will decline. The share of people who think think Sir Keir’s Government is doing a good at managing the cost of living is just 13% – down from 19% in November 2024.

Shadow Chancellor Sir Mel Stride insisted action could be taken right away to ease living costs.

He said: “Families are already feeling squeezed and global instability is driving further uncertainty, with inflation set to rise. Instead of supporting British families, Rachel Reeves is hitting taxpayers’ pockets through fuel duty hikes, frozen tax thresholds, and green levies to fund spiralling welfare spending. We must axe the fuel tax hike, ditch the net zero dogma and drill in the North Sea. Only the Conservatives have a clear plan, and the backbone, for the tough decisions needed to deliver a stronger economy and stronger country.”

Reform UK narrowly came in top place (26%) when people were asked which party they trusted a “great deal” or a “fair amount” to reduce the cost of living, ahead of Labour (25%) the Greens (24%) and the Liberal Democrats and the Conservatives (both 21%).

The only crumb of comfort for Labour is that voters are more likely to blame the rising cost of living on the US-Israel-Iran conflict (79%), the state of the global economy (76%) and the Russian invasion of Ukraine (66%) than the party’s economic policies in government (64%). More people blamed businesses making excessive profits (63%) than Brexit (61%), with President Trump’s tariffs cited as a factor by 59%. Fewer than half (44%) blamed net zero policies to combat climate change, with only 37% mentioning workers asking for excessive pay rises.

A Treasury spokesperson said: “We have the right economic plan for a more volatile world, taking a responsible approach to supporting working people in the national interest. We’re taking £150 off energy bills, fuel duty is frozen until September and we’re providing targeted support for those facing higher heating oil costs. We’re also acting to protect people from unfair price rises if they occur, bring down food prices at the till, as well as freezing rail fares and prescription fees.”