Consumer confidence took a hit in September as anxiety grew ahead of next month’s Budget, according to a new survey.

The British Retail Consortium’s (BRC) latest consumer sentiment monitor, which tracks expectations for the coming three months, highlighted deepening concerns over both the national economy and personal financial situations.

The survey revealed that individuals’ perceptions of their personal finances plunged from a rating of 1 in August to -6 in September. Confidence in the broader economy dropped even further, declining from -8 to -21 over the same period.

Despite the gloom surrounding economic sentiment, personal spending on retail showed a slight increase, inching up one point to -8. However, overall personal spending dipped slightly, with the index falling to 10.

The BRC pointed to growing uncertainty surrounding the upcoming Budget as a key driver of this shaken consumer confidence. Chancellor Rachel Reeves is scheduled to present the Budget to Parliament on 30 October, amid mounting concerns over a projected £22 billion gap in the public finances.

Prime Minister Keir Starmer had previously warned in August that the Budget would be “painful,” heightening public apprehension. Since then, the government has continued to emphasize the significant challenges facing the UK’s finances.

Helen Dickinson, chief executive of the BRC, voiced concern over the potential impact on retailers. "Retailers could face a turbulent few months," she said. "Negative publicity surrounding the state of the UK’s finances appears to have damaged confidence in the economic outlook, particularly among older generations."

Dickinson also stressed the importance of the forthcoming Budget in restoring confidence. "The Budget is a key opportunity to inject some confidence back into the economy, boosting spending and helping to foster much-needed investment in businesses."

The survey, conducted by Opinium, gathered responses from 2,000 UK adults between 10 and 13 September. While both Reeves and Starmer have recently adopted a more optimistic tone, their efforts to reassure the public followed the period during which the survey was carried out.