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2025-12-13 13:31:39
[Tax Uncertainty Weighs on UK Economy, Consumer Confidence Drags Down Retail Sales] ⑴ Latest data shows that the UK economy contracted by 0.1% month-on-month in October, continuing the downward trend since the summer. Market analysts believe that the uncertainty surrounding the fiscal budget is one of the dragging factors. ⑵ London pub owner Steve Om's observations confirm this, stating that consumption slowed significantly before the budget announcement, with people "tightening their purse strings" as they awaited potential adjustments to personal income tax. ⑶ Analysis points out that the economic slowdown is partly due to specific industry issues such as the continued production disruptions at Jaguar Land Rover, but the uncertainty surrounding Chancellor Reeves' budget has indeed played a significant role. ⑷ Currently, it is the traditional Western holiday shopping season, which is usually a golden period for the retail industry. However, against the backdrop of high tax burdens and future policy uncertainty, consumers have become more frugal and cautious in their spending. ⑸ Industry insiders believe that the retail industry is facing a challenging period, and the recovery of consumer confidence will depend on the clarity of future fiscal policies and changes in personal disposable income.
