Consumer confidence weakened significantly this month amid growing speculation about tax rises in the Budget next week.
Figures from the British Retail Consortium (BRC) show the measure of confidence in the state of the economy dropped to -44 in November, down from -35 in October.
Meanwhile, the personal financial situation score worsened to -16 in November, down from -11 in October with with the spending on retail figure slowing from +18 to +14.
Their personal saving rose to -5 in November, up from -9 in October.
Helen Dickinson, Chief Executive of the British Retail Consortium, said, “It has been a tumultuous month of Budget speculation and consumer confidence took a tumble.
"Strong hints by government earlier this month of income tax rises heightened public concern about their own finances and the wider economy, though government has since rowed back.
"With Christmas fast approaching, public expectations of spending – both on non-food retail goods and across wider spending – fell.
"Though expected spending on groceries did rise to its highest level since the survey began in 2024 as households prepare for Christmas during a period of high food price inflation.
“The Chancellor needs a few rabbits from the Budget hat next week to bolster weak consumer and business confidence – both essential for economic growth.
"Delivering on her promised business rates reforms and helping bring down the spiralling cost burden facing retailers will keep price rises in check and revive the fortunes of many struggling high streets.
"After decades of retail and hospitality paying the lion’s share of business rates, there is finally an opportunity to turn this broken tax into one that encourages local investment and supports local jobs.”