FX.co ★ UK Consumer Confidence Dips in July

In July 2025, the GfK Consumer Confidence Index for the UK decreased slightly to -19 from June's figure of -18. This dip comes after reaching a six-month high, as households exhibit growing caution due to concerns over potential tax increases and inflation. Neil Bellamy, GfK’s Consumer Insights Director, commented, “The data suggests some individuals might be anticipating challenging conditions ahead.” This sentiment is fueled by increasing speculation about potential tax hikes in the forthcoming Autumn Budget, alongside worries about renewed inflationary pressures. Finance Minister Rachel Reeves is anticipated to implement tax increases for the second consecutive year in her upcoming budget, following Prime Minister Keir Starmer’s decision to overturn previous plans to cut billions from welfare spending. In response to the prevailing uncertainty, households have increased their savings significantly—the GfK Savings Index surged by 7 points to reach +34, marking its highest level since November 2007 and highlighting a trend toward financial caution.