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Two-thirds 'worse off' after Budget

More than two-thirds of Britons believe they will be worse off as a result of this week's Budget, a survey has indicated.

Around 67% of those questioned said they thought the Budget had hit them in the pocket, while 51% said they now felt less confident about their finances, according to price comparison website uSwitch.com.

But 42% said they felt more confident about the UK's finances as a result of the Budget.

One in four people said they felt more confident about the end of the recession following the Budget, although 32% felt less confident. Unsurprisingly, given the scale of some of the cutbacks announced, 29% thought their job was now less secure.

Around 83% planned to change their spending behaviour as a result of the Budget, with 48% saying they would rethink big purchases once VAT is increased to 20%, while 50% will cut back on luxuries.

But one in five claimed they would rush through a big purchase to avoid being caught by the higher rate of VAT next year. Overall, 59% expected the rise in VAT to have a significant impact on their finances.

Just over a third said the freeze in council tax would help them, but 9% said they would be significantly affected by the reduction in child tax credits.

Ann Robinson, director of consumer policy at uSwitch.com, said: "The good news is that consumers believe the Budget has been for the greater good. The bad news is that it has come at great individual cost.

"While it may succeed in tackling the national debt in the long run, consumers are clearly concerned about what it means for them personally in the shorter run."

:: USwitch questioned 1,231 people between June 22 and June 24.

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