Public confidence in the UK economy has taken another hit, with the latest City AM Freshwater Strategy poll showing little hope for the near future.

The polling revealed nearly one in five voters, 18 per cent, could not pay an unexpected £500 bill, categorising them as in “high financial stress”.

35 per cent said their finances were troubled or impacted, compared to 30 per cent who said they were comfortable or confident.

Meanwhile, 33 per cent said they were “just about managing” regarding budgeting and spending each month.

This comes as Capital Economics economist Ashley Webb said on Monday morning that households choosing to save rather than spend was partly responsible for the “stagnating economy”.

Webb predicted the economy would do “little more than flatline at best” in the first quarter of 2025. 

Reeves’ capabilities called into question

Over half of respondents to the City AM Freshwater Strategy poll expect the economic conditions in the UK to worsen in the next year in another hit to public confidence in Chancellor Rachel Reeves.