British consumers are increasingly feeling the strain from higher taxes as the United Kingdom’s economic momentum slows, with recent data pointing to tightening household budgets and subdued confidence.

A series of tax increases introduced over the past year, including higher national insurance contributions and frozen income tax thresholds, have reduced disposable income at a time when wage growth is easing and price pressures, while lower than their peak, remain elevated.

Official figures and business surveys indicate that consumer spending has softened in recent months, particularly on non-essential goods and services.

Retailers and service providers report more cautious behaviour among shoppers, who are prioritising essentials and cutting back on discretionary purchases.

Economists say the combined effect of higher taxes and slower growth is weighing on demand, limiting the economy’s ability to regain stronger traction after a period of stagnation.

The slowdown has sharpened political debate over fiscal policy.

Supporters of the current approach argue that tax measures are necessary to stabilise public finances after years of heavy borrowing and to restore credibility with financial markets.

Others contend that the burden on households risks deepening the slowdown and undermining confidence, calling for targeted relief to support lower and middle-income earners.

As the government balances fiscal discipline with the need to support growth, households are bracing for a challenging period.

Analysts warn that unless economic activity picks up or tax pressures ease, consumer sentiment is likely to remain fragile, with implications for broader economic performance in the months ahead.