Nearly two-thirds of UK consumers fear the Government’s recently announced policies could ultimately leave their households worse off, while confidence that the plans can be delivered without higher personal taxes remains low, a new study has revealed.

Research from Novuna Personal Finance found 63% of consumers were concerned they could be worse off, while only 30% were confident the Government could deliver its policies without increasing the amount they personally pay in tax.

One in five expected taxes paid by most households to rise, while 16% anticipated higher taxes on wealth or property and 15% expected tax increases to fall mainly on higher earners.

Consumers showed little appetite for paying more, according to Novuna’s Consumer Confidence Tracker. More than a third, 37%, said they would not be willing to pay any additional income tax each month to fund the Government’s policies, while a further 21% would pay less than £10.

Just 7% supported higher taxes on most households, compared with 29% who would prefer policies to be delayed or scaled back or spending cut elsewhere in public services.

Household spending is already under pressure, with 40% cutting back on non-essential purchases, up from 35% in April, while 36% are reducing spending on eating out and socialising and 31% are switching to cheaper brands. The proportion expecting to keep spending tightly controlled over the next three months has also risen from 25% to 34%.

The research, conducted by Censuswide in August as households prepared for the Government’s first Budget in October, found a pronounced generational divide, with 50% of 25 to 34-year-olds confident that the Government could deliver its plans without increasing their personal tax bill, compared with just 19% of over-55s.

Theresa Lindsay, chief marketing officer at Novuna, said: "People want help with the cost of living, but they don’t want today’s giveaway turning into tomorrow’s tax bill. Our research shows people have very little appetite to pay more, and would much rather see the Government scale back its plans or find savings elsewhere.

"That concern comes as spending confidence is already weakening. Since our last survey, more consumers are cutting back, while those expecting to keep spending tightly controlled has risen from 25% to 34%. If higher taxes follow, any boost to confidence could quickly disappear."

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