The Budget

28/11/2017

Last week the Chancellor of the Exchequer announced the new Autumn Budget, in relation to the economic and social climate of the UK – but what does this mean to consumers and how much attention to detail do they give the budget? Dentsu Aegis Network went to the research panel to find out.

Autumn Budget
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Are you aware of the budget announcement?

  • 82% of respondents were aware of the budget announcement
  • 95% of respondents aged 65+ were aware of the announcement – this group had the highest awareness

 

What is your level of understanding of the budget and what it means for the UK?

  • 19% of total respondents reported to have little understanding of the budget, whilst 33% have a clear understanding of the budget
  • Nearly half of respondents, at 49%, suggested they had neither a high or low level of understanding

 

How positive/negative do you feel about the latest budget announcements?

  • Of all respondents, 34% felt negatively about the budget announcement whilst 17% reported to be positive about the announcement
  • Just 3% of all respondents reported to feel very positive about the 2017 budget
  • Whilst 14% of all respondents felt somewhat positive about the latest announcement

 

How has your confidence in the UK economy changed as a result of the Autumn budget?

  • 29% of respondents reported to feel less confident whilst 11% claimed to feel more confident as a result of the announcement
  • The majority of respondents, at 56%, felt no change in confidence
  • 11% of those aged 25-44 claimed to feel a little more confident, this decreased to 9% of those aged 45-64 and decreased again to 6% for those aged 65+
  • Similarly, 13% of respondents aged 25-44 reported to feel a lot less confident, this increased to 17% for those aged 45-64 and decreased back to 13% for respondents aged 65+

 

Do you think the government’s abolition of the stamp-duty for first-time buyers up to £300k will help to make it more accessible for people to get on the property ladder?

  • Of all respondents 33% agreed that this would make it easier
  • By age, 29% of respondents aged 25-44, 36% of respondents aged 45-64 and 35% of respondents aged 65+ agreed that the abolition of stamp duty would make the property ladder more accessible for first-time buyers

 

“The Office for Budget Responsibility (OBR) now expects the economy to grow by 1.5% this year down from the estimate of 2% it made in March.” How does this effect your confidence in the economy long term?

Considering all responses:

  • 17% now plan to save more money
  • 3% plan to spend more money
  • 68% stated that this would not affect their spending or saving plans
  • Whilst 12% didn’t know the affect this would have on their spending or saving plans

In terms of age we can see that:

  • Respondents aged 25-44 were the highest age group planning to save more money at 27%, followed by 10% of respondents aged 45-64 and 3% of respondents aged 65+
  • In terms of spend, 3% of respondents aged 25-44 now plan to spend more money, whilst 1% of respondents aged 45-64 and 2% of those aged 65+ are now considering upping their spending
  • 89% of respondents aged 65+ report that they are not planning any changes to their spending or saving, whilst 54% of those aged 25-44 suggest the budget wont impact on their spending and saving plans

 

“As expected, today’s Budget confirmed that the state pension will increase by 3 per cent next April from £159.55 to at least £164.37 giving pensioners an annual rise of £250.” What impact will this have on pension planning?

Of all respondents:

  • 45% will not review their pension options
  • 12% of respondents will review their pension options to ensure they’re on the best plan
  • 24% of respondents didn’t know what impact this would have on their pension plans
  • 19% of total respondents are already retired

By age, we see:

  • 18% of those aged 25-44 plan to review their pension options, followed by 9% of those aged 45-64 and 2% of those aged 65+
  • 51% of those aged 25-44 and 45-64 are not making plans to review their pension. Whilst 9% of the 65+ age group are not planning to review their pension plan in light of the Autumn Budget

 

The responses shared here from our panel are early reactions to this Autumn’s Budget; where any major changes come into effect as a result of the Autumn Budget we will head back to our panel to find out more about how they understand the change and its consequent impact.

As always, we’ll keep you up to date with the latest trends from the financial sector.

Autumn Budget
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