Overview
This briefing paper is based on results from the 11th wave of the abrdn Financial Fairness Tracker, a periodic cross-sectional survey commissioned by the abrdn Financial Fairness Trust. The survey has been tracking the financial situation of UK households since the start of the coronavirus pandemic in early 2020, providing an overview of households’ income, spending, borrowings, savings, quality of life and perceptions of key policy-related matters. Data was collected from nearly 6,000 households in November 2024 via Opinium’s politically- and nationally-representative sample and then analysed by researchers at the University of Bristol’s Personal Finance Research Centre (PFRC).
This briefing paper focuses on questions asked about the 2024 Autumn Budget and its financial implications for households. The survey was sent out just a few days after the Budget took place on 30th October 2024.
This briefing paper focuses on questions asked about the 2024 Autumn Budget and its financial implications for households. The survey was sent out just a few days after the Budget took place on 30th October 2024.
Key findings
• Over half (57%) of UK households believe that the Chancellor’s Budget will leave them worse-off over the next 12 months. Just one-in-ten (10%) think it will leave them better-off, while around a third (32%) don’t think it will impact them noticeably.
• Older households were significantly more negative about the Budget’s impact on them. Three-quarters (76%) of over 70s believe the Budget will leave them worse-off, compared with just a third (36%) of under 30s and around half (51%) of all working age respondents.
• Despite some negativity about the financial impact of the Budget, those surveyed were twice as likely to say that the tax rises announced were ‘necessary’ for improving public services (48%) than ‘unnecessary’ (24%). Even among those who expect to be left worse-off by the Budget; they were more likely to say the tax rises were necessary (41%) than not (32%).
• The public were largely supportive of the Government’s decisions to: leave VAT, income tax and employee National Insurance contributions (NICs) unchanged (52% net support); raise taxes on tobacco and vaping (49%); and cancel the planned rise in fuel duty (47%). They were, however, more likely to oppose the increase in employer NICs (-9% net support) and the tightening of various inheritance tax rules (-22%).
• Four-in-five (80%) show some willingness to support further tax rises if needed, with support being highest for so-called ‘sin’ taxes (e.g. tobacco, vaping, gambling) (59%) and wealth taxes (53%). More were opposed to any further rises in inheritance tax (42% oppose), vehicles/fuel taxes (49%), income taxes (52%), consumption taxes, such as VAT (54%) and council tax (59%).
• Other legislation and spending policies – such as raising the National Living Wage (63% net support) and providing more free breakfast clubs (54%) – were largely supported by the public, except for the decision to means test the Winter Fuel Payment (-26%) and raise the cap on bus fares in England from £2 to £3 (-29%).
• Older households were significantly more negative about the Budget’s impact on them. Three-quarters (76%) of over 70s believe the Budget will leave them worse-off, compared with just a third (36%) of under 30s and around half (51%) of all working age respondents.
• Despite some negativity about the financial impact of the Budget, those surveyed were twice as likely to say that the tax rises announced were ‘necessary’ for improving public services (48%) than ‘unnecessary’ (24%). Even among those who expect to be left worse-off by the Budget; they were more likely to say the tax rises were necessary (41%) than not (32%).
• The public were largely supportive of the Government’s decisions to: leave VAT, income tax and employee National Insurance contributions (NICs) unchanged (52% net support); raise taxes on tobacco and vaping (49%); and cancel the planned rise in fuel duty (47%). They were, however, more likely to oppose the increase in employer NICs (-9% net support) and the tightening of various inheritance tax rules (-22%).
• Four-in-five (80%) show some willingness to support further tax rises if needed, with support being highest for so-called ‘sin’ taxes (e.g. tobacco, vaping, gambling) (59%) and wealth taxes (53%). More were opposed to any further rises in inheritance tax (42% oppose), vehicles/fuel taxes (49%), income taxes (52%), consumption taxes, such as VAT (54%) and council tax (59%).
• Other legislation and spending policies – such as raising the National Living Wage (63% net support) and providing more free breakfast clubs (54%) – were largely supported by the public, except for the decision to means test the Winter Fuel Payment (-26%) and raise the cap on bus fares in England from £2 to £3 (-29%).
About the research
This analysis is based on data taken from an Opinium survey of 5,804 UK adults. It was commissioned by abrdn Financial Fairness Trust for its Financial Fairness Tracker series, conducted between 4-13 November 2024. The sample for the research is designed to be representative of the UK adult population across a range of socio-economic groups and of differing political views.
This data has been further broken down and analysed by the Personal Finance Research Centre (University of Bristol), with the focus of the Financial Fairness Tracker being those who are responsible (solely or jointly) for their household finances. This is the 11th wave of the survey.
Further reading