Deterioration in Living Standards Perceived by Voters Since Labour Gained Power in the UK, According to Polls
UK Voters Express Concerns Over Living Standards
Almost half of UK voters are concerned that their living standards have taken a hit in the past year, a new poll suggests.
The Labour government, just a few weeks shy of completing a year in power, promised to boost personal finances during their election campaign. But the poll conducted by Freshwater Strategies and City AM indicates that the economic conditions have not improved as anticipated.
Surprisingly, only 14% of voters claimed their living standards improved. On the contrary, nearly 50% believe they will worsen in the coming year, potentially reflecting the impact of the tax hikes introduced in April.
Living on the Edge
The poll reveals that around one in ten voters are in a "troubled" financial state, while one in five would struggle to pay an unexpected £500 bill. These findings hint at a precarious financial situation for many Brits.
Negativity surrounding the personal economic outlook slightly eased since April, yet 43% still anticipate their household finances to decline over the next 12 months.
Business Concerns Amplify
The pessimistic outlook comes amid a challenging economic landscape. More UK firms are expressing concerns about domestic growth as they seek to increase sales abroad.
Approximately one-third of companies surveyed urged the government to ease regulatory burdens and lower taxes, highlighting the need for a more business-friendly environment.
Furthermore, concerns have arisen over trade barriers as nearly two-thirds of firms state that US tariffs threaten their growth.
The government aspires to turn the gloomy sentiment around by announcing a series of policy measures in the following months. The Chancellor, Rachel Reeves, and the Department for Business and Trade are planning to introduce an industrial strategy focusing on lowering energy costs and re-evaluating government spending distribution.
Insight: Tax hikes have been a significant component of the Labour government's economic strategy, aiming to address budget challenges and achieve economic goals. However, these measures have also led to concern among voters and negatively impacted living standards. While the UK economy has experienced temporary growth, ongoing trade tensions and increased costs are expected to persist and influence public opinion and economic well-being.
Source: Freshwater Strategy, City AM poll of 1,250 eligible voters conducted between 9-11 May 2025. Margin of Error ± 2.8%. Data weighted to be representative of UK voters.*
- The tax hikes introduced by the Labour government in April have been a cause of concern for many UK voters, given their potential impact on living standards.
- The poll suggests that one-third of companies in the UK are concerned about domestic growth and are seeking to increase sales abroad, primarily due to regulatory burdens and high taxes.
- The financial situation of many Brits appears precarious, with one in ten voters in a "troubled" state and one in five struggling to afford an unexpected £500 bill, according to the poll.
- As the government aims to address these concerns, the Chancellor, Rachel Reeves, and the Department for Business and Trade have planned to introduce policy measures focusing on lowering energy costs and re-evaluating government spending distribution in the coming months. This includes strategies aimed at addressing the concerns over trade barriers and the impact of US tariffs on UK firms.
