“Rising fuel and utility prices, higher borrowing costs and the fear of tax rises in the budget are taking a bigger toll on households,” Paul Dales, chief UK economist at Capital Economics, said. “This supports our view that both real consumer spending and real GDP will grind to a halt in the fourth quarter and first quarter of 2027. This fall in consumer confidence is also the kind of thing that makes the prime minister less likely to call an early election soon,” Dales said.