Middle-class homeowners across the UK are postponing their kitchen renovation plans as fears mount over potential tax hikes in the forthcoming October Budget.
The possibility of higher taxes, signalled by shadow chancellor Rachel Reeves, has led to a marked decline in consumer confidence, according to kitchen retailers.
Jamie Everett, co-founder of bespoke kitchen manufacturer Naked Kitchens, noted a sharp drop in orders after a strong start to the year. He said: “In September, it’s like somebody just turned the tap off. The Budget is the big roadblock right now.”
Many customers are adopting a wait-and-see approach, concerned that tax increases could impact their disposable income. Kitchen retailers such as Thomas Matthew in Dorset report that some customers have explicitly stated they are waiting for the Budget before proceeding with orders.
The uncertainty has had a knock-on effect on consumer confidence across the wider home improvement sector. According to GfK’s consumer confidence index, there has been a notable drop in sentiment, plunging seven points in September to -20, indicating that households are feeling less secure about their finances.
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