Shock poll shows zero per cent think UK economy in 'very good state' in major blow for Rachel Reeves

A YouGov survey commissioned ahead of the fiscal event on November 26 found that a shocking 0 per cent of the public felt the British economy was in "a very good state".

Only four per cent of respondents believe that the UK's economy was in "a fairly good state" in a further blow for the Government.

In contrast, a whopping 79 per cent said the economy was in a "fairly bad" or "very bad" state.

The damning poll also asked voters to rate the Government's job of managing the economy.

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In a poor indictment of Labour's economic record, only one per cent of the public saw them as doing "very well" at handling Britain's finances.

However, 13 per cent, did say they thought Labour were handling economic matters "fairly well".

But these figures were dwarfed by those critical of Labour.

And 38 per cent rated their record as having done "fairly badly" with 39 per cent saying Rachel Reeves and Sir Keir Starmer were doing "very badly" at managing the economy.

The gloomy outlook comes despite the rate of Consumer Prices Index (CPI) inflation falling to 3.6 per cent in October, from 3.8 per cent in September.

The announcement, made on Wednesday, marks the lowest CPI rate since June this year, but above the 3.5 per cent that most economists were forecasting for the month.

A slower increase in gas and electricity prices was the biggest factor putting downward pressure on the overall inflation rate in October, the ONS said.

Despite the low confidence, Sir Keir remained tightlipped over the measures coming in next week's Budget at Prime Minister's Questions on Wednesday.

Asked at PMQs by Kemi Badenoch to ‘come clean’ over whether Labour would freeze income tax thresholds, Sir Keir refused to be drawn on the contents of next week’s Budget.

He said: “The Budget is actually next week, but I can tell her it will be a Labour Budget with Labour values, that means we will focus on cutting NHS waiting lists, cutting debt and cutting the cost of living.”

“This is the first Budget to unravel before it’s even delivered,” Mrs Badenoch said.

“When the Chancellor made that promise to unfreeze the thresholds, it wasn’t an off-the-cuff comment.

“She said it on the floor of this House in her Budget speech. That was a deliberate statement of Government policy.

“So if she breaks such a clear promise, how can the public trust a word she says next week?” She added.

Nearly 500,000 in London and the South East face being dragged into paying the higher rate of income tax if the Chancellor extends the six-year freeze on thresholds by a further two years to 2029/30.

It is widely expected that a so-called mansion tax will be introduced in the Budget.

Hitting London and the South East hardest, it is believed the tax could be imposted on homes worth more than £2m, potentially with a one per cent levy on the value above this level of the properties.

It would leave owners of properties worth £2.5 million having to pay an extra £5,000 a year in tax, or just over £400 monthly, while a £3 million home would owe HMRC around £10,000 annually, or close to £800 a month.

Some reports suggest that Ms Reeves may even target properties worth over £1.5 million, which would mean tens of thousands more homes in London being caught by her latest tax grab.

Other Budget measures could include a more hefty bank levy, restrictions on pension salary sacrifice schemes, a new road levy for electric vehicles, and limits on a salary sacrifice scheme for cyclists to buy bikes.