Brits brace for tax hikes and financial gloom ahead of 2026 election

Household budgets are under siege as taxes climb and pessimism spreads. Will Labour’s promises ease fears before the critical May vote?

, and Administrator

2026 January 14 . 5:37 AM

1 min read

The image shows a poster with a drawing of a person standing in the center, surrounded by barrels... — The image shows a poster with a drawing of a person standing in the center, surrounded by barrels and other objects. At the bottom of the poster is text that reads "The Free-Born Briton or a Perspective of Taxation".

Brits brace for tax hikes and financial gloom ahead of 2026 election

British voters are facing growing concerns over finances as 2026 approaches. A new poll reveals widespread pessimism about household budgets, taxes, and the cost of living. Many also doubt whether Prime Minister Keir Starmer will remain in office by the end of that year.

The latest survey shows 77% of Brits expect tax increases in 2026. This follows a series of tax rises under Chancellor Rachel Reeves, who has overseen the largest tax hikes since the Second World War. In 2024, further tax adjustments were signalled, while 2025 brought cuts to welfare support.

Voters are particularly worried about the economic impact of these changes. Eighty-four per cent believe higher taxes could damage the UK’s financial recovery. Meanwhile, 66% feel gloomy about their personal finances, with 71% pessimistic about the cost of living in the coming year. Labour strategists are now prioritising communication on living costs ahead of key May elections. The cost of living remains the top issue for voters, overshadowing other political concerns. Despite this, a majority think Starmer is unlikely to stay in power beyond 2026.

The findings highlight deep unease over economic pressures in the next two years. With taxes set to rise and living costs a major worry, public confidence appears shaky. Labour’s focus on addressing these issues will be critical in the run-up to the elections.