UK Consumers in a Polycrisis: Economic outlook is poor, but many have their attention elsewhere
The outlook on the UK economy seemed brighter at the start of the year, but now more than half (57%) say the economy is on the wrong track, compared to 43% who believe it is moving in the right direction. The improvement in sentiment we saw in Q1 has quickly reversed.
At the heart of this unease is the simple fact that consumers aren’t feeling the benefit of lower interest rates or a softer inflationary environment. With only 18% reporting their finances are improving, households remain cautious. As the Bank of England has cut interest rates four times this year—bringing the base rate down to 4%—the benefits have not flowed through to households. Inflation, which had fallen to 2.6%, has ticked back up to 3.8%, and the Bank’s forecast now places 2025 inflation at 4%. Combined with slowing GDP growth—down to 0.3% in Q2 from 0.7% in the first quarter—consumer confidence remains fragile.
So, it is no surprise that 38% of consumers want fixing the UK economy to be the government’s top priority in the next 12 months, and one in three still see it as the main issue even looking three to five years ahead. But here’s the important nuance: while the economy dominates in the short term, people’s concerns stretch well beyond GDP.
What does this mean for brands?
Don’t assume easing macro indicators mean people feel better off. Messaging that focuses only on “green shoots” risks sounding tone-deaf. Instead, emphasise affordability, reliability and tangible everyday value—showing you understand the lived experience, not just the headline stats.
Beyond GDP: Wider Priorities
When asked what else the government should prioritise, consumers highlight three areas that stand out clearly:
Healthcare: One in four consumers say fixing the healthcare system should be the top priority over the next five years, and three-quarters believe it is the national government’s responsibility to deliver improvements. The pressure on the NHS is not new, but consumers are increasingly linking healthcare capacity and performance to their overall sense of national resilience.
Sustainability: 58% believe that the UK government or UK businesses have the greatest opportunity to tackle climate change, while a further 22% look to international organisations and global leaders. What this shows is that consumers don’t see climate as an abstract or distant issue—it sits alongside the economy and healthcare as a defining priority.
Community support: Here, responsibility is more distributed: 43% look to local government, 29% to national government, and 16% to local community initiatives. The emphasis is on a shared responsibility, with consumers recognising that resilience must be built from the ground up as well as emanate further from the centre.
Healthcare, sustainability and community support are all now competing with the economy as top priorities. For instance, 58% believe UK government or businesses, and 42% say they would react positively if government prioritised sustainability and community over GDP growth.
Brands, pay attention to the opportunity: This is an opening to demonstrate leadership beyond commercial performance. Whether through reducing environmental impact, supporting local resilience or contributing to healthier lifestyles, brands that align with these consumer priorities can build trust and cut through.
Stressed Lives, Rising Expectations
Economic fragility doesn’t exist in isolation. It sits on top of lives already marked by stress, busyness and uncertainty. As we explored in our recent study on Corporate Reputation, consumers are navigating a daily reality of exhaustion while also facing uncertainty about the future. A striking 68% of people say they cannot imagine what the world will look like in 2035.
This atmosphere of uncertainty shapes how businesses are perceived. Our Corporate Reputation data shows that 56 companies saw their reputations decline this year, reflecting growing consumer scepticism towards organisations seen as purely commercial or self-serving. When household finances are under strain, there is less tolerance for companies perceived to be prioritising profits over people.
What can brands do to help? Consumers are craving reassurance and stability. Simplifying choices, reducing friction and offering practical support that eases day-to-day stress can deliver outsized reputational benefits. In times of uncertainty, even small actions that make life feel more manageable will be noticed and rewarded.
The Takeaway: Beyond the Transaction
Yes, the cost-of-living crisis and economic turbulence remain pressing and painful. But consumers are also telling us that healthcare, sustainability and community resilience are issues that can truly move the dial. This is where trust can be rebuilt, and where both government and business can demonstrate their value.
For government, the implication is clear: Whilst government spending power is restricted by weak GDP, the insights reveal that by reviewing and reallocating budgets to turn up the dial on initiatives that focus on peoples’ health and wellbeing, the benefits of sustainability and community resilience will shift the paradigm from economic hardship to small but meaningful changes.
For businesses, the challenge is different but no less urgent. Competing on price alone is neither sustainable nor reputationally rewarding. Consumers want to see value that extends beyond the transaction:
Supporting local communities.
Driving environmental sustainability.
Investing in employee wellbeing.
Acting with fairness and transparency.
Leading ethically in difficult times.
How brands can turn insights into action: The opportunity is to step in where government action can feel distant or slow—helping people live healthier, more sustainable and more manageable lives. Those who do will not only protect reputation in tough times but also create the conditions for long-term trust.
The data tells a simple story: consumers want the economy fixed, yes—but they also want something bigger. They want systems and behaviours that make daily life more liveable, communities more resilient and the future more hopeful.
The Harris Poll UK, A Stagwell Company, is a leading market research company that provides some of the UK’s best-loved brands with game-changing insights. We utilise a combination of proprietary software and advisory services to deliver data insights via custom service models. We help our clients make informed decisions based on our in-depth industry expertise and our continual exploration of evolving consumer needs and priorities. We know that when a company’s Business Strategy and Customer Strategy are one and the same, their brand and their employees are better placed to succeed.
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