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Uk Public Increasingly Pessimistic On Economy, Poll Finds

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Britons are taking an increasingly pessimistic view of the economy, with a third worrying more about losing their job than they did three months ago, according to new research.

The survey, to be published by the Association of British Insurers, says the number of people who think the economic situation has worsened over the past 12 months rose to 45% between April and June, from 40% in the first quarter. The survey, in which almost 3,000 adults were polled between 18 and 20 May, is the first snapshot of the public's views on the economy since the new coalition government took office.

The prospect of drastic public sector cuts, to be set out by George Osborne in his first budget tomorrow, are likely to have contributed to people's increasingly gloomy views on the economy. The new government's rhetoric may be adding to people's fears: Osborne warned on Sunday that the country was on the "road to ruin" unless all parts of society played their part in tackling the record £155bn budget deficit. Britain's 6 million public sector workers face a wave of job losses and pay freezes.

According to the ABI poll nearly 40% of people expect the economy to deteriorate over the next 12 months, a 13% increase on the first quarter.

While the UK officially came out of recession at the end of last year, many people have yet to see a tangible improvement in their fortunes. Thousands are still losing their jobs every month and the unemployment rate has climbed to 7.9%. Dismissal or redundancy is the most common reason why people become unemployed, cited by a third.

A third now worry about being made unemployed. Nearly two-thirds said they would cope badly financially if they lost their jobs.

Given the continued economic uncertainty, consumers have become more cautious in their spending and are choosing to pay off debt rather than take on more borrowing. More than a fifth said they had started paying off their mortgages or were paying them off more quickly – up from 12% in the first quarter. For people without a mortgage, the proportion of those paying off their debts climbed to 32% from 30%.

However, low interest rates are putting people off saving, with four-in-10 not putting aside enough for their old age. About 7.7 million – 27% of working adults – are not saving at all for a pension and a further 4 million, or 14%, are investing in a pension but not enough to provide an adequate income in retirement. "Many people will end up in long-term impoverishment," said Malcolm Tarling, an ABI spokesman. "People will be encouraged to save where employers play their part. We need to promote more of a savings culture in this country."

Clearly not enough VI ramping.

We need more happy clappy stories to convince the public.

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  • 428 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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