Consumer confidence rose to its highest level in six months in April, a survey showed today.
Chancellor Gordon Brown delivered headline-grabbing cuts to income and company taxes in his 11th and probably final budget last month. He is expected to succeed prime minister Tony Blair later this year.
The GfK NOP consumer confidence barometer picked up to -6 from -8, above expectations for a steady reading. The survey was conducted between March 30th and April 15th. Mr Brown's Budget was on March 21st.
The improvement in confidence is likely to further reinforce the belief that borrowing costs will rise in May to 5.5 per cent, the fourth interest rate hike since August, as the Bank of England seeks to curb record high consumer price inflation.
People are also feeling better about the future of their own finances, with the index measuring how people view personal finances over the next year rising to +11 from +10.
The general economic situation is seen in a better light in the next 12 months, with that index picking up to -18 from -21 - also the highest since October 2006.
The survey found people are also growing more confident in buying expensive items, with the climate for major purchases increasing to +6 from +2.