Every week, we pull together the most relevant stories for your personal finances.

Summary

💬 UK consumer confidence has fallen again ahead of the Budget - what the surveys show and what to consider if your finances feel squeezed

🧾 Frozen tax thresholds are pulling more people into higher tax bands - what to check before the Budget on 28 October

🎁 Tech prices are rising, which could push up the cost of popular Christmas gifts - what to think about before you buy

🗣️ This week we asked a financial expert: Money feels tight and Christmas is coming - what should I consider to keep my spending under control?

💬 UK consumer confidence has fallen again ahead of the Budget as cost of living pressures bite

Surveys published this week show households are becoming more pessimistic about their finances. The British Retail Consortium (BRC) and Opinium survey, carried out in October, found that people's expectations for the economy over the next three months fell to -40 from -34 in September. The BRC says this puts personal finance sentiment at the second-lowest level on record. The reports point to rising inflation, geopolitical tensions and cost of living pressures, with the Budget on 28 October.

🤔 What this means for you

Surveys like this measure how people feel rather than what is happening to your own finances, so they are a snapshot of the mood rather than a forecast. But if you feel the pressure too, you're far from alone, and there are some practical things worth considering. One is getting a clear picture of what comes in and goes out each month, and splitting your spending into essentials and things you could flex if you needed to.

Another is looking at regular bills and subscriptions to check you're still using and getting value from them. It's also worth thinking about whether you have a small cushion for unexpected costs, even if it's only a few weeks of essentials.

With the Budget tomorrow, it can be tempting to make changes in advance. It's often worth waiting until announcements are confirmed before making any big money decisions based on speculation alone.

‍Worth knowing:

The BRC survey is a snapshot from the first part of October, and confidence can move quickly after the Budget.

‍Feeling the squeeze on your finances? A Bippit financial expert can help you get a clear picture of your monthly spending and build a small cushion for unexpected costs.

🧾 Frozen tax thresholds are pulling more people into higher tax bands, the day before the Budget

The income tax bands have been frozen since 2022/23, and the Government has extended the freeze until April 2031. That means the personal allowance stays at £12,570, higher-rate tax still starts at £50,270 and additional-rate tax at £125,140, even as pay rises. This is known as fiscal drag. Forecasts from the Office for Budget Responsibility (OBR) suggest 5.2 million more people will start paying income tax between 2022/23 and 2030/31, 4.8 million more will be pulled into the higher-rate band and 600,000 more into the additional-rate band.

HMRC also estimates that more than 2 million people will be caught in the "60% tax trap" in 2026/27. This applies to income between £100,000 and £125,140, where the personal allowance is reduced by £1 for every £2 earned above £100,000.

🤔 What this means for you

You don't need to do anything for fiscal drag to apply. A pay rise that only keeps up with prices can still leave you paying a larger share of your income in tax, and it could tip part of your pay into a higher band. As an illustration, someone earning £55,000 pays 40% tax on the £4,730 of income above £50,270. If that £4,730 went into a pension, the tax relief would be worth around £1,890.

If your income is close to a threshold, there are a few things worth considering. One is whether paying more into your pension would bring your taxable income down, either through your employer's salary sacrifice scheme or by making personal contributions.

Pension money is locked away until the minimum pension age, which rises from 55 to 57 in 2028, and it's worth checking your annual allowance. Another is whether your employer offers other salary sacrifice benefits that reduce taxable pay.

It's also worth looking at how you use your tax-free allowances, such as your ISA allowance, your personal savings allowance (£1,000 for basic-rate taxpayers, £500 for higher-rate taxpayers and nothing for additional-rate taxpayers) and your capital gains tax allowance. If your income is near £100,000, the effective rate on the next slice can be much higher than it looks, and you could also lose support such as the 30 free childcare hours, so it's worth understanding exactly where you stand.

‍Worth knowing:

The Budget could change the tax system, and nothing is confirmed until it's announced. The bands above apply in England, Wales and Northern Ireland, and Scotland has different rates and thresholds. The OBR figures are forecasts, not certainties.

🎁 Tech prices are rising, which could make some popular Christmas gifts more expensive

Which? says tech prices have risen notably in 2026, and its experts don't expect them to fall soon. The main cause is a global shortage of RAM, the memory chips that almost every computer, phone and console needs. Demand from AI companies and new data centres has outpaced supply, and prices of other components, such as storage drives, are rising too. Games consoles have gone up by between £24 and £170 this year depending on the model, and one major phone maker has raised prices by £100 across its range, including older and refurbished models.

🤔 What this means for you

Phones, tablets, laptops and consoles are all popular gifts at Christmas, so these rises could stretch a festive budget further than you expect. It's worth looking at prices earlier than usual, and asking whether the gift needs to be the latest model. Older models released before the price rises, refurbished devices and accessories can cost noticeably less.

Which? says laptops and phones are among the hardest hit, while its experts also say that if you need a device, waiting is unlikely to make it cheaper. Black Friday sales are worth watching, but there's no guarantee that deals will match previous years.

If you're thinking of buying a phone on a monthly contract, it's worth adding up the total cost over the full term rather than just looking at the monthly price. Splitting the handset and SIM costs lets you compare the total with buying the phone outright and choosing a SIM-only deal separately. If you're considering interest-free credit, it only helps if you're confident you can clear the balance within the interest-free period.

‍Not sure how to pay for a big purchase? A Bippit financial expert can help you weigh up paying upfront, a contract or credit, and plan a Christmas budget that works for you.

Ask a financial expert

"Money feels tight and Christmas is coming - what should I consider to keep my spending under control?"

It's a good question to ask, and you're not on your own. Many people feel the same way at this time of year, particularly when prices have been rising.

A good starting point is to work out what Christmas could cost in total, not just the gifts. Food and drink, travel, social events and decorations can all add up. Writing down a rough figure for each, and a total you're comfortable with, can make it easier to stay on track. It's also worth thinking about who you're buying for and whether there are places to scale back, such as a smaller budget for each person, or agreeing on a gift limit with family and friends.

How you pay matters too. Paying from savings or money you set aside each month avoids carrying a balance into the new year, while buying on credit can make the costs linger after the festive season. If you do use credit, it's worth thinking about how and when you would clear it, and whether any interest-free period is long enough. Tech prices have risen this year, so if there are devices on your list, it's worth looking at prices early and considering whether an older, refurbished or less expensive model would do the job.

It's also worth keeping some money back for January, when bills and expenses carry on. If you're struggling to keep up with payments, free and impartial guidance is available from MoneyHelper. A Bippit expert can also help you think through these questions for your own situation.

Questions (to ask your financial expert)

How do I find out whether frozen tax thresholds are affecting me, and what should I think about if I'm close to a higher-rate band?

What should I think about before making any money decisions ahead of the Budget?

I'm thinking of buying a new phone or laptop - what should I consider when choosing between paying upfront, a contract or credit?