A stark new poll reveals that the majority of British families are preparing for a more expensive Christmas dinner this year, as the combined pressures of high energy costs, persistent inflation, and new government taxes bite into household budgets.
Poll Exposes Widespread Financial Anxiety
The survey, conducted by Savanta for the Liberal Democrats between 5-8 December, found that 55 per cent of UK households believe their festive meal will cost more than it did last year. The research, which interviewed 2,017 UK adults, highlights the ongoing strain of the cost-of-living crisis during what is typically a period of high expenditure.
When asked to identify the reasons behind the expected price hike, most respondents pointed to the cost of energy (58 per cent), followed closely by general inflation (55 per cent). A significant proportion, nearly half (47 per cent), also suspect supermarkets of hiking prices.
Government Tax Policies Under Fire
Notably, the poll indicates that government policy is a direct concern for many consumers. One in five (21 per cent) specifically blamed Government policies for pushing up produce prices, with Labour's so-called 'family farm tax' featuring prominently in responses.
This policy, announced by Chancellor Rachel Reeves in her first Budget, plans to levy a 20 per cent inheritance tax on farmers' assets worth more than £1 million, ending previous exemptions. While ministers claim only farms worth over £3 million might be affected, the National Farmers' Union (NFU) disputes this, arguing government figures show two-thirds of farms could be at risk.
The political divide is clear: nearly a third of those who voted Reform last year blame the Government's tax approach, a figure significantly higher than among Labour or Liberal Democrat supporters. Furthermore, more than a quarter of 18-34-year-olds ranked Labour's tax policies among their top concerns, compared to one in five older people.
Broader Economic Pressures Mount
The concerns extend beyond direct taxation. The energy watchdog confirmed last week that bills are set to rise further, despite Labour shifting some costs to general taxation. Although the party pledged a £300 reduction in energy bills ahead of the election, the energy price cap has actually increased by £190 since they took power. These increases continue even as wholesale gas prices fall, driven by higher grid and policy costs, including green levies.
Meanwhile, inflation has remained stubbornly above the Bank of England's target for several years, with no swift return to the 2 per cent goal in sight. This persistent economic backdrop is feeding into retail prices, with many families sceptical of supermarket motives; nearly half suspect retailers are pushing up prices to protect shareholder profits.
Tim Farron, the Lib Dem environment spokesman, said: 'Labour's tax hikes are hammering family farms and risk pushing up food prices, including the cost of a Christmas dinner. We will oppose these unfair tax hikes tooth and nail.' He warned of a 'rural reckoning at the ballot box in May' unless the family farm tax is axed for good.
The data paints a picture of a nation grappling with layered financial pressures, where the traditional Christmas celebration has become another front in the ongoing battle with the cost of living.
