With the UK economy facing fresh trade threats and public spending under strain, households may feel the impact as market jitters persist, and interest payments rise. Chancellor Reeves has been criticised by her rival Sir Mel Stride MP, who accused her of “economic mismanagement” and warned that “families will pay the price”. The Shadow Chancellor said: “Britain now has the third-highest deficit and the fourth-highest debt burden in Europe, with borrowing costs among the highest in the developed world.”

“Under Rachel Reeves’s economic mismanagement and Keir Starmer’s weak leadership, our public finances have become dangerously exposed — vulnerable to future shocks, welfare spending rising unsustainably, taxes rising to record highs and crippling levels of debt interest.” Stride warned: “Labour’s recklessness risks it all — your pension, your job, your savings, your home.”

Mortgage arrears jumped to £22.1billion in the final quarter of 2024,according to the Bank of England, marking an 8.4 per cent increase compared to 2023. New arrears accounted for more than 12 per cent of all outstanding mortgage balances. UK Finance reported 2,030 property repossessions that took place in the first quarter of 2025, including 1,220 homeowners and 810 buy-to-let cases. Ministry of Justice (MoJ) figures revealed mortgage possession claims rose by 31 per cent year-on-year.