A potential Burnham backlash is brewing in London, with nearly two-thirds of Londoners (64%) fearing that the Government’s recently announced policies could leave their household worse off, according to new research from Novuna Personal Finance.

Despite these concerns, the second wave of Novuna’s Consumer Confidence Tracker shows that Londoners remain more optimistic than elsewhere about their own finances.

Almost a third (32%) believe the Government can deliver its agenda without increasing the amount they personally pay in tax, while only one in five (20%) expect their financial position to worsen over the next three months.

Theresa Lindsay, Chief Marketing Officer at Novuna, said:

“With Burnham’s focus on the North, there is understandable concern that growth in London could fall down the agenda – particularly as recent figures show the capital has the highest unemployment rate in the country.

“However, Londoners remain relatively optimistic that their personal taxes will not rise under the new Prime Minister’s policy agenda. That is notable at a time when many households are still feeling financial pressure and are cutting back on everyday discretionary spending.”

Londoners draw the line at higher taxes

The research also shows a clear limit to Londoners’ appetite for higher taxes. More than a third (35%) say they would not be willing to pay any additional income tax each month to fund the Government’s policies, while a further 18% would be willing to contribute less than £10 a month.

When asked how they would prefer the Government to raise additional funds, only 8% of Londoners supported increasing taxes on most households. Instead, 16% would prefer to see some policies delayed or scaled back, while another 15% favour cuts elsewhere in public services.

Londoners claw back their spending

Londoners have become noticeably more careful with their money over the course of this year. Four in ten (40%) say they have cut back on non-essential purchases in the past three months, up from 33% in April 2026.

Spending on socialising and eating out has also fallen sharply in London. More than a third (35%) say they are spending less in these areas, compared with 29% in April.

Novuna’s Consumer Confidence Tracker points to growing financial caution among Londoners as 35% now plan to tightly control discretionary spending over the next three months, up from 26% in April. With the weekly food shop still households’ biggest concern, 25% have also scaled back travel and holiday plans this summer.