A poll has found that 38 per cent of voters think their household finances will get worse in the coming year

Confidence in the economy has dropped sharply amid signs that people are worrying about their family finances in the year ahead.

Only 11 per cent of voters think that their financial situation will improve over the coming year, down from 21 per cent in December 2015, according to the annual YouGov poll for The Times on the state of the economy. The poll also found that 38 per cent of voters think their household finances will get worse in the coming year — the most pessimistic figure since the general election.

Until now consumer confidence has held up strongly, with the latest GDP figures finding continued growth in consumer-focused industries. However the KPMG/Ipsos Retail Think Tank has predicted that retail growth will stagnate next year,