A survey released on Tuesday showed that UK consumer spending growth in September reached its lowest level in four months, as uncertainty surrounding Chancellor Reeves' upcoming budget announcement and rising energy bills deterred shoppers.

The British Retail Consortium (BRC) reported that consumer spending in stores increased 2.3% year-on-year in September, down from 3.1% growth in August and marking the weakest expansion since May.

Additionally, Barclays data revealed that a broader measure of consumer spending declined in September.

"Rising inflation rates combined with potential tax increases in the budget have affected many households' Christmas spending plans," said Helen Dickinson, CEO of the BRC. According to Barclays' report, debit and credit card spending fell 0.7% year-on-year in September, following a 0.5% increase in August. Essential goods spending dropped 2.6%, marking the fifth consecutive monthly decline. Non-essential goods spending grew just 0.2%, the weakest performance in 15 months.