Spending on travel agencies exceeded spending in most sectors in the UK last month, as British consumers are in a period of cuts in anticipation of the budget announcement on November 26.
Travel agency expenses increased by 7.2% in October this year compared to the same month last year, with a 28.5% increase in transactions. The recovery of travel agency spending from just 0.8% in September was a response to consumer demand for financial protection when booking holidays, according to the latest card spending data compiled by Barclays.
The growth rate exceeded only specialty retail stores, pharmacies, health and beauty centers, and gardening centers. This happened as the increase in total discretionary spending remained steady on a year-over-year basis in October 2025.
“The combination of pre-budget expectations, the upcoming Black Friday deals, and mild weather led consumers to postpone their purchases or reduce their spending in various categories,” the bank said.
Overall, card spending in the travel sector increased by 2%, while the level of transactions decreased by 5.7%. In this context, airline expenses fell by 3.3%, as the level of transactions decreased by 7.5%.
Expenditures are halted for a short time in view of the budget
According to Barclays, two-fifths of consumers (41%) adjust their finances in anticipation of the budget announcement. Of this group, 37% have made cuts to reduce expenses, 33% have postponed discretionary purchases, and 30% are building a savings cushion.
One-third (33%) overall reported that they have delayed making major financial decisions until after the budget, with that number increasing to 44% for Gen Z.
And all seven consumer and economic confidence indicators that Barclays monitored in October fell for the first time since August 2022, when the Bank of England announced the largest increase in the base interest rate in the last 27 years.
No trust in household finances
Confidence in the strength of the UK economy (22%), Europe (28%), and the world (23%) fell on a monthly basis, while confidence in household finances fell the most, from 74% to 63%.
The percentage of those who feel confident about their job security and their ability to spend on non-essential goods reached the lowest level since 2023, at 44% and 51% respectively, from 47% and 60% in September.
Commenting on these figures, Karen Johnson, head of retail at Barclays, said: “In the run-up to the autumn budget, consumers are taking a cautious approach to their spending. Although confidence declined in October, we see resilience in categories related to health and wellness, suggesting that people remain willing to invest in the areas that matter most to them.”
With Black Friday, he added, and Christmas approaching, we expect spending patterns to change again as shoppers seek out deals and seasonal discounts.
From his side, Julien Lafargue, chief market strategist at Barclays Private Bank and Wealth Management, said: “Both consumers and businesses seem to have adopted a wait-and-see approach before the autumn budget. Although this creates some short-term difficulties, it could put the UK economy in a position to recover once the uncertainty subsides, potentially creating the conditions for a strong festive period.”
