UK consumer confidence edged up only slightly in September, indicating that the optimism triggered by Andy Burnham becoming prime minister is starting to fade as concerns over the cost of living intensify.

GfK said its consumer confidence index rose by just 1 point to -13, after surging 9 points over the previous two months.

Consumers also reported a decline in their willingness to make major purchases.

Neil Bellamy, consumer insights director at GfK, said in a phone interview: "This is a tipping point. People are looking ahead and worrying about where energy prices are heading."

Burnham succeeded Keir Starmer as prime minister in July and immediately announced a series of measures aimed at helping people cope with the cost-of-living crisis.

However, that optimism, dubbed the "Burnham bounce," appears to be running out of momentum as consumers absorb the full impact of the Iran war.

Rising fuel and energy costs are pushing inflation higher and increasing pressure on the Bank of England to raise interest rates.

At the same time, speculation is growing that Chancellor John Healey will raise taxes in next month's Budget to repair the damage to the public finances caused by recent turmoil in the bond market.

An analysis by Bloomberg Economics found that household energy bills could rise by another 25% when the price cap is reset in January 鈥?a jump that would push CPI inflation above 4% in 2027.