Britain is returning to the gloom of the 1970s as customer satisfaction collapses at the fastest pace on record, new data shows.

Energy and water companies were the worst performers in the country as high inflation and staff shortages triggered the sharpest year-on-year drop in customer satisfaction since the Institute of Customer Service began tracking the data in 2008.

Joanna Causon, the institute’s chief executive, said: “It almost feels like we have been plunged back into the 1970s.

“A time of the Cold War between East and West and depressed living standards, it almost feels like we are back to 1970s-style industrial relations too.”

A post-Covid staff shortage in everything from hospitality to call centres has increasingly drawn comparisons with the 1970s, as has the biggest wave of industrial action in years as train staff, nursing and teaching unions attempt to bring the country to a standstill in an attempt to boost their pay amid high inflation.

The UK Customer Satisfaction Index slumped year-on-year from 78.4 to 76.6 in July, its lowest level since January 2015, when companies were struggling to recover from the financial crisis.

Ms Causon said: “There is a perfect storm going on with labour shortages, skills shortages, maybe too much short-termism, and then companies not where they need to be in terms of tech, all against a backdrop of consumers probably being under more financial pressure than they have ever been.”

The share of customers who feel that they have poor financial well-being jumped from 8pc to 12pc year-on-year.

At the same time, companies are taking longer and longer to handle complaints. Nearly half of customers said issues took longer than expected to be resolved, up from 37pc last July.

This is costing the economy £9.8bn a year in lost time, in a major blow to productivity, the Institute warned.

The blow to productivity creates a “vicious cycle” as companies have to grapple with the toll of new delays, Ms Causon added.

Just as prices have soared, companies have been unable to hire enough staff. In many cases, they have also failed to invest in staff training, integrate their systems and use technology effectively, meaning customers can get sent in circles between different departments.

Ms Causon said: “It’s the length of time that it takes to resolve an issue and also the sense of being passed from pillar to post.”

Utilities companies, which have not only made enormous increases in bills but have also been wracked by scandals such as sewage dumping and forced installations of prepayment meters, performed worst.