LONDON, March 31 (Reuters) - British consumers grew less gloomy in March as lower mortgage repayments boosted disposable income even as the recession took an increasingly heavy toll on jobs, a survey showed on Tuesday.
The GfK/NOP consumer confidence barometer rose to a 10-month high of -30 in March from -35 in February, confounding expectations for an unchanged reading.
The figures will provide some cheer for Prime Minister Gordon Brown who is lagging in opinion polls and must call an election by the middle of next year.
The biggest improvement related to people's expectations for the economy which rose to -31 from -40 in February.
The Bank of England slashed interest rates to a record low of 0.5 percent in March and pledged to buy assets with 75 billion pounds of newly-created money in an unprecedented attempt to kick-start growth.
"Consumer confidence jumped quite significantly to levels not seen since May last year," said Rachael Joy, of GfK. "It suggests that lower interest rates and a better picture for household bills are restoring some confidence."
The GfK consumer confidence barometer has been improving gradually since hitting a record low of -39 in July last year but remains low in historical terms.
(Editing by Ruth Pitchford)