The financial markets reacted badly to Kwasi Kwarteng’s mini-budget last week. But how will it impact ordinary consumers?
The pound has fallen to a record low on international currency markets after Kwasi Kwarteng, announced the UK’s biggest tax cuts in 50 years last Friday.
Sterling dropped to $1.03, the lowest it has been since decimalisation was introduced in 1971, before regaining some ground to stand at about $1.06 on Monday. “The Prime Minister need to take note because they’re not gambling with their own money, they’re gambling with all our money, and it’s reckless and it’s irresponsible as well as being grossly unfair.”Going abroad will cost more The pound will be less worth against the dollar, so hold off on that Las Vegas trip and to a lesser extent against the Euro so holidays on the continent will cost more. Even destinations like Dubai, which peg their currency against the dollar, will become more expensive.
Inflation As prices are pushed up for goods and services, that could send UK inflation rising even further and hitting consumers hard in the pocket.
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