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Five ways the falling value of the pound will impact on your daily life
26.09.2022 - 12:57 / dailyrecord.co.uk
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.
The new chancellor has failed to spell out how he would make up for the lost revenue - spooking investors around the world.
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.
Labour’s shadow chancellor Rachel Reeves said the money markets had delivered a damning verdict on Kwarteng’s mini-budget.
But how will the fall in the value of the pound impact households in Scotland?
Reeves warned today: "The idea trickle-down economics – making those at the top richer still – will somehow filter through to everybody else has been tried before, it didn’t work then, it won’t work now.
“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.”
Here we look at how the falling pound affect our day to day lives.
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.
If the pound is worth less it makes it more expensive for retailers and manufacturers to import food, goods and materials. Consumers will notice that petrol prices will not fall so quickly and the cost of food in shops, most of which is imported, will remain high.
As prices are pushed up for goods and services, that could send UK inflation rising even further and hitting
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