The impact of the UK's election results

Impact of election results on travel & currency, the impact of tax changes and maximising your income

The impact of the UK's election results

  1. Impact of the election results on travel and currency

 

In the case of a Hung Parliament

“The uncertainty of a potential hung parliament has given Sterling yet another hit, with a 2% drop overnight. For many; the worst result for confidence in currency. Any signs of certainty and stability will help currency as the nature of the next government becomes apparent. Brexit has already added 11.9% to the price of a holiday and if you’re booking travel or buying currency, hold onto your money and think about going all-inclusive.”

In the case of a small Tory Majority:

“Whilst the headline of a May victory may offer consolation, the small majority is a cause for concern. The threat of a hard Brexit and entering into a period of unknowns means people will need to be at their smartest and most agile when doing any dealing in currency. Brexit has already added 11.9% to the price of overseas travel, so even holidaymakers on short breaks should look to lock currency rates or purchase currency incrementally in order to avoid being out of pocket due to rate changes.”

In the case of a Labour Majority:

“The markets may need some time to come to terms with a surprise Labour win. Brexit has been a huge driver of currency change, so expect markets to be hyper-sensitive to every move from a new, untested chancellor. Brexit has already added 11.9% to the price of a holiday and consumers shouldn’t just accept that more expensive travel and currency has become an unavoidable fact of life.”

In the case of a strong Tory Majority:

“Sterling’s decline will be eased by short term stability and the hope of a softer Brexit. However, Brexit has already added 11.9% to the price of a holiday, so for those buying or sending currency, watch rates closely, be prepared to move quickly and remember; we’re still far from being out of the woods. Our interactive currency tracker shows how Brexit news has driven the value of the pound, and there is still plenty of action to come.”

  1. The impact of tax changes and maximising your income

In the case of a Hung Parliament

“It’s too early to ascertain what – if any – income tax changes will make it through Parliament, or when in the case of a hung parliament. Regardless of any changes implemented, people worried about their finances can earn themselves the equivalent of an 8% tax break almost immediately (saving a ‘lazy tax’ of £2,396 a year) simply by getting their home utilities and financial services in order.”

In the case of a Tory Majority:

“The benefits to households from changes in income tax pale in comparison to the savings everyone can make by being smart with their utilities and financial services. At most, higher rate tax payers will save £1,200 each year from income tax changes, but they could cut a whopping £2,396 – nearly double – by getting better deals on household expenses. What’s more, the personal tax allowance increase won’t kick in until 2020, whereas with some simple changes, households can cut their bills significantly way before Brexit negotiations begin.”

In the case of a Labour Majority:

“Despite fears of a tax-grab with a Labour win, in reality, most households can offset any income tax increases and save cash simply by sorting out their utility and financial services bills. Our calculations show that people are typically paying an 8% ‘lazy tax’ of a whopping £2,396 every year from being stuck on bad rates and standard tariffs.”