What Does The Falling Pound Mean For Your Wallet?
The pound has fallen by 35 cents against the euro to almost like for like value in the last year. Now we could spend a very, very long time outlining just why this happened and why the current climate and several bad decisions in UK politics made this possible, but instead it seems far more helpful to our customers to just talk about what it means for them right now.
In supermarkets we’ve already seen how groceries made by British companies are now becoming more expensive due to the fact the ingredients come for abroad. With our decreased spending power we’re unable to purchase as many goods from outside the UK as we previously did. This means that for now food prices may fluctuate, most likely rising.
Unilever, a manufacturing group which makes a lot of products some of us couldn’t do without recently had a short-lived row with Tesco over several of their products – a reported 10% rise in the cost was the problem, due to the falling pound. Although the two did reach an undisclosed compromise, it does signal that in some cases, things may become more expensive.
On the other hand, the currency being this low may attract foreign investors – but that does mean very little for the public on a personal level. However, if you’re in a business which is an ‘exporter of services’ – like an architect’s firm or another creative industry, it means that your business could see a boom in clients from abroad due to the fact it’s better value for their money.
Tourism Into The UK Is On The Rise
Speaking of abroad, tourism into the UK is on the rise, again due to better value for money. High street brands are experiencing heightened sales due to the pound’s current weakened state, and local tourism in places such as Cornwall could be on the rise as people across the world descend on a nation where everything is currently very cheap.
Of course the flip side is tourism outside of the UK for those using the pound has become more expensive – holidaymakers are getting very poor rates of exchange at the bureau de change, some reporting getting less than a single Euro for every pound. This could work out in your favour though if you work in the UK in tourism, retail, pubs or restaurants, as residents of this country search for more local thrills.
So all in all it’s somewhat of a mixed bag – yes, you might see an increase in sales if you’re in retail, services or tourism, but this could very well be offset by an increasing ‘price of bread’, as in you may just end up spending any gains you make – more so when you go abroad. It’s quite the stalemate, and results are still hard to predict as the climate is due to continue changing as the government still has no concrete plan for the country’s future following recent events.
If you have ever thought about starting a small business which could see increased sales or interest due to the falling pound, now is a fairly good time.