Britons worried as pound sterling falls to record low
Press TV, London
The British pound takes a pounding again only days after the country’s finance minister announced the biggest tax cut package in decades, all funded by borrowing at a time of high inflation.
They termed it a mini budget, but it was a mega shift in direction. The Chancellor of the Exchequer confirmed the government would implement PM Liz Truss’ electoral pledges to reverse the national insurance rise, cancel the corporation tax rise, and a surprise new tax cut for the highest earners.
Ordinary Britons may not think about exchange rates on a daily basis, but a fall in the pound will affect their day-to-day life.
Household finances, cost of importing goods from overseas, oil is priced in dollars so a weak pound can make filling up your car with petrol more expensive. Gas is also priced in dollars, Technology goods, like iPhones, that are made abroad, may get more expensive in UK shops. Even things that are made in the UK but from parts that are bought abroad can get much more expensive.
There are also concerns about a long recession as winter looms with no end in sight to the energy crisis or the war in Ukraine. Online calls for a general election are now gaining traction. Inside the conservative party, rumors about a no-confidence vote against the brand new PM.
Some experts think the Bank of England could act soon to halt the pound's slide. But many others are saying the government’s decision to borrow its way out of the current situation could end in tears.