On this episode of the Money Confidence podcast, I talk about the Mini-Budget, what it means for you, why the pound is falling and how a falling pound may affect you.
On Friday 23rd September the Chancellor (Kwasi Kwarteng) delivered his Mini-Budget, which sent the pound falling to a record low against the dollar.
I summarise the main tax cuts announced in the Mini-Budget as well as the potential tax savings.
On Monday 26th September the pound fell to it's lowest level against the dollar of $1.03. This was because of the large tax cuts announced in the Mini-Budget by the UK government, which is to be paid for by borrowing billions of pounds.
I discuss 5 ways the falling pound may affect you, including more expensive trips abroad, higher prices of goods and services and higher repayments for some mortgages.
Forecasts are predicting that interest rates will hit 6% by November. This will lead to increases in people's mortgage repayments who are on a tracker or variable rate, which is around 2 million people in the UK. Those coming to the end of their fixed rate or looking to buy for the first time will have fewer and more expensive deals to choose from.
Fixed rate mortgages depend on interest rate expectations as well as the rate today, which is why lenders are withdrawing mortgage deals in order to re-price them.
Since recording this episode, the Chancellor has done a U-turn and will NOT abolish the 45% tax rate. The pound bounced back but it is still weak against the dollar and euro and some economists predict it will go back down.
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ABOUT THE HOSTS
Sarah is a Chartered Financial Adviser and Certified Financial Coach and Georgia is a Senior Paraplanner. Together, they have over 20 years experience in financial services and are on a mission to educate others about money in a fun and non-jargon way. They will help you master your finances and money mindset so that you feel more confident with money and the decisions you make around money. They talk all things money from investments, pensions and benefits to your mindset around money and steps you can take to improve your relationship with money. They aim to make it fun, educational and are with you every step of the way. Together, you've got this!
The information given in this podcast is for your entertainment and should not be construed as financial advice. No liability can be accepted for any individuals relying on this information without seeking specific advice and guidance. As always, take independent financial advice before making any investment decisions. Our discussions are based on tax and legislation in England which may change.
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