Impact on Individuals

  • A rise in inflation as a result of higher import prices and a reduction in interest rates means a higher cost of living
  • The devaluation of the pound means that it is more expensive to go on holiday as £1 will buy less euros, dollars or other foreign currency
  • The continuing fall in the value of the pound also means that there will be greater investments into overseas shares, but also there will be a fall in investment into small UK businesses
  • Average UK property expected to fall in value due to the uncertainty in the market and lack of consumer confidence
  • Commercial property funds have been suspended as lots of people sell their property shares
  • Investments in bonds and gold have gone up as investors lower their risk and switch to safer options
  • British expats see a fall in their income as a result of the fall in the value of the pound
  • Oil prices rise as a result of the appreciation of the dollar relative to Sterling, further increasing the cost of the living