Friday, September 15, 2017
How Brexit is devaluing the pound in our pocket
The new £10 note has been launched today, complete with a portrait of Jane Austen on the reverse. Ironically, the fact that it is 15% smaller than its predecessor also reflects the fact that it is 16% less valuable.
As the Independent points out, since the referendum on 23 June 2016, the pound has lost 16% of its strength as measured against Britain's main trading partners. As a result today’s new tenner is only worth £8.60 of pre-referendum money on the international markets.
As Eloise Todd, CEO of pro-EU campaign group Best for Britain, says: "Since the referendum on 23 June 2016, the pound has lost 16% of its strength as measured against Britain's main trading partners. So today’s new tenner is only worth £8.60 of pre-referendum money on the international markets,” she said.
"When it comes to what we can buy in Europe, the decline against the euro is even more dramatic: down to under £8.40.
"This represents much more than a squeeze on spending money for a family holiday. The Ministry of Defence is planning to spend £19 billion on equipment priced in dollars and £3 billion on equipment priced in euros over the next decade. The Brexit devaluation means either getting less – potentially leaving our forces under-equipped – or paying more, so starving other projects of money.
"The exposure of the NHS to the costs of the Great Brexit Devaluation is almost certainly even greater. The British Medical Association says that Brexit is already having a ‘negative impact’ on the NHS and poses ‘serious risks’ in the future.
"In other words, today's new tenner will buy Britain's NHS, Britain's armed forces and millions of British holiday makers £8.60's worth of pre-referendum goods and services."
So good job, Brexiteers. Their obsession with leaving the EU has sold the UK down the river again.
As the Independent points out, since the referendum on 23 June 2016, the pound has lost 16% of its strength as measured against Britain's main trading partners. As a result today’s new tenner is only worth £8.60 of pre-referendum money on the international markets.
As Eloise Todd, CEO of pro-EU campaign group Best for Britain, says: "Since the referendum on 23 June 2016, the pound has lost 16% of its strength as measured against Britain's main trading partners. So today’s new tenner is only worth £8.60 of pre-referendum money on the international markets,” she said.
"When it comes to what we can buy in Europe, the decline against the euro is even more dramatic: down to under £8.40.
"This represents much more than a squeeze on spending money for a family holiday. The Ministry of Defence is planning to spend £19 billion on equipment priced in dollars and £3 billion on equipment priced in euros over the next decade. The Brexit devaluation means either getting less – potentially leaving our forces under-equipped – or paying more, so starving other projects of money.
"The exposure of the NHS to the costs of the Great Brexit Devaluation is almost certainly even greater. The British Medical Association says that Brexit is already having a ‘negative impact’ on the NHS and poses ‘serious risks’ in the future.
"In other words, today's new tenner will buy Britain's NHS, Britain's armed forces and millions of British holiday makers £8.60's worth of pre-referendum goods and services."
So good job, Brexiteers. Their obsession with leaving the EU has sold the UK down the river again.
