GBP/AUD Climbs Following UK Autumn Budget

22 November 2017 by News Desk   |   SHARE  

The pound to Australian dollar (GBP/AUD) exchange rate fluctuated on Wednesday following Chancellor to the Exchequer Phillip Hammond’s Autumn Budget, say industry experts FC Exchange.

There were a number of important factors discussed which may affect the economy as the UK attempts to negotiate its way out of the EU.

Here are some of the key takeaways:

– The Office for Budget Responsibility (OBR) downgraded Britain’s gross domestic product (GDP) growth forecasts to 1.5% in 2017, 1.4% in 2018, 1.3% in 2019 and 2020, before expecting levels of 1.5% in 2021 and 1.6% in 2022.
– On the topic of inflation, Phillip Hammond said that the OBR expected consumer prices to peak at 3.0% this quarter and would decline towards the target in the next year.
– A £1.5 billion package is being made available to reform issues with Universal Credit.
– The OBR expects another 600,000 people to be in work by the 2020s, and the minimum wage will increase next year by 4.4% to £7.83 from £7.50 per hour. The basic rate income tax threshold will increase to £11,850.
– £30 million will be unlocked for digital skills distance learning courses.
– The NHS will be given another £3.75 billion extra resource next year, meaning this year and next there’ll be a £7.5 billion increase.
– Hammond expects there will be 300,000 homes being built every year by the mid-2020s.
– There’s an additional £44 billion allocated for housing over the next five years.
– Stamp duty for first-time buyers will be abolished on properties up to £300,000.
– £3 million is being invested in Brexit contingency planning.
– Fuel duty freezes since 2010 have saved car drivers money, with a total cost to the Exchequer of £46 billion.
– The VAT registration threshold will remain at £85,000 for the next two years while ways to reform it are assessed.

The pound to Australian dollar (GBP/AUD) exchange rate is currently trending in the region of 1.7505.

Disclaimer: This economic update is provided by FC Exchange a Global Reach Group Company, industry leaders in foreign exchange. Authorised affiliates are permitted to reuse content.

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