Pound to euro exchange rate climbs after Sunak’s Budget
SHortly after Mr Sunak unveiled the new Budget, sterling increased to 1 to 1.15 against the euro according to the latest figures. Compared to the dollar, the sterling has experienced a sharp rise to 1 to 1.39 this afternoon. As a result of the new measures announced today, the FTSE 100 stock exchange has also increased by 40 points to 6,656.28 at the time of writing. This represents an increase of 0.62 percent.
Mr Sunak announced the furlough scheme will be extended until September to help businesses recover in what he hoped would be a swift upturn in 2022.
Mr Sunak said: “As businesses reopen, we’ll ask them to contribute alongside the taxpayer to the cost of paying their employees.
“Nothing will change until July, when we will ask for a small contribution of just 10 percent and 20 percent in August and September.”
Support for the self-employed will also continue until then with a fourth grant until April while a fifth grant will be introduced in May.
The pound’s value has increased since the announcement of the Budget
Pound live: Mr Sunak stated the UK was beginning to recover
To support lower-income households, the Universal Credit uplift of £20 will be continued for a further six months.
It had been due to run out in April but will now be extended to give further support for families.
In a further move to help the public, Mr Sunak announced an extension to the stamp duty holiday until June 30.
He said: “I can announce today the £500,000 nil rate band will not end on March 31, it will end on June 30.
“Then, to smooth the transition back to normal, the nil rate band will be £250,000, double its standard level, until the end of September – and we will only return to the usual level of £125,000 from October 1.”
Pound live: The sterlign has increased against both the dollar and euro
Budget 2021: Rishi Sunak outlines details of furlough extension
On stamp duty, CEO of Keller Williams UK, Ben Taylor, told Express.co.uk: “Today’s stamp duty holiday extension will be very warmly welcomed by homebuyers waiting to complete and currently stuck in the transaction pipeline due to market delays.
“The original stamp duty holiday is on track to save homebuyers an estimated £1.5bn and with the extension in place, this benefit should increase to £2bn with 360,000 transactions likely to benefit until the new June deadline.”
To help homebuyers in the future, Mr Sunak announced a new scheme to help those attempting to climb the property ladder by being able to secure a mortgage up to £600,000 with a five percent deposit.
The National Living Wage will also be increased to £8.91 from April in order to help those worst off.
Interest rates: Rishi Sunak warns they will not ‘stay low forever’ [Latest]
Fuel duty rates are frozen in Rishi Sunak Budget [Update]
Robert Peston highlights the ‘disguised tax rises’ in Budget [Insight]
Pound value live: Mr Sunak put forward a wide array of provisions
Pound Live: Sir Keir Starmer criticised the Chancellor
Commenting on the outcome of the budget, one analyst for ING said: “Overall, the additional fiscal support announced should underscore the constructive outlook for GBP for 2Q, with further fiscal help facilitating the economic rebound and making the pound the outperformer in the G10 FX space.
“We expect sterling/dollar to breach the $1.50 level in 2H21 and dips below $1.40 should be faded.”
Analysts also stated sterling had been the best-performing currency across the G10 nations this year and may continue due to the Budget.
This resurgence has been caused by the conclusion of Brexit and the successful vaccine rollout across the UK.
In order to bolster the economy throughout the pandemic, Mr Sunak has already spent close to £300billion on the economy.
Pound Live: Boris Johnson’s Cabinet members
The Government’s borrowing is expected to surge to £355billion in 2020/21 according to the Office for Budget Responsibility (OBR).
This represents 17 percent of the UK’s national income – the highest level since the Second World War.
However, the OBR claimed GDP would rise to 7.3 percent in 2022 as it predicted a swifter recovery.
The coronavirus will reduce the size of the UK economy by three percent of what it should have been in five years’ time.
Looking to the devolved nations, Mr Sunak also put forward plans for additional money to the rest of the UK.
Scotland will receive an extra £1.2billion in funding, Wales £740million and Northern Ireland £410million.