Sterling Strengthens After Budget Announcement

March 17, 2016 3:59 pm Published by

Sterling gained strength against the US Dollar and Euro today following Chancellor George Osborne’s budget announcement to the House of Commons yesterday.


Here are the main points:

  • Fuel duty was frozen for the 6th year running
  • A new tax on sugary soft drinks aiming to raise £520 million
  • Tax cut for higher earners paying the 40p rate
  • The tax-free tax allowance increasing to GBP 11,500 in April 2017
  • UK economy forecast to grow by 2% in 2016 as opposed to the anticipated 2.4%
  • Lifetime ISA – for every £4 saved, the Government will top this up by £1 up to the value of £4,000

Although growth is now expected to be slower than forecast for 2016; the market reacted well to the budget announcement and strengthened the value of the Pound overnight.

The current GBP-USD exchange rate stands at 1.445. 


The current GBP-EUR exchange rate stands at 1.279.


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This post was written by Kayleigh Driscoll

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