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3 Prime Ministers in 10 Weeks Wrecks Havoc in the UK

The United Kingdom (UK) has been experiencing severe political turmoil in the last 10 weeks as they have had 3 different people go through the prime minister’s office. Unfortunately, things are far from settling down for the people of the UK as turmoil stretches beyond the economy and reaches into other parts of people’s daily lives, creating uncertainty and concern for almost everyone involved. The problem has been exacerbated by continual increases in inflation that have been experienced in the past year. It’s become the perfect storm for uncertain economic times ahead.

Who Have the 3 Prime Ministers in the UK Been?

The UK has gone through an unprecedented period in recent history as a political crisis engulfed Boris Johnson who was then replaced by Liz Truss. Liz Truss only went on to serve 45 days as Prime Minister which put her at the center of an economic reform policy before she turned in her resignation. Rishi Sunak took over the office of Prime Minister upon Truss’s leaving on October 25th, 2022. Sunak is now the Leader of the Conservative Party and hopes to help the country sort out the economic problems that seem to have been plaguing them in recent months.

UK Markets Face Turmoil & Uncertainty:

Global financial markets are currently citing the UK as the biggest source of economic turmoil in the financial markets. The government has currently bungled its response to the financial crisis which has forced the further collapse of the sterling and caused a surge in gilt yields, both of which are primary concerns to UK citizens at this time.

Currently, the Bank of England is contemplating a sharp rate hike to help calm the turmoil the markets are facing. The emergency meetings that will be held in the coming weeks, could make homes more expensive to purchase (as interest rates skyrocket) and could cause a hard landing for the rest of the UK economy.

The UK Government Struggles to Keep Up With Its Financial Commitments:

Financial commitments are also weighing heavy on the UK as the cost of running the country mounts. The government is contending with continual inflation and rising costs of regular expenses such as paying out mounting debt as well as keeping up with pension payments. Hedge funds and mutual funds are also struggling. The cost of borrowing money is at a decade-high for the UK, and it’s only going to go higher shortly. Rising rates are stretching the government’s balance sheets further and making it harder for the country to keep up with its financial commitments.

An Economic Downturn is Coming:

The economic downturn in the UK continues as the pound sinks to new lows in market turmoil and uncertainty. The pound has dropped as low as only being worth about $1.03 in US currency. The price of sterling has also plunged to being worth about $1.08 after a program of tax cuts was unveiled in the House of Commons. The aim was to help people offset the cost of inflation by cutting taxes, but with the current economic state of affairs in the UK, it’s uncertain whether this tax cut will have the intended effect of relief the government was hoping for it to have.

Households Cope with Increased Costs of Living:

Households in the UK are coping with seemingly endless increases in the cost of day-to-day living. Inflation rates have priced by 12.6% as measured by the Retail Prices Index, which means people are spending more money than ever to maintain the same standard of living they are used to. In September 2022 alone, the inflation rate month-over-month rose even higher as inflation hit 13.2%. Petrol costs increased to almost 2 pounds per litre, which means it will cost more to fuel up your car or heat/cool your home, which forces people to pay more in utilities as well. The cost of diesel fuel is going up even faster, which means that it costs more for truck drivers to bring goods to stores. The cost of food is up almost 17% over the past year since 2022. The increase in diesel fuel, in turn, drives up the price for consumers. Some of the hardest-hit people are those in the low-to-average income bracket.

These price increases are making families stretch their budgets thinner than ever, and make decisions that people should not have to make, such as choosing between food or medicine or paying the utilities.

FH Manning Can Help You Through Uncertain Times:

During these economically uncertain times throughout the UK, it’s more important than ever to ensure that you have someone reliable and knowledgeable on your side to help ensure that your investments and assets are protected. FH Manning is a top-rated financial adviser on Vouchedfor and has been for many years.¬† FH Manning Financial Services has been in operation for over 45 years, far longer than any serving Prime Minister! We are here to help you with all of your financial needs to ensure that you are economically stable throughout the economic downturn that the UK is experiencing.

If you need financial stability in your life in these uncertain times and need a trusted professional who always has your best interests at heart, please contact Claire Markham, MD of FH Manning Financial Services, via email at clm@fhmanning.co.uk. We look forward to working with you and ensuring your economic security in these uncertain and trying financial times.

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