British holidaymakers travelling abroad in August will have £77 million less to spend as Boris Johnson’s promotion of a destructive No Deal sends the pound crashing.
When Boris Johnson became Prime Minister on 24 July the Bank of England effective exchange rate, which values Sterling against a basket of major currencies, had the pound rated at 76.5484. The rate today is 75.04, a fall of just over 2%.
Official statistics show that 6.19 million British holidaymakers spent £3.83 billion on visits overseas last year. The fall in the value of the pound leaves them with an estimated £77 million less to spend than just a week ago when Boris Johnson became Prime Minister.
A family of four going away this August will therefore have £50 less to spend, as well as facing increased costs for hotels or flights purchased in Euros.
Commenting, Paul Williams MP, leading supporter of the People’s Vote campaign, said:
“Since Boris Johnson became Prime Minister less than a week ago and set the country on course for a destructive No Deal, the value of the pound has taken a hammering. So much so that a British family of four heading off on their summer holiday will have an average of £50 less to spend.
“No-one voted for this kind of economic uncertainty or for their summer holidays to become more expensive, but that’s exactly what Boris Johnson’s Brexit is delivering. The reason why people are finding everything more expensive when they go abroad is because investors are losing confidence in the pound and the UK’s economy. This isn’t just a temporary inconvenience for holiday makers, it is a sign that Boris Johnson’s Brexit is already making Britain poorer. Imposing his Brexit on the people without our consent is not only profoundly undemocratic, it is guaranteeing lower living standards and shrunken opportunities for a generation.”
“With Brexit already hitting Brits in their pockets, and with the risk of a disastrous No Deal growing by the day, the only way to deliver a lasting and stable conclusion to this crisis is to give the public the final say.”
Notes to editors
The effective exchange rate of the pound is the value of the pound against a basket of major currencies.
The effective exchange rate of the British pound has depreciated by 2.0101% since the 24th July, when Boris Johnson became Prime minster.
This means that British people on holiday need to spend 2.0101% more today than they would have in June to get the same amount of goods in foreign currency.
The British people spent £3.83 billion abroad in August last year.
Overseas travel and tourism monthly, ONS, 26 June 2019,https://www.ons.gov.uk/peoplepopulationandcommunity/leisureandtourism/datasets/monthlyoverseastravelandtourismreferencetables
If they spend the same again this year, the fall in the value of the pound since 24 July means holidaymakers will have the equivalent of £77 million less to spend in August than they would have got before Johnson became PM.
Source for effective exchange rate: Bank of England
Effective exchange rate 24/07/2019 - 76.5484
Effective exchange rate 30/07/2019 - 75.04
Depreciation in terms of quote currency (pounds sterling): 2.0101%
2.0101% of £3.83 billion is £76.99 million
Per person: 76.99 million divided by 6.19 million is £12.43
For a family of four this rounds to £50