Friday, 13 December 2019 18:36

General election 2019: What the Conservatives' win means for your money

General election 2019: What the Conservatives' win means for your money General election 2019: What the Conservatives' win means for your money

 

As the country contemplates the election results, people's thoughts will turn to the potential effect on their finances.

Money matters are often to the fore at this, expensive, time of year. The December election is likely to mean some changes to the pound in your pocket before the winter is out, with other changes more long-term.

Here are some of the key issues, based on the Conservative Party's manifesto, its plans before the campaign and its promises during it.

Overseas Christmas holiday boost

Those who are heading abroad for Christmas will see their holiday money go a little further.

The value of the pound improved against the US dollar and the euro when the Conservative victory became clear, and this will now have fed through to the rates at bureaux de change.

However, travelling overseas at this time of year can be very expensive, so this will only bring a little relief.

A Budget within 100 days

The big set-piece financial event of the year had been planned for November, but was postponed as the prime minister pushed for an election.

During the campaign, Boris Johnson promised a Budget within 100 days of the polling day if the Conservatives were elected. This is likely to mean a Budget in February or March, setting any changes to taxes, benefits and allowances in time for the start of the new financial year in April.

Mr Johnson promised that a tax break for workers, through a change to National Insurance, would be confirmed in that first Budget.

The current threshold sees workers paying National Insurance contributions once they earn £8,628 a year. The Conservatives said this would rise to £9,500.

Economists at the Institute for Fiscal Studies (IFS) calculated this would be worth about £85 a year for all those with earnings above £9,500 a year.

This Budget - and any subsequent ones during this five-year Parliament - will see no income tax or VAT rises (nor any National Insurance rises), according to a promise in the Conservative Party's manifesto. However, this was described as "ill-advised" by the IFS owing to the potential lack of room for financial manoeuvre it creates.

 

source: https://www.bbc.co.uk/news/business-50778312