Since the pound has already taken a hit (and slightly recovered) from Brexit, Britons may see an impact on their finances as well. Analysts predict that the following expenses will be affected, either hurting or helping consumers’ budgets.
1) Mobile phone bills – Starting in June of 2017, consumers across the EU will pay the same price to use their mobile devices in EU member states as they pay at home. Now that UK mobile groups no longer need to abide with the agreement, and, depending on Brexit negotiations, Britons may have to pay more when using their phones in mainland Europe.
2) Petrol prices – If concerns about the economic outlook of Brexit lead to sterling falling faster than the price of oil, UK motorists may face higher prices at petrol stations. See the latest petrol prices.
3) Retail – Companies that import goods from abroad may need to pass on higher prices to consumers as the value of the pound fluctuates. With Britons already wary of a recession, shops face the decision to either raise prices (and possibly lose customers) or accept a lower profit margin while trying to stay in business. The retailers that could be affected the most are those selling larger items like furniture and electronics.
4) Travel – Foreign currency becomes more expensive with the fall in sterling. Therefore, your holiday money won’t get you as far today as it would have before Brexit. Analysts predict that this may reduce the demand for travel and wipe out cheap airfare from budget airlines. Unless Britain can renegotiate its access to the EU’s single aviation area, budget airlines will have to charge more for travel between Europe and Britain.
5) Energy prices – One area where Britons may actually see a benefit from Brexit is on their electricity bills. The reduction of VAT on household energy bills could save households an average of £60 per year. In addition, if the prices of oil and gas fall again, companies that use large amounts of energy will see lower bills and be able to stay competitive with overseas companies, further aiding consumers. However, plenty of uncertainty still exists surrounding the economy and its energy trading agreements.