The Pound has slumped against more than 50 currencies since Rachel Reeves’ Budget (Image: GETTY)
has been dealt another blow with the revelation that the has slumped in value against 51 out of the 54 most popular holiday currencies since her Budget in the autumn.
The Chancellor is already under pressure after the cost of borrowing soared last week, with widespread reports suggesting she is piling pressure on UK regulators to scrap fiscal rules she regards as hindering economic growth.
Now an analysis conducted by travel money specialists No1 Currency has indicated that, while Sterling briefly rallied after Labour’s landslide win last July, it has lost considerable ground since ’ statement on October 30.
The steepest decline has been against the Costa Rican Colón, with the Pound now worth 8.3% less than it was on Budget Day.
Sterling has also weakened by 6.8% against the US Dollar, with further drops against several popular winter sun destinations. It has fallen by 7.8% against the Jamaican Dollar, 6.8% against the Barbados Dollar, and 6.4% against the Sri Lankan Rupee.
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Rachel Reeves has just returned from China (Image: Getty)
Ski enthusiasts heading to Switzerland will feel the sting as well. The Pound is now worth just 1.11 Swiss Francs, down 1.3% from 1.13 on the day of the Budget. Against the Euro, the most frequently exchanged holiday currency, Sterling has fallen by 1%, with £1 now worth €1.19.
Despite these widespread losses, there are a few currencies where the Pound has gained. Sterling is up by 0.3% against the New Zealand Dollar, 1% against South Africa’s Rand, and 1.1% against the Hungarian Forint.
Simon Phillips, Managing Director of No1 Currency, commented: “Labour’s post-election honeymoon, and the brief surge in sterling that accompanied it, all seems a very long time ago.
“The Pound is now worth less against nearly all of the most popular holiday currencies than it was on Budget Day, meaning the thousands of British travellers planning a trip this winter will find their Pounds won’t stretch as far as they did last summer.
A list of currencies against which Sterling has dipped since October 30 (Image: No 1 Currency)
“The falls have been especially sharp against the US Dollar, as well as the currencies of several destinations that jump in popularity during the cold winter months, including Jamaica, Barbados and Sri Lanka.
“However there are a few simple things you can do to get more bang for your buck when you’re abroad. The first is to remember that taking some local currency – notes and coins – will help you keep track of your spending more easily and avoid unexpected card charges.
“And if you’ve booked your trip but aren’t travelling for a while, make sure you keep an eye on the exchange rate between now and the time you go. Exchange rates can go up as well as down, and they can differ a lot between different travel money providers.
“Always shop around to get the most competitive quotes, and never, ever leave it to the airport to pick up your holiday money.”
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Speaking on Radio 4’s Today programme, former Labour shadow chancellor John McDonnell – a close ally of left-wing ex-leader Jeremy Corbyn – claimed early decisions taken by Sir and Rachel Reeves “tied our hands unnecessarily”, adding that the “strictures we placed upon ourself need to be re-examined”.
Mr McDonnell said that imposing cuts to get out of the financial turmoil would be “politically suicidal” and undermine the support on which Labour got elected, saying the Government just has to “see through” the market turbulence.
The former shadow chancellor, who had the whip withdrawn last year after voting to scrap the two-child benefit cap, also suggested the Government should “look to the Bank of England to intervene if necessary”.
He added: “I think the scene was set to a certain extent before the election, when we didn’t really have a thorough and open debate about the state of the economy and the options that we had available to us.
“I wouldn’t have ruled out the increases in income tax and wealth taxes on the wealthiest in society the way it was, and I wouldn’t have ruled out increasing corporation tax, so we sort of boxed ourselves in to a certain extent.”
Conservative leader Kemi Badenoch today claimed Ms Reeves was “hanging on by her fingernails”.
She said: “The Prime Minister just refused to back his Chancellor staying in her job.
” and Rachel Reeves have driven Britain’s economy into the ground.
“The markets are in turmoil and business confidence has crashed, yet the Chancellor is nowhere to be seen.”