Rigby Financial - How might the Tory-DUP deal affect your personal finances?
We as a country are entering further into uncharted waters. Following the controversial Brexit vote in June of last year in which the UK voted to leave the European Union, the country has witnessed yet further shock and awe when a snap-election announced by Prime Minister Theresa May ended not in a landslide Conservative victory (as many pundits predicted), but in a hung parliament. To enable the Conservatives to continue within their role as the party in power, a “confidence and supply” agreement has been brokered with the Democratic Unionist Party of Northern Ireland. As we write, the Conservatives are presiding over a minority government, with support from the DUP. Of course,this means that a lot of predictions have been well and truly overruled, and that the Conservative Party manifesto as published by Theresa May in May 2017 is still very much subject to change.
The main message regarding your finances as we enter this period of extreme political uncertainty is: don’t panic. Many regrettable impulsive responses can be attributed to an unexpected and extreme change in the political climate, so at this time more than any other, it is recommended that you treat this period as“business as usual” – albeit with rather more caution, perhaps. It is worth noting that the recent hung parliament, resulting in a minority government,will make policies and movements from either side a little more difficult to push through, and subject to greater scrutiny. Also, with the Democratic Unionist Party serving as the supporting body to the Conservatives, both parties will first need to agree on most motions before they are brought before parliament.In terms of some recently aired Conservative plans, such as the means-tested winter fuel allowance and the pensions double lock, it seems that the two sides will be at loggerheads. On other fronts, regarding an increase in the national living wage and personal-tax allowances, as well as a vow to keep energy bills down, the two parties appear to be ad idem.
The best approach at this time, for those concerned about their personal finances, is to await firm and certain answers to their questions. It may be that a new Budget is released in the months to come, to allow both the Conservatives and the DUP to have a say in upcoming national financial matters. We are also yet to hear anything concrete from the UK Chancellor of the Exchequer, Philip Hammond, statements from whom may shed a little further light on the future actions of the current two parties in power and will allow UK citizens to better understand what upcoming impacts the current status of our leadership might have on our finances.
If you are concerned about your personal finances and would like to speak to an advisor, you can simply contact Rigby Financial’s independent financial advisors on 01744 886077 between Monday and Friday, from 9am until 5pm. We look forward to helping you.