UK Budget: Expats must be financially prepared for no deal Brexit outcome
Chancellor Philip Hammond on Monday delivered his last Budget before Britain leaves the European Union in March next year.
Following the announcement that the Chancellor is allocating an additional £500 million to prepare for a no-deal Brexit, it’s my view that the millions of British expats around the world should consider reviewing their personal financial strategies.
Although £1.5 billion had already been put aside in the case of a no deal scenario, the fact this has been increased to £2 billion will be considered by many people as something of a concession to the assertive Brexit wing of the Tory party.
This additional £500m for no deal preparations, in effect making a no deal situation a more compelling negotiating stance for the government than it was previously, risks it taking place.
Beforehand, the European Union could justifiably say that the Prime Minister was bluffing in her threat to walk away with no deal. However, the extra funding announced in today’s Budget shows an increasing inclination to focus on a no deal scenario.
As such, should Britain crash out of Europe without a deal, millions of expats across the globe could be impacted in two fundamental ways.
First, sterling would unavoidably fall further. This would be a huge knock-back for people who receive British pensions or income in pounds, as living costs would be considerably more expensive in real terms.
Second, without extensive collaboration between the UK and EU after Brexit, there is a chance that existing payments from British firms, this includes pension and insurance companies, to people residing in the European Economic Area could be affected, or even become impossible.
Of course, this could be a major blow to many British expats.
Therefore, in the face of this ongoing uncertainty surrounding Brexit, in particular a no deal, British expats should review their personal financial strategies.
This will help them to not only mitigate the risks a no deal Brexit could represent, but also permit them to make the most of potential opportunities that may result.
A no deal Brexit could gravely impact the finances of millions of British expats, so it could be wise that they ensure their strategies are able to weather such an outcome.