Election 2017: What now for your finances?


Now the voting is over, it is time for a new kind of count - a calculation of what a hung Parliament means for your finances.

Uncertainty abounds yet, even in its infancy, we know that the government - whomever forms it and however it operates - will make changes that will have a significant impact on your finances.

This will have permutations for pay, decisions determining the length of our working lives and, of course, a new relationship with the European Un

ion that will affect our financial outlook as a nation and individually.

There is some consensus on matters of finances between the parties, for example on help for those in serious debt, but there are questions over whether these will be high on a priority list for a government that will have to work hard for any policy to be given the green light.

So, what might change and when?

What now?

The performance of the pound will be closely watched in the coming days, not least by those planning a holiday this summer.

Sterling fell sharply against the dollar and the euro following the UK's vote to leave the EU - making the cost of a typical holiday including travel and currency about 12% more expensive since the Brexit vote, according to one estimate.

The election result brought an initial 2.3% drop in sterling against the dollar at just below $1.27, having been at $1.29 before the first exit poll. Against the euro, the pound was down 1.4% at 1.1386. The trajectory now as the fallout of the election takes shape, and when negotiations with the EU begin in earnest in a few days' time, will determine what people get at the bureau de change for their summer getaway.

A weaker pound could mean prices rising faster in the shops. It also seems unlikely that interest rates will be raised by the Bank of England anytime soon, which is good for borrowers but bad for savers.

Pound dollar exchange rate since referendum