You’ve had your holiday booked for months, and you’ve been looking forward to some much needed rest and relaxation but with the recent Brexit result how is your summer holiday impacted?
It’s been a week since the nation voted to leave the European Union and there is no sign of Article 50 any time soon. What that means for the british holidaymaker is, in short not much will change. Here are your concerns answered:
What’s my spending money worth?
This is one of the very few immediate impacts Brexit will have on your holiday this summer. The pound hit a 31 one year low earlier this week, however it appears the pound has now stabilised against the Euro. What exchange rate you get on your currency is a difficult one to forecast with daily fluctuations. At the moment £100 is now worth £10 less when changed to US dollars or euros, compared to before the vote.
What this means for you is that you’ll have less money to spend abroad, but if you’ve planned a holiday in the UK then you you’re quids in – you should be getting more for your money, although day to day it’s unlikely you’ll see any real ‘gains’ for your pound spend.
Will my holiday cost more?
If you’ve already booked your holiday then no. Holiday Operators can increase the cost of your holiday, however we haven’t seen any sign of this yet. You have the legal right to get a refund or book a different holiday if the company makes a ‘major increase’ to the price of the holiday. If more than 10 per cent then the Association of British Travel Agents suggests that 10% or more is a ‘major increase’. However, this is only a guide.
In the long term it’s likely the cost of a holiday will increase across the globe, not just Europe, due to the slump in the pound.
Can I still use my EHIC Health Card?
European Health cover – the EHIC health card – is still valid across Europe and it’s unlikely anything will change. Many countries have deals regarding healthcare so it’s likely healthcare will remain unchanged in the future.
However, it is likely that travel insurance could be affected if we don’t reach some bilateral healthcare arrangement as before1.
Will using my mobile abroad cost me?
Mobile phone roaming charges in Europe were set to be abolished in mid-2017, a move by the European Union. However, there are now questions marks as to whether mobile phone operators will be obliged to offer the savings to UK customers2. What is certain though is that nothing will happen until the UK have completed all their negotiations with Europe.
For the holidaymaker this summer, very little will change. You’re likely to get a less preferential exchange rate on sterling, but aside from that the recent Brexit outcome is something that will have long term impacts we will have to keep an eye on.
For shorter term Performance and Portfolio updates take a look at updates from our CIO, Shaun Port.
As with all investing, your capital is at risk. The value of your portfolio with Nutmeg can go down as well as up and you may get back less than you invest.
1. What will Brexit mean for YOUR summer holiday? Passports, euros & exchange rates EXPLAINED 29th June 2016