The pound fell for the third consecutive day yesterday against the dollar due to the government’s announcement that national insurance contributions will be hiked to help fund social care. Against the euro, sterling strengthened slightly yesterday after weakening on Tuesday.
Yesterday evening, MPs voted 319 to 248 in favour of the tax hike. During the debate in the House of Commons, Labour and some Conservative MPs raised questions about the government’s plans. Five Conservatives voted against the changes, whilst thirty-seven abstained.
It’s a quiet day for UK data today, but a series of data will be released tomorrow, including GDP and industrial production figures.
