By Alex Ellis

The UK’s emergency budget was announced today and this is a measure put in place by the coalition to combat growing debt and the UK’s budget deficit. During this announcement we found out that VAT is set to rise to 20% in the UK as well as a number of other measures which are set to be put in place to combat debt.

The currency market reacted very postively to this news and rates have climbed up almost half a percent on this mornings exchange rates. It will be interesting to see what happens in the future as this improvement may simply be a knee jerk reaction to the emergency budget.

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