Returning to the UK – Hello Blighty

Over the past three years, the pound’s remarkable fall from grace has left many Brits abroad in a precarious position. From 2007, when the pound bought 1.5 Euros, to today when it buys 1.14, the purchasing power of Brits has dropped by 25 percent. And now many Brits would like to come home – although it’s fair to ask, to what?

With tax rises just round the corner and spending cuts looming, Britain is a country facing no easy choices. As the debt-fuelled fake prosperity of the 21st century’s first decade turns to a bust the like of which few were prepared for, Britain may not be the most welcoming of places to return to.

Nevertheless, it looks like a wave of exiles is indeed Blighty bound.

According to Moneycorp, 70 per cent of Britons who moved to Europe are now considering a return to the UK. Many rely on incomes in pounds to pay their bills.

In contrast, Brits who moved to and found work English speaking countries such as Australia, Canada, and New Zealand have seen their prosperity increase relative to the UK; the money they took has increased in value, the houses they bought have risen in value and their wages have improved relative to the UK – all because of the exchange rate. Britain is 25 per cent poorer now relative to other countries than three years ago, and with pay freezes, tax rises and spending cuts looming, set to get poorer still.

Many of the people who are actually returning from Europe, rather than just thinking about it, are retirees, who make up about 20 per cent of British citizens abroad.

“Since the start of last year, we’ve had an increase of nearly 50 per cent in people coming back to the UK,” Vince Robinson of removalstofrance.com told the Independent newspaper. “Some of the smaller UK removal companies are struggling to get enough vehicles out there to cope with the demand because there’s not so much of an outbound market.”

“It’s been mainly retired couples, who’ve seen the value of their pensions fall by over 30 per cent because of the exchange rate… And if people still want to go to Italy, they are buying much further south where it’s a lot cheaper.”

With unemployment running at nearly 20 per cent, predictions this may rise to 30 per cent and over 42 per cent unemployment in the 16 to 24 age group today, the outlook for Spain has not been so bleak for a long time.

Silvia, who moved with her husband, Ken, to southern Spain in 2002 told the Independent:

“Everybody’s feeling the pinch. It’s the young British couples with children who’ve had it worst – the ones who sold their businesses and properties in the UK, burned their boats, and now can’t get work out here. They’re living hand to mouth.”

“All the odd jobs, the plastering and teaching private English classes, which used to bring in a few Euros here and there, that’s all drying up. We’re scraping along, but if this situation continues, we’ll have to make some serious recalculations.”

It may be that, for many Brits, the European dream will have to be put on the back burner for some time. For the moment, the old Commonwealth economies, with lower government debt levels, continue to look attractive to Brits – although the battered British Pound can no longer buy you as much house as it once did. It’s also getting harder to move, with Australia continuing to tighten its criteria for residence and New Zealand reducing its migrant intake in 2009 and 2010.