The British pound has recently taken a plunge, a fact that was further exasperated following the death of Queen Elizabeth II.

Though one may assume the Queen’s failing health and subsequent passing was the major reason behind the GBPs devaluation, the true culprit could be a looming fear of an upcoming recession that threatens to hit the British Economy.

Political events such as former Prime-minister Boris Johnson being ousted by his own party due to a series of ethics scandals as well as the election of a new Prime-minister only two days before the passing of the Queen, not to mention the 10-day long mourning period that involved country-wide shutdowns, have made the situation much worse.

With inflation soaring to 10%, the highest level since the 80’s, the future of the pound is beginning to look grim.

In a bold economic gamble, the new Prime-minister Liz Truss has announced emergency budget measures, in an effort to bring new life to the failing currency.

These measures include:

• Cancelling planned rise in corporation tax to 25%
• Reversing the recent 1.25% rise in National Insurance contributions
• Reducing the basic rate of income tax from 20 pence to 19 pence
• Scrapping of the 45% tax paid on incomes over £150,000 ($166,770), taking the top rate to 40%
• Significant cuts to stamp duty
• Creation of a network of “investment zones” around the U.K. 
• A claim-back scheme for sales taxes paid by tourists.
• Scrapping of an increase in tax rates on various alcohols.
• Scrapping of a cap on bankers’ bonuses.

It remains to be seen if Truss’s bold gamble will pay off or not, but it seems that at the moment the situation for the British pound, remains “sink or swim”.

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