Brexit fears send British pound to new 30 year low The British pound slumped to its lowest level in years on Tuesday on fears that the U.K.'s divorce from the European Union will be bad for tne economy The U.K. economy has proved more resilient than expected in the wake of Eu referendum, but a sharp fall in the value of the pound and a big injection of money from the Bank of England have helped limit the fallout. Yet, opinion is sharply divided over the long-term effects of leaving the EU U.K. Treasury chief Philip Hammond acknowledged Monday that the British economy would pay a price for Brexit. He confirmed that a target to balance the budget by 2020 set by his predecessor would have to be abandoned a consequence of Brexit that will add to Britain's f1 trillion-plus debt. "Self-inflicted dislocations with its major market when the U.K. already carries a high level of public debt, a large current account deficit and severe imbalances across major sectors are unwise, to put it mildly," Schmieding said What about the Pound? currency fell to just above $1.27, near a 30-year low, in early trading, lower even than in the immediate aftermath of the EU referendum on June 23, when Brits voted to take their country out of the 28-member group. Losing full access to Europe's markets, the world's largest, could hurt growth. London's financial services sector would be particularly at risk if its banks lost the ability to do business freely across the continent. Automakers are worried about the possibility of tariffs. Share prices have recovered from a dramatic slump in value, with both the FTSE 100 and the broader FTSE 250 index, which includes more British-based businesses, trading higher than before the referendum. The Bank of England is hoping its decision to cut interest rates from 0.5% to a record low and the first cut since 2009 will stave off recession and stimulate investment, with some economic indicators pointing to a downturn.