What A Greek Meltdown Means For The UK

The problems in Greece will have an impact on British shores and the Government insists there are contingency plans.

Here is how the crisis could affect you:

:: We're not in the Euro so why will this hit the British economy?

The European Union is still by far Britain's most significant trading partner, accounting for nearly half of trade. The UK suffered when the Greek crisis reached its previous peaks in 2011 and 2012.

George Osborne has said: "I don't think anyone should be in any doubt - the Greek situation has an impact on the European economy which has an impact on us.

"We cannot be immune from these developments. That's all the more reason why we have to keep our house in order."

:: And if Greece goes under could it trigger another recession?

Not in and of itself. Greece is too small. But as part of a plausible more general crisis of the Eurozone and the EU, perhaps. Businesses and banks could become more risk averse, and stop lending, for example.

:: So if the worst happens how will it affect my mortgage and my savings, pensions?

Limited impact directly, unless you happen to be a depositor or shareholder in a Greek bank.

Indirectly, it might prolong the period of low interest rates, so good news for mortgages although no respite for savers.

If there is the expected fall in shares in the coming week then a significant amount could be wiped off the funds invested in by the big pension funds. Not good news.

:: Is there anything the Government can do to protect us?

Three areas are key here: banks, holidaymakers, and ex-pat pensioners.

Banks: Greek banks with branches in the UK have been assessed by the Bank of England as low risk. In similar situations with Icelandic and Cypriot banks, UK regulators have had an intensive presence on the office floor, to ensure depositors and the taxpayer is protected.

Holidaymakers: the Foreign Office advice to those planning to visit Greece changed last week. Britons are advised to take sufficient euros to last their entire holiday and cover any emergencies.

Ex-pat pensioners: there are about 6,000 UK pensioners who are being helped to get their pensions paid through the UK rather than Greek banking system.

:: Will it make any difference to the Budget on Wednesday?

The Chancellor will use the Greek crisis politically to make the case for his tough decisions, even more than normal. It could impact upon the projections for growth from the Office for Budget Responsibility.

:: Will any of this help David Cameron get a better deal with the EU for Britain?

The Eurozone crisis was always the fundamental opportunity for a deal identified by Number 10.

Right now the Government will want to balance the perception of being unhelpful, with its core view that the EU needs to work better for those countries inside and outside the Eurozone.

Images of crisis and of Brussels, Berlin and Frankfurt trying to counteract Greek democracy, could have more of an impact though on the current pro-Yes (anti-Brexit) polling in the UK.