S&P said it saw a risk that the government might “back-track” some of its planned budget tightening measures as the next election, due in mid-2029 at the latest, approaches
International News via Reuters:
Britain’s fiscal position remains vulnerable despite finance minister Rachel Reeves’ tax-raising budget this week, S&P Global Ratings said on Friday.
“We consider the UK’s fiscal position as vulnerable and one of the key constraints on our sovereign rating,” the ratings agency said in a statement.
Britain has an “AA” sovereign credit rating, rated as stable by S&P – a notch below the top “AAA” rating.
S&P said it saw a risk that the government might “back-track” some of its planned budget tightening measures as the next election, due in mid-2029 at the latest, approaches.
While it said Reeves’ budget contained limited measures to help economic growth, the country’s budget deficit should continue to narrow.
S&P said Britain’s high income levels, its large diverse economy and independence of institutions would continue to support its credit rating.
Reporting by Andy Bruce; Editing by Kate Holton
