Following a ratings assessment, the credit ratings agency Fitch have said that Britain still has a higher budget deficit and debt than most triple A rated bonds, and was in a similar position to France and the US, who also had a top rating with a negative outlook.
Within a statement released following the closure of the London markets on Wednesday, Fitch warned the UK had, "very limited fiscal space to absorb further adverse economic shocks in light of such elevated debt levels and a potentially weaker than currently forecast economic recovery".
Fitch’s announcement, which echoes that made previously by Moody’s comes a week before the UK’s budget, and adds more pressure on the Chancellor, George Osborne, who said: “A week from the Budget, this is a reminder of why it is essential Britain sticks to its plans to deal with its debts.
“As Fitch itself says, the reason we are keeping our triple A rating is because of ‘the progress made in reducing the government’s structural budget deficit and the credibility of the fiscal consolidation effort.”
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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