UK clings on to top credit rating

4 October 2011

The UK has held on to its top credit rating despite worries over the state of the nation's economies and doubts over the government's strategy to improve it.

Standard & Poor's has confirmed the UK is still clinging onto its AAA level at a time when chancellor of the exchequer George Osborne has announced billions of pounds of public money is to be pumped into businesses.

According to the ratings agency, the outlook for Britain's economy is stable at present - but this could change significantly should the Conservative-Liberal Democrat coalition's fiscal policies fail to deliver.

Director of the Institute for Fiscal Studies - which has been in operation for more than 40 years - Paul Johnson told Reuters that a fiscal squeeze post 2015 could be on the cards for Britain, adding: "The next set of growth forecasts will say the job won't be done and there'll be a couple of years of squeeze going into the next parliament."

By Tony Aynsley

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