Additionally, the agency stated in a statement released on Thursday that the United Kingdom’s future outlook has changed from stable to negative, with the credit rating being set at “AA-“.
According to Fitch, the massive and unfunded financial package offered by Britain could, over the long term, cause a considerable rise in the nation’s fiscal deficit.
On September 23, British Prime Minister Liz Terrace and Finance Minister Kwasi Quarting unveiled a new “growth plan” that will lower taxes and change relevant laws through significant government borrowing to revive the economy after years of stumbling.
To stabilise the markets, the Bank of England intervened with a 65 billion pound ($73 billion) bond-buying programme, which helped restore investor confidence in the government but also undermined the value of the pound and the prices of government bonds.
And that was before Terrace declared it would no longer participate in the plan.
However, Standard & Poor’s agency recently announced that it had changed its outlook for the UK’s rating from stable to negative.
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