Posted Oct 2, 2022, 12:57 PMUpdated Oct 2, 2022, 1:09 PM
Nothing seems to be able to deflect the British Prime Minister from her tax reform project. Not even the placement of London’s sovereign rating under a negative outlook by S&P Global Ratings. In other words, the possibility of a term degradation of this note, if the economic situation of the kingdom does not improve.
For the agency, the “mini-budget” presented by the British Minister of Finance, Kwasi Karteng, with its 45 billion pounds sterling (51 billion euros) in tax cuts is likely to significantly reverse the trajectory of public debt. S&P now expects the UK’s public deficit to widen by an average of 2.6% of gross domestic product per year until 2025 and an increase in debt, “contrary to our previous forecasts which predicted a fall in the debt as a percentage of GDP from 2023”, specifies the agency.
