Is the UK sovereign credit rating now safe?

As we stand on the verge of the largest reduction in the UK public sector spending in living history, the UK government is still adamant it has no choice but to rein in spending by around £80 billion over the next four years. The government has always remained firm in its belief that unless spending cuts were introduced in the short term then the UK sovereign credit rating would be under pressure and ultimately the UK government would find it difficult to raise finance in international money markets. However, even after these austerity measures is the UK sovereign credit rating safe?

The truth is that nobody really knows how the UK economy will perform in the short to medium term as a consequence of these austerity measures but ultimately there is a growing belief that the spend, spend, spend policy of the previous government could potentially have bankrupt the UK. The reduction in public sector spending will at least give the UK government some breathing space to try and breathe life back into the UK economy in the short to medium term. Whether or not the authorities will be successful in this task remains to be seen because there are still many challenges and many problems which lay ahead.