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UK budget fails to please credit rating agencies

Despite the fact Alistair Darling confirmed that the UK budget deficit is likely to be around £167 billion this year a opposed to long-term estimates of £178 billion, this has done very little to quash the concerns of credit rating agencies around the world. The UK currently has the gold plated Triple-A rating on national debt although Standard and Poor's has placed this on "negative watch" ahead of the next election.

The real concern of credit rating agencies around the world is the fact that the UK government seems to be intent an investment, investment, investment strategy with regards to public sector services and the debt reduction program is very light and in many ways too little too late. Despite the fact that the government expects the budget deficit to half over the next four years this will still see UK national debt balloon to well over £1 trillion, something which is unlikely to help the UK's fight to retain its Triple-A rating.

There is a feeling that the UK government is looking to keep secret massive spending cuts and tax rises which would need to be introduced if Gordon Brown was voted back into power. The Conservative party has been a little more up front with its own ideas for reducing UK debt although this has backfired in some ways amongst UK voters.

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