Moody’s Warns Large Unfunded UK Tax Cuts Threaten Credit Rating
Office workers walk around a 'Men Working Overhead' warning sign in the City of London, UK.
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Moody’s Investors Service warned the UK government that its new mini-budget, which included sweeping tax cuts that sent the pound to a record low, risks doing lasting damage to the nation’s debt affordability.
“Large unfunded tax cuts are credit negative,” it said in a statement. Such a move will “lead to structurally higher deficits amid rising borrowing costs, a weaker growth outlook and acute public spending pressure stemming from the pandemic and a decade of austerity.”