{"id":1667125,"date":"2022-09-30T19:05:19","date_gmt":"2022-09-30T23:05:19","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1667125"},"modified":"2022-09-30T19:06:01","modified_gmt":"2022-09-30T23:06:01","slug":"sp-cuts-uk-rating-outlook-after-tax-cut-plan","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/sp-cuts-uk-rating-outlook-after-tax-cut-plan\/","title":{"rendered":"S&#038;P cuts UK rating outlook after tax cut plan"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fsp-cuts-uk-rating-outlook-after-tax-cut-plan%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1667125&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By David Milliken<\/p>\n<p>LONDON (Reuters) -Ratings agency Standard &#038; Poor\u2019s cut the outlook for its AA credit rating for British sovereign debt on Friday to \u201cnegative\u201d from \u201cstable\u201d as it judged Prime Minister Liz Truss\u2019s tax cut plans would cause debt to keep rising.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\">\n<\/div>\n<p>Finance minister Kwasi Kwarteng announced around 45 billion pounds ($50 billion) of permanent, unfunded tax cuts on Sept. 23 as well as costly temporary subsidies to household and business energy bills, sending sterling and bond markets into a tailspin.<\/p>\n<p>While sterling has since recovered, the Bank of England was forced to launch an emergency bond purchase programme on Wednesday to stabilise markets and has warned it would probably need to raise interest rates significantly in November.<\/p>\n<p>S&#038;P \u2013 which ranks British government debt one notch higher than rivals Moody\u2019s and Fitch \u2013 said it saw British public debt on an upward trajectory, in contrast to a previous forecast that it would fall as a share of gross domestic product from 2023.<\/p>\n<p>\u201cOur updated fiscal forecast is subject to additional risks, for instance, if the UK\u2019s economic growth turns out weaker due to further deterioration of the economic environment, or if the government\u2019s borrowing costs increase more than expected, driven by market forces and monetary policy tightening,\u201d it added.<\/p>\n<p>S&#038;P forecast Britain would enter a technical recession in the coming quarters and its GDP would shrink by 0.5% in 2023.<\/p>\n<p>Truss and Kwarteng met top officials from Britain\u2019s Office for Budget Responsibility on Friday, but have so far rejected calls from some investors and political rivals that they ask the independent OBR to publish new forecasts sooner than Nov. 23, when Kwarteng intends to set out a debt-reduction plan.<\/p>\n<p>Moody\u2019s said on Wednesday that Kwarteng\u2019s tax cuts were \u201ccredit negative\u201d, and has flagged Oct. 21 as the most likely next date for a more formal review.<\/p>\n<p>Britain\u2019s government has said that tax cuts and longer-term structural reforms to areas such as immigration and planning permits should boost growth, but S&#038;P said the benefit was likely to be modest, especially in the short term.<\/p>\n<p>\u201cFor now it is unclear whether the government plans to ultimately introduce fiscal consolidation measures to bring debt back on a downward path and we assume that the package will be funded by debt,\u201d it said.<\/p>\n<p>Britain\u2019s public borrowing was likely to average 5.5% of GDP a year from 2023 to 2025, compared with a previous forecast of 3%, while general government debt would rise to 97% of GDP by 2025, S&#038;P forecast.<\/p>\n<p>($1 = 0.8961 pounds)<\/p>\n<p> (Reporting by David Milliken; Editing by Leslie Adler, Daniel Wallis and David Gregorio)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/sp-cuts-uk-rating\/attachment\/a-general-view-of-the-canary-wharf-financial-district-in\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8T150-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8T150-BASEIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By David Milliken LONDON (Reuters) -Ratings agency Standard &#038; Poor\u2019s cut the outlook for its AA credit rating for British sovereign debt on Friday to \u201cnegative\u201d from \u201cstable\u201d as it<\/p>\n","protected":false},"author":66,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1667125","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1667125","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1667125"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1667125\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1667125"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1667125"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1667125"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}