Credit Suisse Likes UK’s Chances of A Downgrade
As in, it thinks Britain is the country most likely to experience a funding crisis this year in the G7…
That puts us alongside Greece, Ireland, Spain according to FT Alphaville.
One of the obvious reasons being that our “budget deficit and the likely degree of fiscal tightening required would be worse than in any other OECD country. The OECD estimates that the UK’s cyclically adjusted budget deficit will be 7.2% of GDP this year.”
Which brings us on to what can be done. How about £11bn worth of cuts and a long freeze on public sector pay?
Guardian: The Treasury is planning to set out how it will save £11bn across government departments in the forthcoming budget.
Ministers are also looking at extending the public sector pay squeeze beyond the two years set out in the pre-budget report last December.
