The UK’s credit outlook was lowered from stable to negative by S&P Global Ratings because of rising risks to the country’s fiscal health over the next two years.
While the slew of tax cuts announced by the British government last month are aimed to support economic growth, those policies risk a “substantial widening” of fiscal imbalances, raising the cost of borrowing and complicating the task of bringing inflation under control, S&P said in a statement.
