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.”
Investors took fright after Chancellor