Leaviss: UK could lose its AAA rating by December

M&G's co-head of fixed income Jim Leaviss has warned the UK could face losing its AAA rating on 5 December, the day of the Autumn Statement, as the growing budget deficit could force George Osborne to abandon plans for fiscal consolidation.

Ratings agencies Moody's and Fitch placed the UK on a negative outlook earlier this year and Moody's said the UK's safe haven status could be at risk if there are any signs of "reduced political commitment" in the attempts to bring down UK debt. Leaviss (pictured) said this morning's weak borrowing figures, and further talk of George Osborne abandoning his deadline to bring down debt in three years, could lead to a downgrade. The UK's budget deficit was the highest recorded for August at around £10bn, when analyst expectations were nearer £5bn. "Economists have been revising up the...