Fitch lowers outlook for UK rating from 'stable' to 'negative' in light of Mini Budget

Maintains ‘AA-’ rating

Ratings agency Fitch has lowered the UK’s government debt rating from “stable” to “negative” in wake of the Mini Budget, but maintained the UK's "AA-" investment grade.

The agency cited the "large and unfunded" fiscal package announced as part of the new government's 'Growth Plan' as a main driver for its decision, which it said could lead to a significant increase in fiscal deficits over the medium term. Chancellor scraps plans to remove 45% income tax rate for high earners According to Fitch, the lack of independent budget forecasts, as well as an apparent clash with the Bank of England's efforts to fight inflation had "negatively impacted financial markets' confidence and the credibility of the policy framework, a key long-standing rating strength...