Britain’s credit rating safer under Labour, says S&P

Britain's triple A credit rating would be better protected under a Labour government than under the the Tories.

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Britain’s triple-A credit rating would be safer under a Labour government than under the the Tories, according to one of the leading credit ratings agencies.

The biggest threat to Britain’s credit rating was the risk of leaving the European Union, rather than the state of the public finances, according to Standard and Poor’s.

As the Times reports today (£):

‘Standard & Poor’s said the biggest threat to Britain’s rating was not the state of the public finances but the risk of leaving the European Union. Labour has pledged to remain in Europe, but the Tories are promising a referendum in 2017 if they win the election.

‘Asked if Labour’s spending plans, which allow up to £28 billion more borrowing a year than the Tories, would jeopardise the UK’s rating, Moritz Kraemer, chief sovereign ratings officer at Standard & Poor’s, said: “Whether it’s faster or slower, we have no strong opinion — so long as the general direction of travel is sustainable.”

‘He added: “In the UK, we are more concerned about the European Union referendum.”’

S&P is the only major ratings agency not to have stripped the UK of its gold-plated AAA rating when the economy entered a period of prolonged stagnation following chancellor George Osborne’s ’emergency budget’.

In June, S&P warned of two big risks to the UK’s credit rating.

The first was “if we believed net general government debt was going to reach 100 per cent of GDP”.

The second was “a material weakening of the governance and institutional environment, and policy implementation capacity, for example as a reaction to polarising political conflict over the UK’s role in Europe”.

As the Times reports (£):

‘Labour’s plans are not expected to push the national debt anywhere near 100 per cent of GDP.

‘The second risk is more of a threat if the Conservatives win the election, Mr Kraemer indicated, as it was the only party committed to a referendum on remaining in the EU.’

‘Mr Kraemer said yesterday: “Being a member of the EU bestows the UK with multiple benefits. It is a very attractive place for investors, and not just in the financial sphere.

‘“If it splits with the EU, it’s not clear what benefits will remain. You cannot be sure what the relationship would look like.”’

9 Responses to “Britain’s credit rating safer under Labour, says S&P”

  1. swat

    Standard and Poor have done their sums, and have come to the right conclusion.
    Exit from Europe and the fear of will plunge Britain into a world of nightmares and terror.

  2. JoeDM

    Just anothe anti-UKIP scare story from the financial establishment.

  3. Michael Simpson

    Even when this is more a rebuke to the Conservatives, someone inevitably makes it about UKIP. You really do think you’re the centre of the universe don’t you? Everything is either a conspiracy or a means of crowding them out of the debate despite the fact that Farage is the most ubiquitous politician in Britain not to be an MP.

  4. sarntcrip

    FARAGE SAYS WE’RE TIRED OF THE TIRED OLD CAREER POLITICIANS TEN RECRUITS 3 THEY TRULY ARE TORIES 2 THE SEQUEL NOBODY IN THEIR RIGHT MIND WANTS

  5. sarntcrip

    MILIBAND’SIMAGE ISN’T THE PROBLEM FAILURE TO ENDORSE THE VICTIMLESS ROBINHOOD TAXAS OTHER NATIONS HAVE IS AN ERROR HE MUST CORRECT

  6. Stephen

    I suppose if S&P had a good record themselves this might be good news for Labour!

  7. Guest

    The UKIP are lead by bankers. You are an clown. The creepy sort.

  8. Paul

    What a twisted headline!
    One more labour government and this country will be bankrupt.

  9. smithann635

    I don’t know who in Britain take big credits. It seems to me that today more and more people
    take instant online loans. These short term loans are more convenient than any other credits and loans. The sums are not big but enough in case you need cash. Try ro found a trusted lender for not paying then high rates.

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