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UK Fiscal Position Remains "Vulnerable" on Tax-Raising Budget, S&P

MANCHESTER, England, Nov 28 (Reuters) - Britain's fiscal position remains vulnerable despite finance minister Rachel Reeves' tax-raising budget this week, S&P Global Ratings said on Friday.

"We consider the UK's fiscal position as vulnerable and one of the key constraints on our sovereign rating," the ratings agency said in a statement.

Britain has an "AA" sovereign credit rating, rated as stable by S&P - a notch below the top "AAA" rating.

S&P said it saw a risk that the government might "back-track" some of its planned budget tightening measures as the next election, due in mid-2029 at the latest, approaches.

While it said Reeves' budget contained limited measures to help economic growth, the country's budget deficit should continue to narrow.

S&P said Britain's high income levels, its large diverse economy and independence of institutions would continue to support its credit rating.

Reporting by Andy Bruce; Editing by Kate Holton

Source: Reuters


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