LONDON (Reuters) -The tax rises at the centre of Britain’s budget this week underscore the government’s commitment to cutting its debt although the “execution risks” of achieving it remain high, rating agency Moody’s said on Friday.
Moody’s said the UK’s commitment to fiscal consolidation had been an important driver for the agency’s decision a week ago to reaffirm the country’s Aa3 investment grade rating and its “stable” outlook.
“While the government’s willingness to bring public finances back in line with its targets is positive, execution risks remain high,” Moody’s said in an assessment of Wednesday’s UK Budget announcement.
“In recent years, government expenditure has consistently exceeded initial forecasts, resulting in higher deficits and debt.”
(Reporting by Marc Jones; editing by Alun John)
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