Standard and Poor have recently confirmed the UK’s AAA credit rating but have also warned that the Government’s austerity drive would continue to drag on growth for years to come.
S&P said the outlook for the UK’s AAA rating was “stable”.
George Osborne said S&P’s decision was a reminder that without austerity the UK would be lead into “an economic catastrophe”.
S&P acknowledged that household spending would be hit by weak wage growth, rising unemployment and a weak housing market.
