But Fitch remember is one of  3 major credit agency the other 2 being S & P and Moody's and is following on from Moody's lead in the way by giving the UK this negative outlook.  And it is not good news ahead of the budget. It does give the opposition some more fodder next week next Wen. when Johns presents that budget.They already had some to go on  today with the unemployment figures out showing the unemployment is rising.  But what the government will say though it backs up George a 's plan to stick to plan A to reduce the fiscal deficit and Fitch goes into that statement by saying  it judges the government's fiscal consulatation plans to be credible reflecting the strong  political commitment and institutional capacity. 

 

I think  what it might mean is  that the budget is still being drawn up we know that 3 briefings has not been fianlized yet. There will be a meeting of what known as c at the end of week . That is the chance of Prime Minister from the conservative side within coalition of chief secratary to the treasury Daniel Alexander and * from the n from the other side of coalition from the liberal democrat. 

 

So what they might be minded not to do now is  produce some sort of big giveaways if you like and stick more tightly to trying to reduce the deficit . It means though that within next 2 years , there is about 50% chance that the UK could be downgraded but the government will say it is still on the right track .