Finance
UK fiscal position remains "vulnerable" after tax-raising budget, S&P says
Published by Global Banking and Finance Review
Posted on November 28, 2025
1 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on November 28, 2025
1 min readLast updated: January 20, 2026
S&P Global Ratings considers the UK's fiscal position vulnerable following Rachel Reeves' tax-raising budget, maintaining an 'AA' credit rating.
MANCHESTER, England (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)
Economic growth is the increase in the production of goods and services in an economy over a period, typically measured by the rise in gross domestic product (GDP).
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