UK coalition must cut budget deficit faster, Fitch ratings agency warns

There is neither the political will nor the economic cushion available to cut spending right now. Forcing austerity when everything but that is needed will only usher in a 1929-1932 "waterfall" economic response.

Credit ratings agency Fitch warned today that the UK faces a "formidable" fiscal challenge and called on Britain's coalition government to speed up efforts to cut the record budget deficit.

Fitch noted that the rise in public debt ratios since 2008 has been faster than in any other AAA-rated country. Britain's deficit is nearly twice as large as that seen during previous economic downturns in the 1970s and early 1990s.

Source: guardian.co.uk