S&P Global Ratings has revised the credit rating of the UK downwards, changing it to negative. The reason was the plans of the British Ministry of Finance to reduce taxes to support the economy of the country. The corresponding document was submitted by the head of the department in Parliament in September.
The document provides for cancellation of the earlier decision to increase profit tax for industries by 31%. However, such a step, according to the rating agency, poses a threat to the country's financial situation. The authorities plan to counterbalance the tax cuts with new loans, with no provision for any optimization of revenues or expenditures. Against this background the agency predicts an increase in the country's budget deficit and public debt over the next 2-3 years. In the short term it expects technical recession in the country, and in the next year - reduction of its GDP by 0.5%.