The Government said a top credit rating agency's latest forecast on the UK economy showed the Coalition was on the right track with plans to cut the deficit.
Standard & Poor's said Britain's cherished AAA long-term credit rating will stay for now, but warned there was a chance of a downgrade.
The Treasury said:
In today's reaffirmation of our credit rating, Standard & Poor's stress the government's commitment to continued fiscal consolidation.
They specifically say that a downgrade could be prompted by a change in the government's 'willingness and ability to implement its ambitious fiscal strategy'.
This serves as a reminder that our country cannot afford to simply run away from our problems.
More top news
Fine for most on Monday but turning increasingly windy
Five people have been rescued from a small leisure boat on the Solent, after its engine failed and it began taking in water.
A US doctor has been accused of killing a lion during an illegal hunt, a week after it emerged dentist Walter Palmer killed Cecil the lion.