Fitch downgrades UK economy

Fitch Ratings has downgraded the UKs long-term foreign and local currency Issuer Default Ratings (IDR) to 'AA+' from 'AAA'.

View all 4 updates ›

Labour: Fitch downgrade 'humiliating' for Osborne

Labour's shadow chancellor Ed Balls said the Fitch downgrade was a "humiliating blow" to David Cameron and George Osborne.

This is another humiliating blow to a Prime Minister and Chancellor who said keeping our AAA rating was the number one test of their economic and political credibility.

And it ends a disastrous week for George Osborne’s economic policy after the IMF downgraded its UK economic forecasts again and warned Britain needs a plan B for jobs and growth.

It’s not the views of the credit rating agencies, but the economic realities they are responding to which should be ringing alarm bells at the Treasury.

Fitch is clear that their decision is a result of the weak growth performance of the UK in recent years.

They are responding to nearly three years of stagnation, rising unemployment and billions more borrowing to pay for this economic failure.

This downgraded Chancellor needs to wake up and realise that his failing economic policies are causing long-term damage and Britain’s families and businesses are paying the price.

When even your biggest allies – the IMF and the credit rating agencies – abandon you it really is time to put political pride aside and finally act to kickstart the economy.

– Ed Balls

More top news