Spending review 'should not affect UK's credit rating'

Corporate banks and others may be relieved to hear October's spending review is unlikely to affect the UK's credit rating, according to one financial body.

Andrew Goodwin, senior economic advisor to non-governmental forecasting group the Ernst and Young ITEM Club, observes markets and ratings agencies appear to be "relatively happy" with the coalition's approach to economic matters.

However, further austerity measures to be announced next month must be backed up by credible and detailed spending plans if the UK is to retain its triple-A rating, suggests the wealth management expert.

Those in corporate banking might welcome the 'detailed and transparent' fiscal policy described by Mr Goodwin, but many fear further cuts will have a negative impact on employment and markets, with some experts highlighting the threat of a double-dip recession.

Moody's announced on Monday (September 20th) Britain's credit rating is stable. Suggesting it is unlikely to change in the near future.  ADNFCR-2318-ID-800076303-ADNFCR