 |
'Jobs to go' due to oil tax hike
2011-03-24 18:52:51
24 March 2011 Last updated at 16:48 Share this page Delicious Digg Facebook reddit StumbleUpon Twitter Email Print Budget 2011: Oil firms warn jobs will go after tax hike
Please turn on JavaScript. Media requires JavaScript to play.
//WATCH: Shadow chancellor Ed Balls said George Osborne should have cut VAT on fuel
Ratings agency Moody's has warned that Britain's AAA debt rating could be at risk if economic growth is more sluggish than predicted - and the government responds by slowing down its deficit reduction plan.
"The government's ongoing commitment to large-scale deficit reduction is very important to the AAA rating and stable outlook," said Moody's in a statement.
"Although the weaker economic growth prospects in 2011 and 2012 do not directly cast doubt on the UK's sovereign rating level, we believe that slower growth combined with weaker-than-expected fiscal consolidation could cause the UK's debt metrics to deteriorate to a point that would be inconsistent with a AAA rating."
Preserving Britain's AAA debt rating is a top priority for the coalition government, as losing it would make it more expensive to borrow money.
Business Secretary Vince Cable acknowledged that there was room for manoeuvre on fiscal strategy, telling BBC Radio 4's Today programme: "There is... flexibility built into the system. And also it's very important we have the monetary policy that is supporting growth."
But he added: "We see no reason at present to depart from the pathway that we have chosen.
"It's been vindicated not just in the judgement of the main international agencies that are responsible for economic management; it's reflected in the very low interest rates that we are still able to attract because we have a positive rating, and we mustn't lose that."