Credit

UK Borrowing Reaches Precipice 

The long-term sovereign credit rating outlook of the UK is now downgraded, according to credit rating agency Standard & Poor’s. The new ‘negative’ credit outlook, from ‘stable’, comes based on the fact that the government is continuing to borrow at levels that are quickly reaching 100% GDP. The news is likely to force the government to reconsider stamp duty relief—the suspension of taxes on recently purchased properties. The decision to extend the ‘holiday’ on stamp duty through the rest of 2009 will continue to erode tax revenues.