British Prime Minister Gordon Brown has said he believed the UK will keep its coveted AAA credit rating despite a record deficit.
Setting out his economic plans, weeks before a general election, Brown said now was not the time to tackle that deficit with major government spending cuts.
He spoke after Fitch Ratings said Britain’s sovereign credit profile had deteriorated and a clear austerity plan was needed.
Brown also warned that it is vital to better regulate the global financial industry: “I believe there is now a real risk that if no action is taken globally, either the global imbalances which were the background to last year’s crisis will re-emerge with a vengeance in 2011 and beyond, or the global economy will experience a lost decade of low growth and low employment.”
Brown, who was Britain’s finance minister for a decade until 2007, warned that the recovery there remains fragile and there had to be investment in the growth sectors, while spending cuts risked plunging the UK back into recession.