Moody's states that the UK government’s increased borrowing, amounting to approximately £28bn, presents additional challenges to public finances amid already difficult fiscal conditions.
The rating agency highlights that the recent budget is unlikely to significantly enhance UK economic growth and lacks a solid protection against potential financial shocks.
Moody's pointed out that the ability of new investment spending to raise growth potential is limited unless underlying structural constraints are effectively addressed.
Despite the increased borrowing being somewhat supported by new debt measures, it complicates the already challenging fiscal consolidation efforts facing the UK.
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