THE GUARDIAN: Chancellor says he 'cannot let up' after move by Moody's which opposite number Ed Balls calls 'humiliating'
The chancellor has insisted that he will not change course despite the downgrade of Britain's credit rating in which he invested great political capital in maintaining.
George Osborne said Britain's situation would get very much worse if the government changed course after Moody's changed Britain's rating from AAA to AA1. The chancellor said previously the rating agency's triple-A rating was an endorsement of his austerity policies.
As far back as February 2010, he told an audience of Tory activists: "What investor is going to come to the UK when they fear a downgrade of our credit rating and a collapse of confidence?" In the Tory manifesto, published weeks later, he said: "We will safeguard Britain's credit rating with a credible plan to eliminate the bulk of the structural deficit over a parliament."
Ed Balls ,the shadow chancellor, described the downgrade as a "humiliating blow" for Osborne who was "ploughing on regardless with a plan which is not working".
In an interview at 11 Downing Street on Saturday, Osborne said: "I think we've got a very clear message, a loud and clear message that Britain cannot let up in dealing with its debts, dealing with its problems, cannot let up in making sure that Britain can pay its way in the world.
"What is the message from the ratings agency? Britain's got a debt problem. I agree with that. I've been telling the country for years that we've got a debt problem, we've got to deal with it."
Labour insisted the government had withdrawn demand from the economy which had slowed growth and increased the debt. » | Conal Urquhart, staff and agencies | Saturday, February 23, 2013
