Blog: Olly WehringBritain on the brink

Olly Wehring | 21 May 2009

The UK is within a whisker of Chancellor Alistair Darling's eyebrow hair of losing its AAA credit rating, a move that could seriously jeopardise the country's future economic health.

Investment house Standard & Poor's today (21 May) downgraded the UK economy from stable to negative. It warned that the country's bulging budget deficit means that there is now a one-in-three chance of the UK losing its premier AAA credit rating.

If that happens, and it hasn't since 1978, the UK government will find that it becomes more expensive to borrow money. In turn, that would jeopardise the current Government's policy of spending its way out of recession.

Standard & Poor's warned that Government spending must be reined in. The new Government to emerge from next year's general election, whoever that may be, will almost certainly have to make tough cuts - and not just to MPs expenses.

Chancellor Darling said in his Budget speech last month that UK debt is set to reach 59% of gross domestic product this year and is expected to rise to 79% by 2013/14.

Considering that the rate was less than 40% only a year or so ago, this is pretty seismic stuff and is largely what prompted today's warning from Standard & Poor's.

Out of recession by Christmas? Perhaps, but the road out looks like a long one.


Starbucks jumps on gin bandwagon

Starbucks has become the latest company to tap into the gin craze, with the launch of Starbucks Reserve Gin Barrel-Aged Cold Brew....


Feeling Blue on Monday? Help is at hand

It may not be scientific, but the third Monday in January has been coined 'Blue Monday' - the most depressing day of the year. Dreamed up in the UK by a psychologist commissioned by a holiday company ...


Bad day on the beer? This'll help

If you work for a brewer and are having a rough week, take a minute to regain some perspective with this, from the good people at US craft beer producer Sierra Nevada Brewing Co....


Brewers Association "bid" to buy Anheuser-Busch InBev strikes a chord

Is this a case of if you can't beat them, buy them?...

Forgot your password?