Downing Street is embroiled in a public spat over a Brexit-triggered cut to the UK’s credit rating, after its claim that the verdict is “outdated” was rejected.
The ratings agency Moody’s said No 10 was wrong to argue the downgrade would not have happened if the decision had been taken after Theresa May’s speech in Florence.
Instead, it stood by its cut, stating the speech had not changed the big picture of likely damage to the economy from Brexit, when the UK’s debt reduction plans are already off course.
“I’ve read the speech and it doesn’t change our view at all,” said Alastair Wilson, the head of sovereign ratings at Moody’s.
Meanwhile, Labour’s Treasury spokesman, Peter Dowd, said the downgrading was a “hammer blow” to the Government’s economic credibility.
“For the second time under the Tories the UK’s credit rating has been downgraded, and on this occasion citing their lack of faith in the Chancellor to meet his own spending targets as a result of unfunded spending commitments such as the deal with the DUP,” he said.
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