Fitch says UK fiscal challenge is formidable

In its statement, Fitch said the fiscal challenge facing the UK is formidable and warrants a strong medium-term consolidation strategy, including a faster pace of deficit reduction than set out in the budget released in April 2010.

Fitch Ratings on Tuesday urged the UK to cut its borrowing by an additional 1% of gross domestic product per year if the country is to maintain its triple-A rating.

The warning is timely for the new UK Government, which on Tuesday will lay out fresh details on how they will address a budget deficit that reached £156bn (€189bn) in the last financial year.

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