George Osborne has slammed the Government after the market view of the UK’s default risk reached a record high.
Analysis of the latest credit default swap spreads shows the markets believe the UK Government is more likely to default on its debt than the governments of Portugal, Belgium, the Netherlands, France, Finland, Germany and Norway.
George, the Shadow Chancellor, said “Just a week after the Pre-Budget report, the markets are delivering their own verdict on Gordon Brown’s plans to double the national debt to over £1 trillion pounds. “
And he stressed, “Thanks to the Government, many European countries, including Portugal and Belgium, are seen as safer investments than the UK.”
Over the last year, the perceived default risk for the UK has increased almost fifteen-fold.