The Treasury has hit back at warnings by the credit ratings agency Moody’s that the likelihood of a hard Brexit and a squeeze on the public finances would damage the UK economy’s long-term health. We are not complacent about the challenges ahead, but we are optimistic about our bright future,” a Treasury spokesperson added. The shadow treasury chief secretary, 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. “The warning that Moody’s have issued by downgrading the credit rating is that the economy will be weaker once the transitional deal comes to an end.

Source: The Guardian September 23, 2017 12:56 UTC