S&P Global Ratings has cautioned that the UK’s public finances remain under considerable strain, despite the revenue-raising steps outlined in the Autumn 2025 Budget. The agency said structural spending pressures and muted growth mean fiscal stress is likely to persist through the medium term.
S&P described the UK’s fiscal position as “vulnerable,” calling it one of the key constraints on Britain’s sovereign credit rating. While it expects government deficits to gradually narrow through 2028, the agency also warned that the UK’s fiscal consolidation plan faces risks — particularly toward the end of the forecast horizon, when spending demands are expected to intensify and political space for further tightening may shrink.
The comments underscore lingering concerns about the UK’s debt trajectory and highlight that the latest budget measures are unlikely to materially shift the long-running fiscal challenges.
