DBRS Morningstar analyst Julia Specht said UK public finances remain tight and
credit quality depends on whether the government can implement a credible
economic and fiscal plan within constrained fiscal space. Public sector net
borrowing in June fell 33.1% YoY to £16.0bn (US$21.4bn), but fiscal year-to-date
borrowing through June is £2.7bn above the OBR forecast. Specht warned the key
risk is whether new prime minister Burnham can advance policy objectives without
undermining fiscal credibility.