Posted by Joe Parkinson
- Reuters
- British opposition Conservative finance spokesman George Osborne, center, looks at notes as he travels on the tube in October.
U.K. opposition Treasury spokesman George Osborne said Tuesday that if elected, a Conservative government should be judged on whether it can defend the country’s AAA credit rating.
In a speech in London, Osborne also confirmed that the Bank of England would remain independent under a Conservative administration and retain its current 2% inflation target.
“Judge us by whether we can protect the U.K. credit rating,” Osborne said in a speech in London, adding that this was a “political gamble.”
“But the economic risk of not setting ourselves this benchmark is not one I am willing to take,” Osborne said.
Osborne laid out several benchmarks on which a conservative government should be judged including a commitment to raising exports as a percentage of gross domestic product.
The U.K. expects to have a deficit worth some 12.6% of gross domestic product in the current financial year and ratings agencies have warned the U.K. could see its AAA credit rating downgraded if its deficit reduction plans aren’t tightened.