Cameron says loss of AAA calls for cuts

DAVID Cameron yesterday said the UK must go “further and faster” in reducing the deficit after losing its AAA credit rating.

Speaking for the first time since Moody’s downgraded Britain’s debt on Friday, the Prime Minister said the country must respond by stepping up efforts to reduce government spending.

“I’m the one saying this credit rating does matter, and it demonstrates that we have to go further and faster on reducing the deficit,” he told Prime Minister’s Questions.

However Cameron’s official spokesman insisted the Prime Minister’s comments did not hint at future policies that could be included in next month’s Budget.

Labour leader Ed Miliband had earlier ridiculed the coalition’s economic record, saying Britain now had a “downgraded government, a downgraded chancellor and a downgraded Prime Minister”.

Some Tory backbenchers are calling for even deeper spending cuts in the Budget, which will be delivered on 20 March. Last year chancellor George Osborne announced plans to cut a further £10bn from government spending in 2015-16, the year after the next general election is due to be held.