M&G's Leaviss: The UK's own fiscal cliff is on the horizon

Jim Leaviss, head of retail fixed income at M&G, said the UK is facing the prospect of a US-style fiscal cliff within the next five years.

Leaviss argues the government has seriously underestimated the challenge of getting the UK's public debt-to-GDP levels under control. The country's debt-to-GDP ratio is estimated to have reached 88.7% in 2012. The UK's rising debt levels were pinpointed by Moody's as one of the main reasons why the credit rating agency moved to strip the UK of its AAA credit rating last Friday. Leaviss added the coalition's austerity measures have only just begun, warning more severe spending cuts need to be made to reduce the UK's debt burden. "The UK AAA credit rating was not sustainable; in the ...