fitch ratings on wednesday lowered its outlooks on the united kingdom and the bank of england to negative both entities had previously had a stable outlook fitch said fitch said its outlook for the uk reflects the large and unfunded fiscal package announced as part of the new governments growth plan which could lead to a significant increase in fiscal deficits over the medium term fitch said the uks general government deficit will be 78 of gdp in 2022 and increase to 88 in 2023 unless there are compensatory measures the change in fiscal trajectory will push general government debt to 109 of gdp by 2024 from an estimated 101 in 2022 reflecting both higher primary deficits and a weaker growth outlook fitch said the agency also pointed out increased government bond yields in recent months reflecting higher interest rates and uncertainty regarding the fiscal strategy fitch said it sees average inflation increasing to 89 this year before gradually declining to 4 in 2024 fitch said the bank of england is the monetary arm of the uk sovereign and as such its credit profile is aligned with that of the sovereign government fitch affirmed the uks longterm foreigncurrency issuer default rating at aa it also affirmed the boes idr at aa last month sp global ratings lowered its outlook on the uk to negative from stable reflecting what it said were rising risks to the uks fiscal position over the next two years