Today, on Tuesday, Bank of England's governor Mervyn King commented on the UK's budget outlook, assuring that there is no reason to worry over the outlook for its high grade rating status.

King said that rating agencies are likely to remain uncertain regarding the fiscal positioning for the United Kingdom and the expanding budget shortfall, yet he still sees that the nation is in no danger in loosing its triple-A status.

His comments were in response to a question asked by the parliament's Treasury Committee as they said should rating agencies be concerned over the current status for the United Kingdom.

He refused to take part in the rising tension between UK parties ahead of the election this summer; as the fiscal imbalance and the growing deficit that is expected to reach 12% of the GDP this year is taking much of the battle grounds. He stated that spending cuts can not be implemented immediately and need time to earn results.

He said You certainly can't eliminate the deficit in one year, there has to be a program announced that will start and continue right through the lifetime of the next parliament.

While on the economy he said that though the UK was away from the serious downside risk of another Great Depression yet the economy is still not out of the woods.