Mark Littlewood appears on BBC R5's Double Take

Mark Littlewood discusses the UK AAA credit rating downgrading, pound devaluation and Osborne's political future

Following Moody's downgrading of the UK's credit rating from AAA to AA1, Mark Littlewood discussed the implications of the decision.

Mr Littlewood stated that the biggest resulting worry is Osborne's inability to reduce the deficit which he promised to do when he took the Chancellor's office two years ago.

"I think he's got to have a whole look again at what he's going to do with government spending and how he's going to close that gap. Kicking this away until 2018, he's now paying the price for that," said Mr Littlewood.

Regarding Government plans to reduce fuel duty, Mark Littlewood stated that he supports the strategy.

"I think a good argument could be made that if you reduce the cost of fuel, you might actually start to trigger economic growth, this 'Holy Grail' that the Chancellor has been grasping for but not actually picking up."

Mr Littlewood stated that high energy prices mitigate against business and that a cut in fuel duty may be the injection into the economy that's needed to stimulate growth.

"It's a gamble if you take the view that reducing fuel duty will increase revenues but frankly I think that George Osborne is in such a corne