Fitch warns UK about 'formidable' fiscal challenge

LONDON

Fitch Ratings agency has warned that Britain faces a "formidable" fiscal challenge and must cut its budget deficit faster.

In a special report released Tuesday, Fitch notes that the rise in public debt ratios since 2008 is faster than any other AAA-rated country. The deficit is forecast to reach 10.4 percent of gross domestic product this year.

Prime Minister David Cameron's new coalition government -- which has pledged drastic spending cuts to curb Britain's deficit and public debt -- will deliver an emergency budget on June 22.

Fitch says it must set out a more ambitious program than the previous government's forecasts to reduce the deficit to 8.5 percent of GDP in 2011/12 and to 5.2 percent in 2013/2014.