The three big ratings agencies have all delayed their report on the UK credit rating until after the election. Presumably this will be the week following. All three have started leaking. The leaks are that if there is a hung parliament they will downgrade the UK credit rating. This will increase the cost to the UK of the debt. Asuming that just one agancy downgrades by one level then the UK is looking at an additional £10bn a year or thereabouts. Loss of our top rating would hit the City badly, and damage the source of 12% of our wealth. Maybe another £10bn pa, though very hard to estimate. Everyone in a job would need to contribute an extra £700 pa (in addition to expected increases) to cover this hole in our accounts. The situation has very high risks of a downward spiral - indeed a probability of a downward spiral. Depending on how well or how badly a hung parliament does we could well be looking at needing IMF help.