The UK has been warned its credit rating may be cut in future, potentially increasing borrowing costs.

The statement from the Moody's ratings agency followed concerns about the possible impact of the eurozone crisis on the UK's growth prospects.

It put the UK on "negative outlook", implying a 30% chance of losing its AAA credit rating within 18 months.

Chancellor George Osborne said the comments from the US agency was not a criticism of his government's economic policy.

"It was a reality check for the whole political system that Britain has to deal with its debts, that we can't waiver in the path of dealing with our debts," Mr Osborne told the BBC.

"This is yet another organisation - in this case a credit ratings agency - warning Britain that if we spend or borrow too much we're going to lose our credit rating," he added.

Ratings Agencies are an economic con trick foisted upon the world. Not only now are they telling everyone what countries should do, when in fact they have no more clue than anyone else, they're now telling everyone what countries will do in the future, and everyone just believes them. And for this they get paid enormous sums of money.

They're the economic equivalent of Russell Grant. And you wouldn't base economic policy on what he tells you.