"While the autumn statement does not fundamentally change our overall view on the UK's public finances, it again underlines the challenges the government faces in reducing the UK's large budget deficit..." Kathrin Muehlbronner, senior vice president at Moody's Investors Services said in a press release.

"The new forecasts are broadly compatible with our own, as we have expected the fiscal consolidation to proceed at a slower pace than targeted by government."

British finance minister George Osborne surprised his critics on Wednesday by increasing his budget surplus target for the end of the decade, when he delivered his half-yearly budget statement.

(Reporting by Ana Nicolaci da Costa, editing by Andy Bruce)