Cameron warns Britain of growing debt

LONDON, June 8 (UPI) -- British Prime Minister David Cameron said without budget cuts the annual payment for Britain's debt would rise to $100 billion a year within five years.

Cameron called the country's current debt "staggering," The Guardian reported Tuesday.

The current debt payment is about $58 billion a year.

Credit rating agency Fitch Inc. warned Tuesday that Britain needs to act "very quickly" to keep its current AAA minus rating.

In a special report, Fitch said Britain faces "formidable" challenges to bring its debt to a manageable level.

"The fact that Fitch has felt the need to comment on the (British) deficit again is an indication that they are still considering downgrading the U.K.'s sovereign debt rating. This will turn up the pressure on the new coalition government," said Mark Bolsom, head of British trading at Travelex Global Business Payments.

"The gloomy outlook from Fitch is weighing heavily on sterling," he said.

The British pound dropped to $1.4382, losing more than half a cent against the dollar Tuesday.

In London, the FTSE 100 stock exchange lost 0.81 percent, 40.91 points, to 5,028.15.