David Vance SubstackRead More
I think everyone in the UK must be sick to the back teeth of hearing Labour politicians whine about the (imaginary) £22bn financial black hole that they claim the Conservatives left behind after 14 years in Government. (This never *actually* existed but Labour have repeated it ad nauseum and the media go along with it)
But I have breaking news for you – Labour have created a £20bn black hole of their very own!
UK government borrowing rose by more than expected last month, adding to the pressure on the Chancellor, Rachel Reeves. Borrowing – the difference between public spending and tax income – was £20.7bn in June, up £6.6bn from the same month last year, the Office for National Statistics said.
So, let’s just be clear because the legacy media won’t – the ONS is plainly stating that there is a gaping £20.7bn black hole and LABOUR have created it. They own it.
How have they done this, you may ask?
Higher spending on public services and debt interest payments outstripped revenue from other taxes, including employers’ National Insurance contributions which was lifted in April, the ONS said.
In other words, Labour is lavishly spending on their State sector drones but the costs of doing so are way beyond current tax revenues.
What to do?
Well, you could try to cut Welfare but the Labour backbenches won’t hear of that. So there is only one thing left to do – fiddle the fiscal rules and raise taxes and that is precisely what will happen in the Autumn budget.
If you look at 10 year and 30 year gilts, you will see that they have soared. The money markets have no confidence in Labour nor should they!
Every Labour Government since the end of WW2 has ended in economic failure. This one has started that way!
