How a manufactured “black hole” let the government loot the public purse and call it fiscal responsibility
A year ago the Keir Starmer government announced a £22 billion shortfall in the national accounts. Ministers said they had discovered a fiscal “black hole” left by their predecessors and that the only responsible answer was to raise taxes and borrow more. Taxes rose by £40 billion and borrowing increased by £35 billion within a single year. The government said the measures would stabilise the books and restore economic confidence.
Twelve months later the official story changed. The government now says the finances are worse than before, with a £50 billion gap between spending and income. The numbers have moved in the wrong direction despite record tax intake and heavier borrowing. The explanation offered a year ago no longer fits the facts in front of the public.
The original claim of a £22 billion gap never came with proper documentation. The Treasury and the Office for Budget Responsibility did not publish data matching that figure. It appeared first in political speeches and press briefings rather than in verified reports. By presenting the claim as settled truth, the government shaped the public mood and softened resistance to steep tax rises.
Revenue from the tax increases has not delivered the promised stability. Borrowing costs have risen, productivity has stalled, and departmental spending remains stretched. If the new £50 billion figure is accurate, then either the original shortfall was exaggerated or the current management has deepened the damage. Both options point to political manipulation rather than honest accounting.
Officials have continued to spend large sums on overseas projects, including reports of £256 million allocated for road work in Ghana. Meanwhile, domestic infrastructure and public services face delays, underfunding, and further cuts. That spending pattern undermines the claim that there is no money for core national needs. The contradiction exposes how selective the government’s priorities have become.
The pattern is familiar. Successive governments have used fiscal “black holes” as tools of persuasion. A new administration claims to uncover a hidden gap, blames its predecessor, and uses the narrative to justify unpopular measures. The process follows a routine sequence: announce a crisis, demand sacrifice, collect the revenue, and move on once attention shifts. By the time independent data appear, the public debate has faded and accountability disappears.
Such behaviour erodes public confidence in economic policy. Each cycle of inflated crisis leaves taxpayers poorer and public debt larger. The appearance of responsibility masks deeper mismanagement. When political communication replaces transparent reporting, national finances become instruments of control rather than service.
The present government has repeated that cycle on a larger scale. The gap it claimed to close has widened, and the remedies it imposed have made conditions worse. The outcome is measurable: higher taxes, higher debt, weaker trust, and no credible plan for recovery.
A government that presents false numbers to justify policy choices undermines democratic consent. Fiscal credibility depends on accuracy, not narrative. The evidence now points to systematic misrepresentation of the public accounts for political cover. The promised repair of national finances has not happened. The country has been charged more and received less in return. The supposed rescue has become a transfer of burden from government to citizen.
The Labour government under Starmer has committed billions abroad while claiming austerity at home. The UK has pledged around £21.8 billion in support to Ukraine, including £13 billion in military aid and £5.3 billion in non‑military assistance such as reconstruction and fiscal guarantees. Simultaneously, the UK has approved over 100 export licences to Israel since 7 October 2023, including at least 37 for military-controlled goods and equipment valued at roughly £127 million in the final three months of 2024 alone. Independent monitoring shows shipments of explosives, missiles, armoured-vehicle components, and other military equipment were delivered despite official statements claiming no direct lethal assistance. These overseas commitments have proceeded while domestic services and infrastructure face underfunding and cuts, exposing a clear prioritisation of foreign expenditure over British public needs. The actual figures of total contribution to Israel are available. The stated contributions to Ukraine, the figure is nearly the same as the initial black hole.
Authored By: Global GeoPolitics
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