Shortly after taking office, the United Kingdom’s new Labour government announced the discovery of a massive shortfall in public finances. While much of the political debate has centered on the size of this fiscal hole, the real culprit is the set of arbitrary rules that British governments have imposed on themselves since 1997.
LONDON – Shortly after taking office, the United Kingdom’s new Labour government announced the discovery of a £22 billion ($29 billion) “black hole” in public finances, allegedly left by its Conservative predecessors. Prime Minister Keir Starmer, who had pledged to revive growth after years of economic stagnation, rising public debt, and a record-high tax burden, said he had “no choice” but to implement “painful” measures, including potential tax increases, owing to the Tories’ previous policies.
LONDON – Shortly after taking office, the United Kingdom’s new Labour government announced the discovery of a £22 billion ($29 billion) “black hole” in public finances, allegedly left by its Conservative predecessors. Prime Minister Keir Starmer, who had pledged to revive growth after years of economic stagnation, rising public debt, and a record-high tax burden, said he had “no choice” but to implement “painful” measures, including potential tax increases, owing to the Tories’ previous policies.