The National Institute of Economic and Social Research warned this week that the Government faces a £50 billion blackhole in the public finances. Research by the independent think-tank found that there is now a budget deficit of £41.2billion and to fill the hole and restore the £9.9bn of headroom set in last year’s Budget, Rachel Reeves must either raise taxes or cut spending by £51.1bn.
The warning comes in the week that the Bank of England was forced into an interest cut because unemployment has risen 10 per cent in the last year and inflation is rising faster and higher than expected and is now predicted to reach 4 per cent.
Commenting, Shadow Chief Secretary to the Treasury, Richard Fuller MP said:
Socialism is always - repeat always - a disaster for working families. And matched with serial incompetence it deepens the pain.
The Chancellor is clearly out of her depth. After last Summer’s disastrous fake PR campaign about a “black hole” inheritance, she has created a 𝗥𝗘𝗔𝗟 financial black hole 𝗧𝗪𝗜𝗖𝗘 the size of the fake one.
How did she do it ?
By targeting family and small businesses in North Bedfordshire and beyond; by ruining family farms in North Bedfordshire and beyond; by targeting families who support their children with their education which, especially in North Bedfordshire, requires huge financial sacrifices by parents.
And now the Bank of England has lost faith in the government’s ability to control public finances by only just passing the expected cut to interest rates.
As a country we need to wake up! Government is doing too much, doing it poorly, taxing too much, killing off enterprise. We need to rewire the State, cut back on what our generation takes out so we can give future generations more hope.
