Understanding the Fiscal 'Black Hole'

This chapter examines the financial challenges the new Labour government faces, focusing on a significant funding gap estimated between £22 billion and £100 billion. The discussion critiques the use of the term 'black hole' in public finances, advocating for a clearer, more nuanced understanding of fiscal policies and implications. It highlights the need for transparency and accountability from economic institutions regarding the sustainability of government funding amidst pressing issues like asylum support and the war in Ukraine.