How deep is Britain’s fiscal “black hole”?

With the stern look of a disappointed headteacher, Ms Reeves decried an “unforgivable” fiscal inheritance. Her focus was on immediate pressures in the current financial year. Even after accounting for the Treasury’s rainy-day fund and assumptions that some programmes would come in under-budget, she told Parliament that a £21.9bn ($28.2bn, 0.8% of GDP) overspend had been uncovered. About half of that sum came from inflation-busting pay increases for teachers, nurses, doctors and other public-sector workers. Most of the remaining overspend came from £6.4bn in higher-than-expected costs associated with asylum-seekers and illegal migration, along with smaller contributions from weapons for Ukraine, support for the railways and more.