The “black holes” now being revealed should come as no surprise to readers of this site. I have set out many times how the true indebtedness of the Uk state is between £3 trillion and £4.5 trillion depending on how you account for bank liabilities, on normal company accounting. (PPP,PFI, unfunded public sector employee pensions, nationalised banks and bad debt guarantees). I first challenged the old government’s rosy portrait in the Economic Policy Review, then augmented the figures as they borrowed more and bought up bank liabilities.
The new government is rightly going to seek independent judgement on the extent of off balance sheet liabilities. We are also learning of the rush to spend and commit to big contracts in the dying days of the Labour government. What else did you think my UK PLC CEO letters were about? We knew it was happening.