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

THE FIRST months of a new British government are precious. Any problems can be blamed on ministers’ predecessors, who will struggle for a hearing. Capitalising on that honeymoon period can neutralise the political costs of tough choices: George Osborne, a former Conservative chancellor, moved quickly after the 2010 election to pin the need for swingeing spending cuts on Labour’s profligacy. Britain’s new Labour chancellor is following the same playbook. On July 29th Rachel Reeves presented the results of an audit into the state of the public finances, which she had commissioned straight after the election.