The Treasury has refused to release a breakdown for Labour’s claim of a £22billion Tory “black hole” ahead of an anticipated tax raid in Rachel Reeves’ upcoming Budget.
Sir Keir Starmer referenced the figure several times during Prime Minister’s Questions, claiming it explained why 10 million pensioners would now lose Winter Fuel Payments.
However, the Treasury will only confirm £9.4billion is from public sector pay awards and more was spent on housing and dealing with asylum seekers.
A Freedom of Information request for a full breakdown was rebuffed by the Treasury, The Financial Times has revealed.
The Treasury instead said that complying with it “risks creating a chilling effect, as officials and ministers feel less able to make free and frank decisions relating to ongoing discussions to manage down in-year pressures”.
A spokesman added: “As with all publications, there are standard processes to ensure these documents are ready for publication.
“This should not be taken to imply that there is any doubt over the £21.9billion figure.”
However, an economist claimed the refusal to provide further information about the “black hole” is fuelling fear.
Ex-Bank of England economist Andy Haldane said: “[It has] generated a fear and foreboding and uncertainty among consumers, businesses and investors in UK PLC.”
Former Chancellor Jeremy Hunt also rubbished Labour’s claim.
He said:“Labour’s bogus ‘black hole’ is falling to pieces, with the government now admitting they can’t provide basic details because they aren’t sure they’re accurate.
“It’s clear that this fictitious ‘black hole’ is purely of Labour’s own making – simply a political smokescreen for their public sector pay awards.
“The public won’t be fooled by this shameless pre-text for tax rises.”
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Starmer’s unpopularity hits three-year high after Winter Fuel Payments cut
Keir Starmer
PA
Sir Keir Starmer is more unpopular with the public than at any point in the past three years, a new poll has revealed.
Forty-six per cent of voters now have an unfavourable view of the Prime Minister.
Thirty-two per cent of respondents to the Ipsos monthly tracker held a favourable view of Starmer, down six per cent since August.
The rating puts Starmer at the same rating when Labour lost Hartlepool to the Tories in its 2021 by-election.
