OBR questions Reeves' inheritance - debt hole or exaggerated doom and gloom?

The phantom debate about the alleged "debt hole" of 22 billion pounds that Rachel Reeves supposedly inherited from the Conservative government has gained new impetus. The official budget watchdog, the Office for Budget Responsibility (OBR), expresses doubts about the depiction of the recent financial situation following Jeremy Hunt's departure. Instead, the OBR refers to hidden costs amounting to 9.5 billion pounds handed over to the current Finance Minister Reeves. The judgment on Reeves' financial legacy was published alongside the assessment of her first fiscal policy budget. Richard Hughes, head of the OBR, illustrated the financial vacuum with disarming self-irony, stating he is "not an astronomer" and does not claim to analyze "black holes." However, he made it clear that the Treasury was already aware of the upcoming burdens before the March budget. The documents revealed that Hunt's legacy indeed leaves a deficit in the public budget for this year. However, it amounts to less than half of the 22 billion pounds Reeves cited, which calls into question her extensive tax increases that could go down in British history. Hughes noted that the current government simultaneously provided 23 billion pounds to raise the spending limits for this year. Interestingly, these expenditures stem from both compensating existing financial gaps and new policies announced by the government since March. Despite the financial warnings, Reeves decided to intensify spending and not only cover the existing deficits but also exceed them. Amidst the debate, the Shadow Chancellor accused the OBR of political activism—an ironic twist since the institution was established by his own party. Jeremy Hunt complained to the OBR and the top civil service about the sensitive timing and the unusual scrutiny, which could undermine impartiality. The publication of the investigation results was deliberately delayed due to supposedly "market-sensitive" information and ultimately made a basis for the broader assessment of Reeves' financial policy. The results paint an unflattering picture of Hunt's tenure by describing the imminent breach of budget targets as the most severe since the COVID-19 crisis.