Rachel's black holes

 Wind the clock back to 2024 and Rachel was making a big fuss about financial Blackholes. 

She moaned on an almost daily basis that those nasty conservatives had left her with a £20 Billion blackhole in their finances....

So fast forward to June 2026. 

In 2024/25 Rachel increased net borrowing by £148 Billion. In 2025/26 she then increased borrowing by £132 Billion and so far in April/May 2026 she has increased borrowing by an additional £46Billion (now £23 Billion per month)

That comes to £326 Billion in roughly 24 months which means an average of £13.6 Billion per month.  It's beginning to look like the original £20 Billion blackhole was more a pimple than a blackhole.

Where has this money gone?  It's hard to point to any tangible assets. 

It looks like it's been spent on NHS pay settlements, welfare spending, education (probably teacher pay rises).  Some has gone onto house building. 

So when Labour came to power, the debt pile was £2.7 TRILLION and it has increased 11% in just 2 years to £3.0 TRILLION. If the money was invested then there would be income return from the investment.  It's costing 5.7% for the additional borrowing of £326 Billion so the investment needs to yield in excess of 5.7% to start repaying the capital.

So assuming the markets tolerate an additional £13.6 Billion in borrowing per month then by the end of the 5 year government term - Labour will have increased the national debt to a staggering £3.5 Trillion.  Monthly interest payments to service the debt will have reached a Rachel size black-hole  of £16.7 Billion per month.....

Sadly it looks like Rachel has spent the current £326 Billion on Opex rather than Capex investment.  In other words we are funding NHS pay rises and inflation busting 10% increase in welfare payments on the never-never....We are spreading the cost into infinity....

The cost to service this additional £326 Billion is £18.5 Billion per year (a Rachel sized black hole in itself). Where's the money coming from to service the debt?  Well it's simply being added to the debt pile....nothing is ever paid down.

Sadly it looks like Frugal Rachel is set to be replaced by someone more willing to splash the cash. So watch this space.  The numbers don't make sense and the IMF is likely to come knocking.

Nothing can escape the gravitational pull of a black hole and sadly the size of the debt pile means the UK is destined to collapse into the black hole.


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