Downing Street confirmed that Sir Keir Starmer approved a speech given by Rachel Reeves, which suggested there was a £20 billion black hole in public finances. This claim was misleading because, in reality, such a financial gap did not exist.
The speech implied a significant shortfall in public funds, creating a perception that the government's financial situation was far worse than the facts supported. Despite this, Starmer did not intervene or correct the misinformation before the speech was delivered.
The incident led to criticism both of Rachel Reeves for the inaccurate statement and Keir Starmer for allowing the claim to stand without challenge. This has raised questions about the accuracy of the Labour Party’s messaging on economic matters.
"Sir Keir Starmer was aware there wasn’t a black hole in the finances but still signed off the speech containing that assertion," sources close to the matter said.
This case illustrates a notable example of political figures endorsing misleading information, which can undermine trust in public statements and party transparency.