This is Money Podcast This is 2025: What happened to our finances and the economy this year
16 snips
Dec 26, 2025 This year has been a wild ride for finances, with a strong start followed by a shaky economy. Interest rates dropped, yet inflation spiked, causing confusion. There's been much debate over the government's budget and tax changes, facing backlash from businesses. Meanwhile, investors enjoyed a stellar year, spurred by AI gains. With mortgage costs rising, many households face financial pressure. The podcast also hints at a potential remortgage cliff on the horizon, while first-time buyers are making strides in the housing market.
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Rushed Policy Damaged Credibility
- The government repeatedly rushed policies, causing costly U-turns and political backlash.
- Simon and Georgie argue this approach damaged credibility and failed to deliver promised growth.
Piecemal Tax Changes Backfire
- Labour's tax changes have been piecemeal and confusing rather than a clear, strategic plan.
- Simon says small tweaks create unwanted consequences and reduce trust in policy direction.
Phase Tax Reform And Communicate
- Plan wide tax reform gradually and sell the vision clearly to the public.
- Use phased changes to avoid market shocks and allow investors and households to adjust.