The Rest Is Money 239. 2026 Predictions: a bubble bursts, Starmer’s only hope & Trump’s vulnerability
21 snips
Jan 1, 2026 The hosts dive into the challenges facing the UK in 2026, pondering whether political stability and investment could spark a resurgence. They critique current economic strategies, emphasizing the need for growth over mere fiscal prudence. The looming AI investment bubble and its implications on the economy are discussed, alongside the geopolitical tug-of-war over critical minerals between the US and China. Amidst this, small businesses show resilience, signaling a glimmer of hope for the future.
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UK Growth Problem Needs Ambition
- The UK is experiencing extended economic flatlining with rising unemployment, especially among young people.
- Government measures so far nudge growth but lack the ambition and speed needed to reverse stagnation.
Sell Fiscal Discipline As Growth Strategy
- Present fiscal fixes as part of an ambitious growth plan to win investor confidence and lower borrowing costs.
- Use targeted tax and spending choices to reduce public debt cost and free up lower interest rates for the whole economy.
Make Health Policy A Growth Lever
- Treat getting people back to work via NHS improvements as an economic growth measure, not just welfare reform.
- Prioritise mental health and treatments that enable claimants to re-enter employment and boost demand.