Liam Halligan, a columnist for the Sunday Telegraph and co-host of Planet Normal, discusses the Labour government's early missteps and the challenges ahead. He critiques their approach to the housing crisis and warns against chasing the elusive 'center ground.' The conversation dives into the impact of tribalism on political debate, and the risks posed by net-zero policies. Halligan also highlights the disconnect between mainstream media and the views of disillusioned voters, arguing for a more representative political discourse.
The Labour government's support is superficial, driven primarily by opposition to the Tories rather than genuine public approval or enthusiasm.
Starmer's leadership contrasts sharply with Blair's era, as current policies lack the ambition and trust that once characterized the Labour Party.
The proposed tax increases and punitive fiscal policies are criticized for being ideologically motivated, risking economic stability and affecting middle-income families negatively.
Deep dives
Shallow Support for the Labour Government
The current support for the Labour government is characterized as broad but shallow, largely stemming from a sentiment of 'not being the Tories.' Despite obtaining a significant majority in the July 2024 general election, the party garnered fewer votes than its predecessors under Jeremy Corbyn in 2017 and 2019, marking a concerning decline in genuine public support. The recent electoral results indicate a troubling disconnect, as a substantial majority of voters, approximately 80%, did not choose Labour, revealing a loveless relationship between the party and the electorate. This sentiment is compounded by actions that have alarmed both those who supported and opposed Labour, suggesting potential volatility in their political standing moving forward.
Comparison with the Blair Era
The current landscape presents stark contrasts between the Starmer government and the earlier Blair administration. While Blair's government came to power amidst genuine enthusiasm and a well-respected cabinet, Starmer's leadership lacks a similar gravitas and public trust, as many perceive a dispiriting governance style. The discussion highlights that the shadows of past leaders like Blair and Brown, who enacted significant reforms such as the introduction of a minimum wage and the independence of the Bank of England, are absent in Starmer’s policies. This disparity raises questions about the Labour administration's competency in addressing contemporary challenges effectively.
Economic Mismanagement and Policy Criticism
Critics argue that the Labour government is mishandling fiscal policy, particularly regarding their quick decisions on public sector pay and the imposition of taxes without adequate economic reforms. The focus on punitive taxation, along with the repeal of the Conservatives' free speech measures in universities, has stirred discontent even among Labour's own supporters. Furthermore, assertions of a fiscal crisis within the government are deemed exaggerated, with some analysts suggesting that the economic challenges are manageable and were known prior to Labour's ascendance. This perception of unpreparedness and overreach highlights concerns regarding the direction of Labour's economic policies and their long-term implications.
Impact of Net Zero Policies on Economic Growth
The ambitious net zero policies advocated by the Labour government are criticized for potentially harmful economic ramifications, particularly concerning job losses in the traditional energy sectors and over-reliance on renewable energy technologies. Specific concerns have been raised about the feasibility of targets for decarbonization by 2030, especially given the current infrastructural constraints in energy storage and generation. Experts emphasize that a balanced energy mix, which includes hydrocarbons, remains essential for maintaining job security and economic stability. The rush towards net zero seemingly prioritizes ideological goals over practical realities, risking adverse effects on working-class communities dependent on the oil and gas industry.
The Role of Capital Gains Tax and Education Policy
Proposed tax increases on capital gains and the introduction of VAT on private school fees are framed as ideologically driven rather than economically sound policies that could adversely affect middle-income families and small businesses. Critics argue that these approaches are more about signaling virtue within certain political circles rather than yielding substantial economic benefits. The move to impose VAT on school fees is seen as detrimental to independent educational institutions, potentially leading to closures and loss of opportunities for students. Additionally, raising capital gains tax may lead investors to adjust their strategies negatively, thereby failing to generate expected revenue for the government while burdening everyday families seeking economic mobility.
Liam Halligan – columnist for the Sunday Telegraph, co-host of Planet Normal and author of Home Truths – returns to The Brendan O’Neill Show. Liam and Brendan discuss the early mistakes that will haunt the Labour government, how to fix the housing crisis and why the Tories shouldn’t try to chase the mythical ‘centre ground’.