Economist Podcasts Oh Keir! Labour’s torrid first year
108 snips
Jul 4, 2025 
Matthew Holehouse, British politics correspondent, and Vishnu Padmanabhan, Asia correspondent, dive into the struggles of Britain's Labour government in its first year. They dissect the party's failure to meet public expectations and internal strife affecting its unity. The discussion shifts to Bangladesh's political unrest post-Sheikh Hasina, shedding light on the new challenges under interim leadership. They also explore the luxury car market, contrasting Ferrari's success with the struggles of other automakers, particularly in transitioning to electric vehicles.
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Labour's Policy Reversals Expose Crisis
- Labour's flagship welfare reform was heavily diluted due to internal rebellion, wiping out most intended savings.
- These policy U-turns highlight deeper governmental crises beyond mere unpopular decisions.
Labour's Mixed Immigration and Economy Record
- Labour's key election pledges included economic stability amid a challenging outlook and controlling immigration.
- Despite sharp drops in regular migration, irregular migration and asylum backlogs remain significant problems.
Starmer's Diplomatic and Defence Push
- Keir Starmer has improved UK relations with the US and EU and promised to increase defence spending.
- Defence spending aims to rise from 2.3% to 2.6% of GDP by 2027 and reach 3.5% by mid-next decade.