New Economics Podcast What to make of the autumn budget - with James Meadway and Carys Afoko
Nov 26, 2025
In a lively discussion, economist James Meadway and political commentator Carys Afoko dissect the recent autumn budget's controversial aspects. They explore the fallout from an accidental document leak, revealing market reactions and budget secrecy challenges. The guests also address significant tax changes, like the abolishment of the two-child benefit cap, and touch on missed opportunities for transformative policies. Critiquing strategies, they highlight the need for better engagement with the public and tackle tough choices faced by the Labour party.
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Budget Leak Chaos
- The OBR accidentally released the budget report early, causing chaos and apologies.
- James Meadway and Carys Afoko described it as a human error that exposed weaknesses in process and resourcing.
Tax Raises Put Into 'Headroom'
- Much of the tax rise was parked as 'headroom' rather than spent into the economy.
- James Meadway warned this reduces demand and risks deeper stagnation by sucking money out of the economy.
Spend Rather Than Hoard Headroom
- Spend fiscal resources into cost-of-living relief rather than hoarding them as headroom during stagnation.
- Hannah Peaker argued this would better support households and growth now rather than deflationary saving.