Nomad Capitalist Audio Experience Why HIGH Taxes are Driving away Entrepreneurs and Killing the UK Economy: Interview with Kwasi Kwarteng
Oct 8, 2025
Kwasi Kwarteng, former UK Chancellor of the Exchequer, dives into the pressing issues surrounding UK fiscal policy and taxation. He argues that high taxes drive entrepreneurs away, harming the economy. Kwarteng critiques the failed tax cuts of 2022 and discusses the political challenges of cutting spending. He warns that rising taxes could lead to a cycle of stagnation while highlighting the attractiveness of emerging markets in Africa. His insights extend to global trends, including the need for investor visas to foster entrepreneurship.
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Cut Taxes Only With Spending Restraint
- Kwasi Kwarteng says tax cuts must be credible by pairing them with spending restraint to convince markets.
- He argues rushed, large packages without demonstrating spending control undermine growth and credibility.
Spending Growth, Not Just Ideology, Drives Taxes
- Kwarteng warns spending growth, not ideology, often forces governments to raise taxes.
- He highlights bureaucratic expansion and new spending priorities as core drivers of higher taxes.
The Fiscal 'Doom Loop' Explained
- He describes a 'doom loop': rising spending leads to higher taxes which reduce growth and force yet more taxes.
- This vicious cycle undermines long-term economic prosperity and competitiveness.