The Rest Is Money 244. Why Lord Frost wants a Thatcher revival
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Jan 19, 2026 Lord David Frost, former UK diplomat and chief Brexit negotiator, discusses the future of free-market reforms as the head of the Institute of Economic Affairs. He believes Brexit's benefits are yet to materialize and outlines a ten-year plan to shrink the state and cut taxes. Frost critiques Liz Truss's approach while advocating for measured economic reforms. He also delves into his views on climate realism, the balance of public and private investment, and emphasizes the IEA's potential in shaping Britain’s economic landscape once again.
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Plan A Ten-Year Fiscal Reset
- Prepare a long, credible 10-year programme to shrink the state's role gradually and regain market confidence.
- Pair annual, repeatable spending cuts with gradual tax reductions and rolling back regulation to avoid market panic.
On Liz Truss's Mini-Budget Approach
- Lord David Frost says he wasn't at the IEA in 2022 and criticised Liz Truss's rapid approach as 'ham-fisted'.
- He still endorses the goals but stresses the need for better explanation and pacing.
Show Credibility With Modest Cuts First
- Start with clear, modest initial spending cuts to show fiscal credibility and repeat them year on year.
- Use supply-side reforms and deregulation simultaneously to counter fiscal squeeze and mobilise private investment.