Disruptors The Great Budget Betrayal: Ex-Chancellors Unpack Labour’s £70B Tax Grab and “Madness” Manifesto
Dec 1, 2025
Kwasi Kwarteng, former UK Chancellor and Conservative politician, joins Jeremy Hunt to dissect Labour's first two budgets. They reveal how a staggering £70 billion tax hike might impact UK growth, discussing the pitfalls of freezing housing taxes that could stifle the market. Kwarteng critiques Labour's 'madness' approach to welfare and warns about excessive taxation hindering investment. The duo also debates why Labour won't cut spending and reflects on the chaotic leaks tarnishing the UK's image.
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Growth Sacrificed For Party Politics
- Jeremy Hunt felt betrayed because he expected Labour to be pro-business and growth-focused.
- He warns the budget sacrificed growth to internal party welfare politics.
Fiscal Drag Expands The Tax Base
- Kwasi Kwarteng highlighted the large increase in people paying higher tax rates compared to the late 1980s.
- He warns that freezing thresholds will steadily pull more households into higher bands.
Don’t Hamper Property Market Recovery
- Avoid measures that gum up the property market because they stall recovery when interest rates fall.
- Policymakers should not introduce taxes that send negative signals to enterprise and wealth creation.