IEA Podcast

Read the full paper here: https://iea.org.uk/publications/2025-budget-briefing-tax-policy-preview-options-and-possible-impacts/With Chancellor Rachel Reeves set to deliver her Autumn Budget on Wednesday 26th November, IEA Economics Fellow Julian Jessop joins Managing Editor Daniel Freeman to discuss his new budget briefing paper. Jessop warns that the Chancellor faces a financial hole of up to £30 billion and will likely attempt to fill it through a combination of extending the freeze on personal tax thresholds and what he describes as a “dog’s breakfast” of smaller tax measures. While the largest component of the hole – around £20 billion – stems from a long-overdue downgrade to the OBR’s productivity forecasts, the remainder results from Labour’s own policy decisions, including abandoned welfare reforms and increased spending commitments.The discussion explores why attempting to raise £20 billion from numerous small tax changes is economically risky and likely to prove unreliable. Jessop argues that such a patchwork approach – potentially including higher Council Tax on expensive properties, closing Capital Gains Tax loopholes, imposing National Insurance on rental income, and increased sin taxes – creates greater uncertainty and unintended consequences than a simpler rise in broad-based taxes like income tax or VAT. He reveals that the government reportedly abandoned a “two up, two down” plan to raise income tax rates by 2p while cutting employee National Insurance by 2p, likely due to political concerns about breaching manifesto commitments rather than improved economic forecasts.Jessop makes the case that the root problem is spiralling public spending, which is forecast to rise by £200 billion over the next five years from £1,150 billion to £1,350 billion. He argues that simply restoring productivity in public services to pre-COVID levels could provide the same services for 4% less money, eliminating the need for tax rises altogether. The conversation also covers broader tax reform possibilities, including abolishing stamp duty and National Insurance, and why successive governments have failed to rationalise the VAT system despite cross-party agreement among economists that it’s deeply flawed. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe

We would like to apologise for the video quality issues that take place throughout the recording. This will be fixed for upcoming recordings.In this Institute of Economic Affairs podcast, IEA Managing Editor Daniel Freeman speaks with Kristian Niemietz and Julian Jessop about the upcoming autumn budget and Britain’s fiscal challenges. The conversation examines how bond market participants have become increasingly attuned to political instability, tracking everything from cabinet relationships to policy U-turns as indicators of fiscal risk. They discuss how competitive bond markets operate not on ideology but on risk assessment, and why claims of “bond market dictatorship” fundamentally misunderstand how financial markets work.The panel analyses Labour’s constrained position heading into the budget, caught between promises not to raise taxes on working people and the inability to cut spending due to backbench resistance despite a massive parliamentary majority. They examine various wealth tax proposals being floated, from mansion taxes to exit taxes on unrealised capital gains, explaining why international evidence suggests such measures consistently fall short of revenue expectations. The discussion covers the practical problems with revaluing council tax bands and the political toxicity of measures that would hit asset-rich but cash-poor homeowners.The conversation concludes with budget predictions, including the possibility that Labour might not just freeze tax thresholds but actually decrease them, potentially lowering the higher rate threshold to £46,000 and the additional rate to £100,000. This would create marginal tax rates exceeding 70% and hit millions more workers including senior nurses with higher rate tax for the first time. The panel debates whether the economic arguments can overcome the political toxicity of such moves as the Chancellor prepares for what they characterise as an economically and politically toxic budget. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe

n this episode of the IEA Podcast, host Daniel Freeman sits down with Jacob Mchangama to explore the fascinating history of free speech, from ancient Athens to modern social media. Jacob reveals how Socrates became a martyr for ideas he didn’t even believe in, why the Romans feared giving ordinary citizens a voice, and how medieval Islamic scholars championed free inquiry while Europe burned heretics. The conversation traces free speech through the Enlightenment, examining John Stuart Mill’s warnings about the tyranny of the majority and how these debates remain strikingly relevant today.Jacob explains why free speech has become increasingly polarised along political lines, with both left and right abandoning the principle when it becomes inconvenient. From Palestine Action protesters arrested in London to Trump administration pressures on media critics, the discussion reveals how quickly the targets of censorship can shift. He argues that legal protections for speech are ultimately downstream from culture, pointing to how American free speech exceptionalism is surprisingly recent, noting that people could be jailed for Communist Party membership in the 1950s or opposing World War I.The conversation concludes with Jacob’s call for a cross-partisan coalition committed to robust free speech protections, regardless of who’s wielding power. As he emphasises, abandoning free speech because people you disagree with invoke it is a shortsighted strategy that inevitably backfires when you’re on the receiving end. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe

Dr. Nima Sanandaji, a Swedish author and public policy expert, challenges the common myths surrounding Scandinavian socialism. He reveals that Sweden's economic success stemmed from a century of low taxes and free market capitalism, not socialism. The discussion highlights data showing that lower-tax countries enjoy better welfare outcomes, education, and employment rates. Sanandaji also warns about the pitfalls of high-tax welfare states and offers policy lessons from successful low-tax nations like Ireland and Malta.

Welcome to Economics 101, a new series designed to distill the fundamental principles of economics into clear, easy-to-understand explanations. Join Dr. Stephen Davies as he breaks down complex economic concepts using simple analogies and real-world examples, making economics accessible to everyone regardless of their background. Whether you’re a student, professional, or simply curious about how the economy works, this series will equip you with the essential knowledge to understand the economic forces that shape our daily lives.In this episode, Dr. Davies explores the most foundational concept in all of economics: scarcity. But scarcity doesn’t mean what most people think it means. It’s not about things being rare - it’s about resources requiring effort to acquire and transform, and the fact that using them for one purpose means you can’t use them for another. This simple insight leads to what economists call “the economic problem”: how do we decide what to produce with limited resources when people want different things? Dr. Davies explains why the price mechanism in competitive markets has proven to be the most efficient solution to this fundamental challenge, far more effective than central planning or consensus-building. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe

In this Institute of Economic Affairs podcast, Managing Editor Daniel Freeman is joined by Editorial Director Kristian Niemietz and Energy Analyst Andy Mayer. The trio discuss the BBC’s turbulent week following Director-General Tim Davie’s resignation over misleading edits of a Trump speech, examining long-standing questions about BBC bias and whether the licence fee funding model remains justifiable in the streaming age.The conversation moves to Labour’s chaotic U-turns on child benefit caps and income tax thresholds, with Kristian unpacking why the government keeps reversing course on key policies. They analyse whether these flip-flops reflect political inexperience, poor planning, or deeper issues with Labour’s fiscal strategy and spending priorities.The episode concludes with Andy Mayer’s analysis of Britain’s potential nuclear renaissance, as Ed Miliband announces plans to build small modular reactors with Rolls-Royce. While welcoming the ambition, Andy warns that Britain’s regulatory overreach and history of cost overruns could undermine the project. The discussion covers whether Rolls-Royce can compete globally, concerns about protectionism, and why so many environmentalists remain hostile to nuclear power despite its zero-carbon credentials. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe

Join Lord Kamall in conversation with Lord Matthew Elliott, one of Britain’s most prolific policy entrepreneurs, in this captivating episode of Entrepreneurial Minds. From selling magazine ads as a student at LSE to founding the Taxpayers Alliance while ducking into phone boxes in Parliament’s “dungeon,” Matthew shares the extraordinary journey of creating multiple influential campaign organisations. Discover how he built Britain’s most effective taxpayer advocacy group from scratch, navigated the Brexit campaign with Vote Leave, and founded the Jobs Foundation to help disadvantaged people into work. This isn’t your typical business startup story, it’s about entrepreneurship in the political arena, where success is measured in policy change rather than profit margins.Matthew reveals the secrets behind effective grassroots campaigning, the art of media relations, and why he believes successful campaign groups need enemies as much as allies. He discusses his controversial stance on Trump, the influence of his self-made grandfather versus his social worker father, and offers candid advice for aspiring policy entrepreneurs. Whether you’re a budding activist, interested in political campaigning, or simply curious about how ideas become movements, this conversation provides rare insights into the mechanics of political change.Recorded at the Institute of Economic Affairs in partnership with the Vinson Center at the University of Buckingham and the Buckingham Enterprise Innovation Unit, this is the second in our series exploring different forms of entrepreneurship. Subscribe for more conversations with entrepreneurs who are changing Britain, one bold idea at a time. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe

In this Institute of Economic Affairs event, Managing Editor Daniel Freeman interviews Dr. Kit Kowol about his book “Blue Jerusalem: British Conservatism, Winston Churchill, and the Second World War” published by Oxford University Press. The conversation examines the surprisingly dynamic and idealistic aspects of the British right during World War Two and their competing visions for post-war Britain, challenging the myth that only Labour had ideas for the home front while Conservatives focused solely on military strategy.Kit discusses the conservative intellectual renaissance that occurred during the war years, explaining how the absence of strong party control allowed a flowering of bottom-up thinking through journals, pamphlets, dining clubs and proto-think tanks. He explores how different factions within the Conservative Party fought over Britain’s future, from those advocating for economic planning to free marketeers warning against socialism. The conversation covers the debate between those who wanted a “people’s war” with revolutionary citizen armies versus professional military leadership, and how these wartime arguments shaped Britain’s political trajectory.The discussion concludes with reflections on why the Conservatives lost in 1945 despite wartime achievements, the post-war consensus that marginalised free market voices, and why the Conservative Party cannot simply look to the past for answers to today’s challenges. Kit argues that modern Britain is radically different from 1945 or even 1997, requiring fresh thinking rather than historical parallels. This event took place at the IEA, the organisation whose intellectual origins emerged from the same wartime milieu Kit documents in his book. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe

In this Institute of Economic Affairs podcast, IEA Head of Media Reem Ibrahim interviews Lord David Frost, the incoming Director General and Ralph Harris Fellow at the IEA. The conversation covers Lord Frost’s unusual political journey from Labour Party member to free marketeer, shaped by his experiences as a civil servant in Brussels during the 1990s. He discusses how witnessing the EU’s centralisation drive and the genesis of the single currency revealed the problems of politics overwhelming rational economics.Lord Frost explains his transition from the civil service to political life, culminating in his role negotiating Brexit and his subsequent elevation to the House of Lords. He reflects on the failures of the Brexit process, particularly the gutting of regulatory reform opportunities and the retention of EU laws that should have been scrapped. The discussion examines why Brexit hasn’t delivered the economic benefits promised, with Lord Frost identifying government dysfunction, excessive taxation, and regulatory burdens as key barriers rather than Brexit itself.The interview concludes with Lord Frost’s vision for the IEA and the free market movement. He argues that Britain needs fundamental solutions to its dysfunction in housing, energy, public services, and welfare. Lord Frost advocates for preparing the intellectual groundwork through serious research that explains how markets work better, similar to what the IEA achieved in the 1970s. He believes the movement must focus less on short-term tactical wins and more on winning the long-term war of ideas, making free market solutions the obvious answer when Britain reaches its crisis point. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe

In this Institute of Economic Affairs podcast, Head of Media Reem Ibrahim speaks with Editorial Director Kristian Niemietz and Managing Editor Daniel Freeman about three major political developments. The conversation covers Chancellor Rachel Reeves’s unprecedented pre-budget speech delivered at 8pm on Tuesday evening, Nigel Farage’s shift towards Thatcherism, and socialist Zohran Mamdani’s election victory in New York.The discussion examines Reeves’s hints at significant tax increases ahead of the budget, with Daniel explaining how the government may raise between £20-30 billion through various measures. They analyse the possibility of increasing the basic rate of income tax for the first time since 1975 under Denis Healey, which would breach Labour’s 2024 manifesto commitments. The impact of last year’s employer National Insurance contributions hike is explored, particularly the damage to youth employment and job vacancies. Kristian contextualises the persistent budget deficit and record-high public spending and taxation, arguing that broad-based tax increases were inevitable given Labour’s unwillingness to cut spending.The podcast concludes with analysis of Zohran Mamdani’s New York mayoral victory and its implications for Democratic Socialists of America. They discuss his proposals for state-run grocery stores and free bus travel, debating whether this represents a genuine socialist revival or a localised phenomenon. The conversation explores potential spillover effects to UK politics, including Green Party politicians like Zack Polanski attempting to ride similar socialist waves, and whether international political trends can successfully transfer across different contexts. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe