IEA Podcast

In this Institute of Economic Affairs Podcast, Director of Communications Callum Price hosts a discussion with IEA Executive Director Tom Clougherty and Managing Editor Daniel Freeman on Britain's escalating fiscal crisis and the government's response. The conversation examines why UK borrowing costs have reached their highest levels since 1997 - famously dubbed "the highest since Geri Halliwell left the Spice Girls" - making Britain consistently the worst performer among G7 countries for government debt costs.The panel dissects the three key factors driving this crisis: declining investor confidence in fiscal policy credibility following government U-turns on Winter Fuel Payments and benefit reforms, the Bank of England's continued quantitative tightening programme, and persistently high UK inflation rates. With annual interest payments now reaching £110 billion - five times the entire policing budget and double defence spending - the government faces a potential £25-50 billion fiscal gap. Clougherty explains how this creates a dangerous "fiscal doom loop" where higher borrowing costs force more borrowing, which drives rates even higher. The discussion explores proposed solutions including National Insurance contributions on landlords' rental income, though Freeman warns this could drive more landlords from the market and worsen housing supply. They also examine proposals for windfall taxes on banks' quantitative easing reserves, with Clougherty arguing this resembles "bank robbers' modus operandi" and could increase borrowing costs for ordinary consumers.The podcast concludes with analysis of Trump's dramatic shift toward state capitalism, including government stakes in Intel and profit-sharing deals with Nvidia. Clougherty highlights how this represents a fundamental departure from free market principles, with Trump explicitly stating he will help companies "willing to make lucrative deals" with his administration. The panel discusses how this personalised industrial policy transforms business-government relations and marks a significant cultural shift in the Republican Party, with formerly mainstream conservative voices now reluctant to criticise state intervention in private markets. Get full access to Institute of Economic Affairs | Insider at insider.iea.org.uk/subscribe

In this Institute of Economic Affairs interview, our Executive Director Tom Clougherty interviews Professor Cass Sunstein, former Obama administration official and co-author of "Nudge", discussing his new book "On Liberalism: In Defence of Freedom". The conversation explores Sunstein's "big tent liberalism" that encompasses figures from Reagan to Roosevelt, examining how liberalism can unite diverse political perspectives around core commitments to pluralism, freedom, and the rule of law while accommodating different views on economic policy and social issues.Sunstein defends his concept of "experiments in living" as central to liberal philosophy, drawing from John Stuart Mill's ideas to argue that liberalism should protect people's freedom to pursue different ways of life, from entrepreneurial ventures to alternative communities. He discusses how this principle applies to both social freedoms and economic liberty, criticising excessive occupational licensing restrictions that prevent people from pursuing their chosen paths. The conversation also examines Hayek's contributions to liberal economics, particularly his insights about dispersed knowledge and the price system, while exploring how behavioural economics can complement rather than contradict Hayekian thinking.The interview concludes with Sunstein's defence of "nudging" as a liberal approach to policy-making that respects individual choice while helping people make better decisions for themselves. He addresses criticisms from both libertarians who see nudges as paternalistic and progressives who want more aggressive interventions, arguing that educative and architectural approaches can guide people toward better outcomes without coercion. Despite challenges from both illiberal left and right movements, Sunstein remains optimistic about liberalism's future, suggesting that threats to liberal values are causing people to rediscover their importance.Pre-order “On Liberalism: In Defence of Freedom” here. Get full access to Institute of Economic Affairs | Insider at insider.iea.org.uk/subscribe

In this Institute of Economic Affairs Podcast, Head of Media Reem Ibrahim hosts a discussion with IEA Executive Director Tom Clougherty and Managing Editor Daniel Freeman on the government's upcoming budget and various tax policy proposals currently being floated. The conversation covers a "tax proposal extravaganza" including potential reforms to property taxation, capital gains tax on primary residences, pension lump sum changes, and inheritance tax modifications. They examine how these proposals might affect the UK's fiscal position ahead of the anticipated autumn budget, with the government facing a significant fiscal gap of potentially up to £50 billion.The discussion delves into the economic impacts of stamp duty and why replacing it with a proportional property tax could benefit the housing market, though the political challenges remain substantial. Clougherty explains how stamp duty creates harmful distortions by discouraging property transactions and keeping people in unsuitable homes, while Freeman highlights the contradiction between economically damaging taxes often being less politically unpopular. They also analyse proposals for capital gains tax on primary residences, concluding it would likely raise little revenue due to its similar distortionary effects to stamp duty, and examine potential changes to pension tax relief and inheritance tax rules.The podcast concludes with an examination of recent research on universal basic income trials in the United States, where studies have shown disappointing results despite significant financial investment. Freeman explains how these trials, involving hundreds of participants receiving up to $1,000 monthly, failed to produce the expected improvements in health, education, or mental wellbeing outcomes, with the only consistent effect being reduced work hours. The discussion touches on how these findings relate to the UK's current benefit system and the importance of work requirements and conditionality in welfare provision. Get full access to Institute of Economic Affairs | Insider at insider.iea.org.uk/subscribe

In this Institute of Economic Affairs briefing, our Head of Media, Reem Ibrahim, interviews Chris Snowdon, Head of Lifestyle Economics, about his new discussion paper "Anti-Capitalism and Public Health." The conversation examines how public health discourse has evolved from targeting specific industries like "big tobacco" and "big food" to attacking what academics call "commercial determinants of health" - essentially any profit-making enterprise. They discuss how major institutions including The Lancet, British Medical Journal, and World Health Organisation have embraced anti-capitalist rhetoric, with some academics viewing economic growth itself as harmful to public health.Snowdon explains how public health experts have expanded their scope beyond traditional health concerns to critique free trade, economic growth, and commercial activities generally. He highlights concerning examples, including a former WHO advisor who praised China's Covid lockdowns as proof that "switching off capitalism protects us from ourselves." The discussion reveals how this movement draws inspiration from "Doughnut Economics" and promotes policies that would fundamentally reshape economic systems rather than address specific health issues.The interview concludes with concerns about the political influence of public health campaigning on British policy. Snowdon argues that politicians have proven susceptible to activists claiming scientific authority while pursuing anti-business agendas, resulting in policies like minimum alcohol pricing, sugar taxes, and generational tobacco bans. He warns that the public should understand the ideological motivations behind campaigns presented as neutral, evidence-based public health interventions.Read the full publication here.Read the press release here. Get full access to Institute of Economic Affairs | Insider at insider.iea.org.uk/subscribe

In this Institute of Economic Affairs interview, the IEA’s Director of Communications Callum Price sits down with Sir Simon Clarke, former Conservative MP, Treasury Chief Secretary, and current Director of Onward. The conversation tackles Britain's housing crisis, with Clarke arguing the UK is 4-5 million homes short and criticising government climbdowns on planning reform. He advocates for densifying cities while challenging the "brownfield only" mindset, calling for a more realistic approach to building on lower-value countryside sites including golf courses and poor agricultural land.Clarke delivers a stark assessment of Britain's economic challenges, warning that the state is spending too much and describing a cultural shift where wealth creation has become viewed with suspicion rather than celebrated. He identifies a "doom loop" where excessive spending requires higher taxes on wealth creators, damaging growth and necessitating even more spending. The discussion covers welfare reform, with Clarke highlighting that 1.2 million more people are now on health-related benefits since February 2020, calling this statistically implausible and economically damaging.The interview concludes with Clarke's prescription for economic revival: aggressive housing supply reform, curbing state spending including scrapping the pension triple lock, tax cuts starting with reversing National Insurance increases, and regulatory reset embracing Brexit opportunities. He argues the next Conservative government must leave the European Convention on Human Rights to restore democratic control and calls for a fundamental cultural reset similar to the 1980s transformation, warning that Britain cannot assume prosperity as of right but must actively pursue policies that enable success. Get full access to Institute of Economic Affairs | Insider at insider.iea.org.uk/subscribe

In this Institute of Economic Affairs podcast, the IEA’s Head of Media Reem Ibrahim interviews Stan Veuger, Senior Fellow in Economic Policy Studies at the American Enterprise Institute. The conversation examines the dramatic shift in Trump's second-term trade policy, including unprecedented 25% tariffs on Canada and Mexico, the "reciprocal tariffs" announced in April affecting virtually every country globally, and the resulting economic turbulence that saw US GDP growth slow from 2.8% to just 1.2%. Veuger explains how these policies represent Trump's longstanding mercantilist worldview rather than strategic negotiating tactics, and discusses the ongoing legal challenges that could potentially overturn the tariff regime.The discussion explores the macroeconomic consequences of both trade and immigration restrictions, with Veuger detailing how the administration has effectively reduced net migration to near zero through deportation efforts and eliminating legal pathways like humanitarian parole programs. He argues this represents a significant drag on economic growth, contributing to the broader slowdown alongside trade disruptions. The conversation covers which industries are most affected, from manufacturing sectors dependent on intermediate goods imports to service industries that rely on immigrant labor.Veuger concludes by examining the political landscape around these policies, noting the limited Congressional appetite for challenging Trump's approach and why legal challenges may offer the best hope for rolling back protectionist measures. He discusses the fiscal implications of tariff revenue collection, the constitutional questions around executive power in trade policy, and offers his predictions for potential policy reversals under future administrations. The interview provides crucial insights into how economic nationalism is reshaping American trade and immigration policy with global implications. Get full access to Institute of Economic Affairs | Insider at insider.iea.org.uk/subscribe

In this Institute of Economic Affairs podcast, Director of Communications Callum Price is joined by Editorial Director Kristian Niemietz and Managing Editor Daniel Freeman for a wide-ranging discussion on Britain's current challenges. The conversation covers the heated debate around Fraser Nelson's controversial Times article on crime statistics, examining why public perception of rising crime clashes with data showing overall decreases, and the role of social media and visible crimes like shoplifting in shaping these perceptions.The discussion moves to economic policy constraints, analysing Stephen Bush's Financial Times piece on the post-Truss fallout and Britain's relationship with OBR forecasts. Niemietz and Freeman examine whether the UK has become too slavish to independent economic projections and how the obsession with "progressive" tax policies creates dangerous distortions in the system. They debate the Resolution Foundation mindset that every policy must benefit lower earners more than higher earners, even when this creates cliff edges and economic inefficiencies.The podcast concludes with a critical examination of Britain's deteriorating free speech landscape, triggered by the US State Department's human rights report citing the UK for restrictions on expression. From the Online Safety Act to 12,000 annual arrests for online speech, the hosts discuss how well-meaning legislation has created a self-reinforcing spiral of censorship. They argue that without principled defence of free speech from political leaders, Britain risks sliding further into authoritarianism through the accumulation of seemingly reasonable individual restrictions.Fraser Nelson’s Times article can be found here.Stephen Bush’s FT article can be found here.Read more about the US State Department’s human rights report here. Get full access to Institute of Economic Affairs | Insider at insider.iea.org.uk/subscribe

In this Institute of Economic Affairs Free the Power podcast, the IEA’s Andy Mayer interviews Nicholas Leighton-Hall from the Marginal Cost of Everything blog about the recent government decision to reject zonal pricing for UK electricity markets. The conversation examines how political considerations overtook economic rationality in this crucial energy policy decision, exploring the complex dynamics between electricity generation in Scotland, demand in southern England, and the costly constraint payments that result from current market structures.Nick explains how zonal pricing could have addressed fundamental inefficiencies in the UK's electricity system, including the billions spent annually on constraint payments - where wind farms are paid not to generate electricity when transmission infrastructure can't move power from Scotland to high-demand areas in the south. The discussion reveals how this policy could have been a genuine leveling-up measure, with lower electricity prices in more deprived northern areas and higher prices in affluent southern constituencies.The interview explores the behavioural economics behind the government's decision-making, examining how loss aversion and political pressures from previous U-turns on winter fuel payments and welfare reforms created a pattern of backing down from difficult decisions. They discuss how the government's alternative of "reformed national pricing" using transmission charges attempts to replicate zonal pricing benefits through central planning rather than market mechanisms, and why this approach may prove ineffective in practice. Get full access to Institute of Economic Affairs | Insider at insider.iea.org.uk/subscribe

In this Institute of Economic Affairs panel discussion, Dr. Kristian Niemietz chairs a conversation on "Government and Economic Growth in the 21st Century" with Dr. Stephen Davies, Senior Education Fellow, Julian Jessop, Economics Fellow, and Cento Veljanovski, IEA Law and Economics Fellow. The discussion examines Britain's 18-year period of economic stagnation since 2007, exploring why an entire generation has never experienced meaningful economic growth. The panel addresses the political consequences of zero-sum economics, where distributional conflicts have poisoned political discourse as politicians promise benefits without the growth needed to fund them sustainably. The conversation covers the productivity puzzle affecting most Western economies, with Julian Jessop highlighting how Britain's debt could explode to 649% of GDP within 50 years without productivity improvements. Stephen Davies argues that politics has shifted from economic efficiency arguments toward identity-based divisions between nationalism and cosmopolitanism, while noting that most voters across the spectrum still expect government spending without corresponding taxes. The panel discusses the distortive effects of prolonged ultra-low interest rates and quantitative easing, which created zombie companies and asset price bubbles while encouraging fiscal complacency. Cento Veljanovski draws on Hayek's work to examine where the line should be drawn between market and state, arguing that liberalism faces an identity crisis in an era where big government is blamed on "neoliberalism" despite extensive state intervention since 2008. The discussion concludes with debate over potential solutions, from radical reforms like abolishing central banks to addressing the "shadow public sector" of bureaucratic gatekeepers. The panel expresses pessimism about coalition-building with populist movements, suggesting that economic arguments alone may no longer be sufficient to advance liberal reforms in the current political climate. Get full access to Institute of Economic Affairs | Insider at insider.iea.org.uk/subscribe

In this IEA podcast, Managing Editor Daniel Freeman interviews Tom Clougherty, Executive Director, and Dr. Stephen Davies, Senior Education Fellow. The conversation examines Britain's looming £50 billion fiscal black hole identified by the National Institute of Economic and Social Research, exploring why Rachel Reeves will miss her fiscal targets and what this means for the UK's financial future. They discuss the structural problems driving persistent deficits, from an ageing population to productivity failures, and why traditional austerity approaches have failed to solve the underlying issues.The discussion covers potential solutions to Britain's fiscal crisis, including radical reforms to pensions, healthcare, and welfare systems. Tom advocates for broad-based VAT reform as the least distortive way to raise significant revenue, while Steve argues for fundamental restructuring of how the state operates. They examine why politicians struggle to implement necessary changes and whether the UK has moved beyond the point where incremental reforms can make any meaningful difference to the public finances.The conversation concludes with analysis of Labour's socio-economic duty proposals and their impact on civil service recruitment and school admissions. They also explore a new report on AI's role in HR departments and whether this signals the beginning of widespread automation of white-collar professional jobs. The discussion touches on whether technological disruption will create mass unemployment or simply transform the nature of work in Britain's economy. Get full access to Institute of Economic Affairs | Insider at insider.iea.org.uk/subscribe