The Great Budget Betrayal: Ex-Chancellors Unpack Labour’s £70B Tax Grab and “Madness” Manifesto

In this exclusive post-budget episode, former UK Chancellors Jeremy Hunt and Kwasi Kwarteng dissect the recent budget announced by Labour, addressing their thoughts on key policy shifts and the implications for the UK's economic future. They share their surprise and disappointment, particularly regarding Labour's approach to taxation and welfare spending, asserting that the internal debates within the party led to decisions that sacrificed growth for political considerations.

Hunt expresses feeling betrayed by the Labour Party, which he thought would maintain a pro-business stance but instead focused on welfare spend. He emphasizes the importance of fostering growth, noting the UK's significant economic fundamentals, which he believes are overshadowed by ineffective policies. Kwarteng draws attention to the tax increases in the budget, criticizing the number of measures that will raise taxation while adhering to existing manifesto promises regarding income tax and national insurance.

Discussion points include their concerns about stagnation, the leftward pull of Labour politics, and the implications of the mansion tax on property valuations. They also address worries surrounding over-dependence on welfare state policies, emphasizing the need for reform and efficiency in government spending.

Both Kwarteng and Hunt criticize Labour's strategy of blaming Conservatives for current economic challenges while failing to articulate a coherent growth plan. They argue that lasting solutions require addressing government spending, engaging in productive discourse with unions, and ultimately being brave enough to make unpopular decisions that prioritize sustainability. The episode encapsulates their concerns for the UK economy amidst shifting political landscapes and fiscal policies.