In this Institute of Economic Affairs podcast, host Reem Ibrahim, Head of Media and Linda Whetstone Scholar, with guests Tom Clougherty, Executive Director, and Kristian Niemietz, Editorial Director. The conversation covers the UK's deteriorating fiscal situation with June borrowing hitting £21 billion - £7 billion more than last year - and the growing pressure on Chancellor Rachel Reeves to raise taxes. They examine new research on wealth taxes by Dan Neidle, showing how a UK wealth tax would likely be more damaging than similar policies in other countries due to the mobile nature of Britain's wealthy population and the absence of exemptions that make other systems workable.

The discussion moves to Conservative Party leader Kemi Badenoch's comments about Argentina's Javier Milei being "the template," exploring what radical spending cuts could look like in the UK context. Clougherty and Niemietz analyse Milei's 30% real-terms reduction in public spending through department closures, mass public sector layoffs, and subsidy elimination. They debate whether Britain needs to hit rock bottom before implementing fundamental reforms, examining the political constraints around pension spending, the triple lock, and the broader challenge of government overload where politicians take responsibility for far more than they can effectively deliver.

The conversation concludes with concerning polling data showing 40% of young people have a positive view of communism and 25% support fascism, extending into people's thirties and forties. They explore how economic stagnation, housing unaffordability, and government failure are driving political radicalisation toward both extremes. The hosts discuss why people blame capitalism or immigration rather than government restrictions on housing supply and economic growth, arguing that addressing these fundamental policy failures is essential to prevent further drift toward authoritarian ideologies on both left and right.

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