Michael Simmons

The Spectator’s economics editor Michael Simmons is joined by the outgoing boss of the Institute for Fiscal Studies Paul Johnson and the CEO of the Resolution Foundation Ruth Curtice to understand why Britain’s economy is in such a bad place. Given it feels like we are often in a doom loop of discussion about tax rises, does this point to a structural problem with the British economy? And why are the public’s expectations so out of line with the state’s capabilities? Michael, Paul and Ruth talk about whether it’s fair for Labour to claim they’ve been ending austerity, the extent to which the effects of the covid-19 pandemic are still being felt and if tax rises are inevitable.

There were clear winners and losers in Rachel Reeves’s spending review yesterday but some of her announcements around capital spending and investment saw her dubbed the ‘Klarna Chancellor’ by LBC’s Nick Ferrari for her ‘buy now, pay later’ approach. Clearly trying to shake off the accusations of being ‘austerity-lite’, Labour point to longer term decisions made yesterday, such as over energy policy and infrastructure. But will voters see much benefit in the short-term? And, with the news today that Britain’s GDP shrank by 0.3% in April, will the decisions Rachel Reeves have to make only get harder before the October budget? Lucy Dunn speaks to Michael Simmons and Claire Ainsley, former director of policy to Keir Starmer and now at the Progressive Policy Institute.

There were few surprises in Rachel Reeves’s spending review today. Health was the big winner, with a £29bn increase in day-to-day spending and £39bn was announced to build social and affordable housing. The main eyebrow-raiser was the announcement that the Home Office will end the use of hotels for asylum seekers within this parliament; this could save £1bn or it could become Labour’s ‘stop the boats’ moment. The bigger picture was confusing – with increases measured against levels three years ago, is there really as much cash as Rachel Reeves wants you to think there is? And what’s the strategy behind it all?

Rachel Reeves has pledged a ‘new era of nuclear power’ as the government confirms a £14.2 billion investment in the Sizewell C nuclear plant in Suffolk. This comes on the eve of Labour’s spending review, with the government expected to highlight spending pledges designed to give a positive impression of Labour’s handling of the economy. However, as Michael Simmons tells James Heale and Lucy Dunn, there are signs that the government’s National Insurance hike is starting to bite. Plus – Nigel Farage has made two announcements in as many days. This morning, he unveiled Reform’s new chairman, former MEP Dr David Bull, taking over from the recently returned Zia Yusuf.

Shadow Chancellor Mel Stride delivered a speech today where he attempted to banish the ghost of Liz Truss and improve the Conservatives' reputation over fiscal credibility. And he compared leader Kemi Badenoch to Thatcher, saying she too struggled at first and will 'get better' at the dispatch box. LBC broadcaster Iain Dale and the Spectator's economics editor Michael Simmons join deputy political editor James Heale to unpack Stride's speech, talk about Labour's latest policy announcement over free school meals and discuss why both the main parties are struggling with fiscal credibility. Plus, Iain talks about his new book Margaret Thatcher and the myths he seeks to dispel. Why does he think the former PM still endures 35 years after she left office? Produced by Patrick Gibbons.