Jacob Rees-Mogg on Why The UK's Economic System Is Broken | IEA Interviews

In this Institute of Economic Affairs podcast, IEA Executive Director Tom Clougherty interviews Sir Jacob Rees-Mogg, former Minister of State for Brexit Opportunities and Government Efficiency, and former Business Secretary. The conversation covers the exodus of wealth creators from Britain, examining how tax policies - particularly changes to non-dom status initiated by successive governments - have driven wealthy individuals and businesses overseas. They also discuss the broader issues of high taxation, economic growth, and government inefficiency.Sir Jacob shares his views on government spending and the need for substantial reforms, identifying specific areas like overseas aid, carbon capture and storage, and Bank of England quantitative easing as targets for cuts. He criticises the civil service as "bloated" and argues for reforming capital taxes, especially inheritance tax which he believes should be abolished. The discussion also covers missed Brexit opportunities, including the gutting of the retained EU law bill after Boris Johnson's departure from government.The interview concludes with an examination of the UK housing crisis and planning reform. Sir Jacob advocates for a market-focused approach to housing that would meet actual demand for larger homes with gardens rather than high-density developments. He criticises the current planning system as overly bureaucratic and argues for scrapping the 1947 Town and Country Planning Act. The conversation ends with thoughts on the future of right-wing politics in Britain and whether a unified conservative agenda could emerge from the current political landscape.The Institute of Economic Affairs is an educational charity, it does not endorse or give support for any political party in the UK or elsewhere. Our mission is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems. 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