The Three Groups Destroying Britain | IEA Podcast

In this Institute of Economic Affairs podcast, IEA’s Callum Price and Editorial Director Kristian Niemietz are joined by Lord Frost, who discusses why Britain is losing the argument for classical liberalism and free markets. Lord Frost identifies three distinct groups opposing free market economics: fantasy leftists promoting modern monetary theory, blue labour protectionists advocating industrial policy, and establishment economists favouring high public investment and state intervention. The conversation examines which of these groups classical liberals could potentially form coalitions with and why anti-capitalist sentiment prevents meaningful overlap with the progressive left.The discussion turns to Brexit and regulatory alignment, with Lord Frost criticising the government’s failure to capitalise on post-Brexit regulatory freedoms. He argues that Britain’s continued adherence to EU regulations, despite having the legal ability to diverge, creates unnecessary trade barriers whilst delivering none of the benefits of genuine regulatory independence. Niemietz highlights the paradox of maintaining identical legal frameworks to the EU whilst being treated as a third country, comparing it to requiring professional translation between British and American English.The podcast concludes with predictions for 2025, including Lord Frost’s forecast that UK economic growth will fall below 1% as the consequences of recent policy decisions materialise. The panel discusses the likelihood of further tax rises in the next budget, potentially driven by continued NHS underperformance and waiting list pressures. Niemietz predicts that at current rates, waiting lists would not return to pre-pandemic levels until 2037, likely triggering emergency spending injections and accompanying tax increases to fund the health service.The Institute of Economic Affairs is a registered 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.The views represented here are those of the speakers alone, not those of the Institute, its Managing Trustees, Academic Advisory Council members or senior staff. 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