Wealth Taxes Won't Fix Broken Britain

This week on the IEA Podcast, Lord Frost, Dr Kristian Niemietz and host Callum Price dig into the Bank of England’s decision to hold rates at 3.75% — and whether the Governor should still have his job after the near 10% inflation disaster of 2021-22. With three wildly different scenarios on the table and the spectre of rates hitting 5.5%, the question is whether the Bank is still too soft on inflation and too cosy with a Government that desperately needs good news.Then the team turns to wealth taxes. Kristian has published a new IEA paper demolishing the case for them — and the arguments are sharper than you might expect. Britain already raises more from wealth-related taxes than almost any OECD country. Wealth inequality has been broadly flat since 1990. And even the most optimistic wealth tax proposal would raise, at best, 1% of GDP — nowhere near enough to fund the endless list of promises its advocates attach to it. The real question is why this idea has consumed so much of the national conversation when it solves almost nothing.Finally, the Government’s plan to effectively ban traditional tumble dryers in favour of slower, less effective heat pump models. Is this net zero policy, EU alignment by stealth, or simply Ed Miliband picking your appliances for you? The team argues it is a perfect microcosm of everything wrong with British economic policy — a rich country solution imposed on a country that simply cannot afford it. Subscribe to the IEA on YouTube and on Substack at iea.org.uk for more.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