logo
episode-header-image
Jul 2024
34m 40s

Labour confronts £20bn black hole

Financial Times
About this episode

The chancellor Rachel Reeves is about to confront the British public with the size of the black hole in the country’s finances. A funding shortfall of about £20bn is likely to lead to tax rises at the Budget later this year. So — how to fix the problem? The FT’s political editor George Parker sits down with colleagues Stephen Bush and Robert Shrimsley to consider the government’s options. Plus, the FT’s infrastructure correspondent Gill Plimmer outlines the scale of the debacle that is the cancellation of the high-speed rail link between Birmingham and Manchester. 


Want more? Free links:


Rachel Reeves to pave way for UK Budget tax rises in ‘spending audit’


Expect a Tory leadership race mired in bitter and personal fights


Thames Water’s credit rating slashed to ‘junk’


Britons may need to be put off taking trains due to HS2 curtailment, watchdog says 


Follow George on X @GeorgeWParker, Stephen @stephenkb. Robert @robertshrimsley, Gill @gillplimmer1


Sign up for 30 free days of Stephen Bush's Inside Politics newsletter, winner of the World Association of News Publishers 2023 ‘Best Newsletter’ award: 

https://ft.com/insidepoliticsoffer


Presented by George Parker. Produced by Audrey Tinline.

The executive producer is Manuela Saragosa. Audio mix and original music by Breen Turner. The FT’s global head of audio is Cheryl Brumley. 


Read a transcript of this episode on FT.com




Hosted on Acast. See acast.com/privacy for more information.

Up next
Aug 22
The mess in the NHS
England’s NHS is in a ‘critical and deteriorating condition’ - those are the words of Lord Darzi who investigated the state of the NHS for the new Labour government last year. In response, Starmer unveiled a ten year plan to fix it focusing on delivering three big shifts in healt ... Show More
35m 42s
Aug 15
Starmer's superpower: soft power?
Maga arrived in Chipping Norton this week, heralding an intense round of British diplomacy ahead of the Trump-Putin summit in Alaska on Friday. Ukraine is top of the agenda and both Prime Minister Keir Starmer and foreign secretary David Lammy have been doing their bit liaising b ... Show More
27m 53s
Aug 8
Introducing Swamp Notes: The real cost of gutting USAID
Political Fix is on a break this week. In its absence, we're taking the opportunity to introduce you to its sister podcast, Swamp Notes, the weekly US politics podcast from the Financial Times. Six months after the Trump administration gutted the US Agency for International Devel ... Show More
19m 4s
Recommended Episodes
Oct 2024
UK Labour’s Budget borrows big, taxes more
Microsoft’s quarterly revenue rose 16% on strong cloud computing demand, the UK’s Labour party reveals bold tax increases and borrowing, and the US economy grew at an annualised rate of 2.8% in the third quarter. Plus, critics cry foul over a proof of citizenship law in Arizona.  ... Show More
13m 15s
Jul 2024
Is there really no money left?
Chancellor Rachel Reeves says she's discovered a "£20bn black hole" in the public finances left by the previous government.      In the Commons, she set out her plans to address the funding shortfall through spending cuts, as shadow chancellor Jeremy Hunt accused Labour of using ... Show More
17m 57s
Jun 11
Winners and losers of UK spending review
The FT’s George Parker explains the winners and losers in UK chancellor Rachel Reeves’ spending review, the UK imposed the first western sanctions against Israeli government ministers,and Citigroup is poised to increase provisions for potential bad loans by hundreds of millions o ... Show More
10m 57s
Oct 2024
Japanese PM’s uphill battle to win back voters
The French government has proposed a budget for next year with some €60bn worth of spending cuts and tax increases, and Hurricane Milton ploughed across Florida on Wednesday. US inflation fell to 2.4 per cent in September. Plus, we look ahead to Japan’s early elections later this ... Show More
11m 35s
Nov 2024
The $250bn in corporate taxes riding on US election
Chinese authorities are demanding wealthy individuals and companies double-check their taxes for unpaid liabilities, and the largest US companies are facing two starkly different financial futures after the election. The UK Conservative party elects right-wing Kemi Badenoch as le ... Show More
11m 24s
Nov 2024
UK Budget spooks bond markets
Apple reported solid revenue growth in the past quarter, and investors are worried about the additional borrowing set out in UK chancellor Rachel Reeves’ Budget. The US warned that North Korean troops are expected to enter combat alongside Russia’s army in the coming days, and Sp ... Show More
9m 20s
May 1
Honey, I shrunk the economy
Microsoft posted better than expected quarterly earnings on Wednesday, Spain is trying to figure out what caused a massive power outage, and the Conservatives are bracing for heavy losses in local England elections. Plus, the FT’s Claire Jones explains what we can take away from ... Show More
10m 30s
Jan 2025
Bond vigilantes target government spending
The EU is preparing for president-elect Donald Trump to roll back his predecessor’s executive orders, bond markets have entered a new era of antagonism with governments, and insurers are bracing for losses of as much as $20bn from wildfires in Los Angeles. Plus, Elon Musk has pri ... Show More
11m 35s
Oct 2024
US considers breaking up Google
HSBC’s top-paid bankers to bear the brunt of cost-cutting restructuring, and the UK Conservative party leadership race has been whittled down to two rightwingers. Plus, Germany’s economy is expected to shrink, and the US government is considering seeking the break-up of Google to ... Show More
10m 20s
Feb 2025
Unilever’s CEO gets the boot
Kyiv has agreed terms with Washington on a minerals deal, and finance ministers from many of the world’s largest economies are poised to skip Group of 20 meetings in South Africa this week. Plus, Unilever is replacing its chief executive and the FT’s Hannah Murphy explains why Si ... Show More
10m 47s