In short
Podcast Episode Notes: The Rest Is Money - Episode 153
Episode Overview Title: Reform UK: What Would Farage’s Britain Look Like? Hosts: Robert Peston & Steph McGovern Guest: Zia Yusuf, Chairman of Reform UK Release Date: [Insert Date] (not provided in transcript) Podcast Description: Robert Peston and Steph McGovern bring insightful business and finance stories, discussing the key challenges and opportunities facing today’s business world, as well as expert analysis on current financial topics.
---
Key Themes and Discussions
Introduction of Zia Yusuf
- Zia Yusuf, the newly appointed chairman of Reform UK, has a controversial background as a British Muslim leading an anti-immigration party.
- Discussion on his professional history, including a successful tech business he sold for a significant sum.
- His unique position challenges the stereotype of the traditional supporter of Farage's earlier political movements.
Political Aspirations and Beliefs
- Zia expresses a strong belief in the potential of the UK, particularly in sectors like AI and biotechnology.
- He discusses the importance of social mobility, drawing from his family's immigrant background and experiences.
- His view that Britain can become one of the wealthiest and most dynamic countries globally.
Reform UK's Political Strategy
- Professionalizing the Party: Zia's role is seen as an attempt to establish Reform UK as a credible force in the upcoming elections.
- Challenging Established Parties: Discussion on how Reform UK intends to differentiate from the Conservatives and Labour.
- Political Landscape: Analysis of voter discontent in the UK and how Reform UK aims to tap into this sentiment.
Economic Policies and Growth
- Zia emphasizes the need for economic growth, stating current growth levels are insufficient.
- Key proposals include:
- Cutting Government Waste: Identifying wasteful spending in areas such as net zero policies and asylum support.
- Energy Policy Reform: Advocating for increased investment in nuclear energy and reducing reliance on fossil fuels.
- Boosting AI and Technology: Capitalizing on the UK’s strengths in technology to drive growth.
Immigration Policy
- Discussion on Reform UK's controversial stance on immigration:
- Zia indicates a strong position against illegal immigration and proposes deportation for those who arrive unlawfully.
- The need for a credible plan that addresses illegal immigration without resorting to mass deportations.
Criticism of Current Leadership
- Zia critiques both Conservative and Labour parties for their handling of various issues, including immigration and economic policy.
- He argues that the current political climate lacks decisive leadership and clarity in long-term planning.
The Future of Reform UK
- Zia asserts that Reform UK does not need to merge with Conservatives, citing their growing momentum in polls and voter support.
- Discussion on the party's vision for the future, including a roadmap to increase their number of MPs.
Closing Remarks
- Robert and Steph express their views on the conversation, highlighting Zia's ambitions and the challenges Reform UK may face in achieving its goals.
- Emphasis on the importance of understanding new political forces in the UK and the potential implications for voters.
---
Key Takeaways
- Zia Yusuf’s Background: A Muslim businessman turned politician, presenting a new image for Reform UK.
- Political Landscape: Reform UK is gaining traction amidst discontent with established parties, aiming to position itself as a viable alternative.
- Economic and Immigration Policies: Proposed policies reflect a hardline approach to immigration and a focus on economic growth through technology and reduced government spending.
- Public Perception: There is a risk of Reform UK sounding similar to traditional political parties, which could alienate their voter base.
---
Final Thoughts This episode explores the complexities within British politics as Reform UK seeks to establish itself under Zia Yusuf's leadership. The discussion provides insight into the party's potential impact on the political landscape, especially leading up to the next general election.
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Transcript
Automatic transcript. May contain errors.0:00Now, I'm delighted to tell you that Monzo Business are now a proud partner of The Rest is Money. We're teaming up for the next six months. You'll be hearing why they're a great option for your business banking and how they're supporting small businesses up and down the UK. Now, since I am a Monzo business customer already, I can tell you all about it. They've got three different plans to choose from depending on the size of your business. So, for example, with two of us in mind, me and a business partner in our latest venture, we've opted for the pro version, which comes with a load of tools to help us simplify all of that financial admin.
0:37There's also light for sole traders and team for those slightly larger businesses that are scaling up. So why not join me and over 500 ,000 businesses already banking with Monzo Business and sign up for an account today. Only sole traders or limited company directors in the UK can apply. Invoicing is available with Monzo Business Pro for£9 a month and team for£25 a month. T's and C's apply.
1:13Hello and welcome to The Rest is Money with me, Steph McGovern. And with me, Robert Peston. we've got the new-ish chairman of Nigel Farage's party Reform with us today. And he's a very intriguing character. I mean, you know, I think many people would have thought about, you know, Nigel Farage's previous parties, whether it was, you know, UKIP or the Brexit Party and now reformers, somehow, essentially, white nationalist parties. But Zia Yusuf is none of those things. And interestingly, he is a man who has built a very successful business, which he sold, we believe, for hundreds of millions of pounds.
2:03He managed to take a fair share of that home, doesn't need to work anymore and is trying his hand at politics. He is. And the other thing that's interesting about him is that he is a Muslim. He calls himself a British Muslim patriot. His parents came here from Sri Lanka. And he's definitely not the sort of caricature of a sort of Nigel Farage supporter. And so it's just interesting to me to find out what he sees in Nigel Farage. He's the guy who's supposed to professionalise this party. Up to now, all of Nigel Farage's parties have been sort of single issue, quite successful campaigning parties, but they've never got anywhere near elected office, never got anywhere near being credible to win an election.
2:57So the interesting question for me is whether actually in Nigel Farage choosing this person to chair the party and build up a machine, this is a moment where people need to take reform seriously as a potential sort of, you know, as a potential force in the next general election. Yes. So here's our interview with the Reform UK chairman, Zia Youssef. Yeah, really good to see you. I'm going to start with a horrifically difficult question. I looked you up and it says, believe it or not, online that they're not sure whether you're 37 or 38. So what are you? I can confirm that I'm 38 years old. And so I think where that wanted to, you know, we wanted to go initially was actually what got you into politics?
3:48because for a big chunk of your career to date, you created a business. Why wasn't that enough for you? Well, I started my career in the city. I graduated from the LSE. And then after about five years, I started a company, a tech business. And then you were at Goldman and? And Merrill Lynch. Yeah, yeah, in the city of London. And after about five years, I decided I want to start my own company and spent nine years building that. And thankfully, with a bit of luck and a brilliant team, we had a pretty good outcome. We sold that about 18 months ago. And that was 200 million you got for the company?
4:25Suffice to say, I'm now in a position where I no longer have to work for money. And so I was considering, what do I do next, as you can imagine? And when Nigel said, so there's a couple of things I'd say. Number one, I feel incredibly grateful for all of the opportunities this country has given me, gave my parents when they came here in the early 1980s. I'm very passionate about social mobility, of which I think I'm a reasonable example. And I worry about... Because we'll get on to sort of some of the more sort of political points a bit later, but I think it's important for people to understand a bit about you.
5:04So your parents come from Sri Lanka. I've read that one was a doctor, one was a... Your dad was a doctor, your mum was a nurse. They both still are. Are they both still working in the NHS? Yeah, because your mum's in her late 60s, isn't she? Still working in the... Indeed. She's what, sorry? In her late 60s, still working in the NHS. Still works. Which part of the UK do they live in? They're in Surrey. Okay, yeah. So they live and work there. Yep. What kind of background did they come from, as it were, in Sri Lanka? What kind of... Yeah, my father came... His father was a teacher. My mother's father was a lawyer.
5:40And... Did they come here as adults? Yeah, they came here in the early 1980s, having had my older brother. And, you know, they didn't necessarily have much to their name in terms of means, but they just my father just qualified as a doctor, then became a pediatrician. And actually, they traveled all over the country to find work, which is why I was born in Bells Hill in Scotland. My little sister was born in Cornwall. My older brother went to six different schools. And so thankfully, by the time I started going to school, they had settled in the southwest of London. So, look, I'm, again, super grateful to them as well.
6:16They gave me love. They gave me an education. They both worked two jobs and took out a second mortgage to be able to send me to Hampton, which is an independent school where I got a 50 percent academic scholarship. And so, again, it's one of those things that's really important to me is that I know how hard my parents worked to give me those opportunities. I then thankfully got into a good university and then, you know, set about in my career. And, you know, yes, absolutely. I've worked hard. But, you know, you always need a bit of luck as well, especially when you're starting a business. And so tell us a bit about your business as well.
6:50Yeah. So the business focused on people who have considerably more what we call it capital in time. So people who work really, really long hours. Yeah. They generally actually don't go on vacation that much because they only have time to plan it. But generally their partners are in exactly the same boat. Time poor. Yeah, exactly. Time poor. So what the business looked to do was use cutting edge technology to be able to give them really cool ideas for things that they could do with their free time and make it really easy to buy from them. Like a concierge service. Yeah. Yeah. But as I said, with a real focus on using technology to automate things, certainly on the back end.
7:28And we spent nine years building that, me and my co-founder and a brilliant team. We grew it across the UK and in the US. The United States became the majority of our revenues within about four or five years. It was very high growth. It was one of the fastest growing companies in the UK by revenues, according to the FT, which is also, we can talk about this a bit later, but in terms of building a political party from scratch, there are some parallels there. So I love that journey. I mean, anyone listening to this who has started the business for themselves knows it is simultaneously the most challenging, grueling and rewarding thing that you can do.
8:08When you were starting out, did you have money to start out? Did you get investors? Yeah, so we started out with some very small seed investors. I mean, I actually remember we were in a lower ground floor apartment. And when we were pitching investors, they had to take their shoes off when they came in. Because it was in your flat? Yeah, literally. So we were pitching them for money and they had to take the shoes off when they came in. And so, but look, you know, that comes from... Were you judging them by their socks? Well, look, what we were focused on back then was, you know, how do you find your first customer?
8:39How do you find someone willing to pay you some of their hard-earned cash for a product or service that you create? And, you know, anyone who has been through that journey, successful or not, I have immense respect for. It's really, really hard. And as I said, we had a successful outcome. What was the basis? You said you were using technology. I mean, essentially, whatever you sold it for, I've read 200 million, but you can tell me after the show what it really was. But was it a technology platform that was valuable to the purchase? So what is it that you created that was valuable? Yeah, so I think the platform was the most valuable thing.
9:19So we had a consumer-facing brand called Velocity Black that was generating tens of millions of pounds of revenue. But we also had an enterprise product. We'd use something called an API, which meant that more sophisticated enterprise clients could plug into our platform. So that's a bit more like a Stripe, for example, where enterprises could plug into our platform using their technology and white label it for themselves. And look, we had a whole range of credit card companies who were interested in what we did. Because they were getting into the whole offering concierge as a sort of add on to their.
9:50They've done that for a very long time. This is like the platinum card holders saying, we'll get you theatre tickets or that kind of thing. Yeah, and that's obviously been part and parcel of premium credit cards for decades. But this was a novel and modern approach to doing it. And the most important thing about it was it delivered what we thought and I think transpired to be a better experience for the customer. And because there was a lot of automation in the background, the marginal cost of actually doing it was a lot cheaper than the old way of doing it. So you sold the business and then what happened?
10:25I was in a position where I was about to go and start a new company and then when Nigel said he was going to come back into British politics I've always had a reasonable sense of inflection points and a reasonable sense of the trajectory on which things can go and when Nigel, who I think is a seminal politician Did you know him already? Yeah, yeah, yeah. I've known Nigel for a long time How did you get to know him originally? A long time ago, I met him at a drinks reception, probably about 11 years ago now, at a bar in London. He's always been someone who I've had immense respect for. Was this before Brexit?
11:06So this would have been around about, yeah, it would have been before. Yeah, yeah, yeah. and you know we kept in touch but when you're building a company it's sort of seven days a week you know 14 15 hour days and so that's what I was focused on but obviously once you've sold your company and I think a lot of founders who've gone through this process you do some soul searching and I just decided look there is a there is an opportunity not just to move the country away from its current trajectory, which I think is to a very dark place and for both an economic perspective and a social perspective, but actually take it to an incredible place.
11:47I think there is a time limit. I don't think we have unlimited time to be able to do this. I still think Britain can be one of the wealthiest countries in the world, one of the most prosperous, one of the most dynamic. I think we've got the people, we've got the talent, we've got, particularly in the era of AI, for example, biotechnology, and potentially the new era of manufacturing, I think Britain can be an incredible country. So at that point, of course, Nigel had just announced he was going to come back and stand to be an MP in Clacton. And so I said, I want to do whatever I can to help you do that.
12:22I didn't know much about what was going to happen beyond it. I still remember, because I looked at the betting odds at the time, not that I'm not a betting person, But I just looked at the odds. And at the time, Nigel was 34 % probability, according to betting markets, to win his seat in Clacton. Today, his probability is higher than that. I think it's about 37%, 38 % to be the next Prime Minister of the United Kingdom. And that's happened in eight and a half months, which again gives you a sense of how quickly things can change in the world that we live in today. And part of what informs my belief in reform's potential to form the next government is that experience I have from technology where, I mean, how many people had heard of ChatGPT even 18 months ago?
13:06Now it's ubiquitous and will become even more so. So we're living in a world where the ability for something quite small, but bursting with energy and potential and in the right place at the right time can become very big very quickly. And I think we're starting to see that with reform. And can I just ask, I mean, at the time that you first met Nigel Farage and were impressed by him, the public perception of the party he was then leading, UKIP, would have been sort of white male nationalist. You obviously didn't think that's what it was. Why did you see it differently? me? Partly because I got to know the human being, the actual person.
13:53And Nigel as a person hasn't really, I mean, everybody evolves, as you can imagine, and everybody grows. But Nigel himself has always been someone, certainly in my assessment, and now I spent more time probably talking to him than anyone else as we build this thing. I can tell you, everyone listening to this, that Nigel is someone who cares deeply about this country. He's made huge personal sacrifices. That's something I always look at, you know, what sacrifices have you made in order to stand up your beliefs? And that's at least something that I can look at as to the degree to which you believe them.
14:23Nigel's made huge sacrifices to do what he has done. And I'd also say, look, Nigel, there has been, I would argue, a significant amount of negative propaganda about him, where the delta between what is being said about him in certain quarters versus what is true, Not that he's perfect, but what he actually believes is big. And so to that point, though, let's talk about what happened with UKIP. I mean, one shouldn't remember that one of the reasons why there is no electorally viable far right party in this country, like actually far right party, is because Nigel, I would argue more than anyone, put page to those organisations.
15:01We should remember what happened, why he left UKIP in the first place, Robert, which was he had a very strong view about what had happened in terms of the NEC and people who were being allowed into the party. So, no, look, I got to know Nigel. I have a reasonably good sense of people. My instincts are reasonably good there. And I could tell Nigel was someone who's deeply patriotic. I totally agreed with him that the potential for the United Kingdom was being stymied by unelected judges and bureaucrats in Brussels. And that's how our friendship originated. Because there would be some in the Muslim community who thought that some of the things he said about, I mean, he would say Islamists were Islamophobic.
15:43But you obviously don't think that's right. Not at all. I think I, as much as anybody, I'm gravely concerned about extremism in every possible, in any sense. And there are issues around Islamic extremism in this country and those need to be addressed. And so to the degree that Nigel is somebody, you know, a frontline politician who is willing to say things that are true, that are frankly sometimes unpleasant to talk about, not necessarily the things that people at posh dinner parties in around central London want to talk about. Nigel's always been willing to have those conversations. I think that's why people trust him as much as they do.
16:24It's why his favorability ratings have gone up so much over the last year as they've gotten to know him more. And it's why I think he'll make a great prime minister. Can I just ask you, before we move on to some of the sort of big policy issues, I mean, you, I think, describe yourself as a British Muslim patriot. I suppose there's two issues. It's interesting to me that you say British, Rishi Sunak says English. So I'm interested to know whether that distinction matters to you. It was partly because I was born in Scotland. So I'm not a Christian. And I mean, as it happens, I think of myself from a Jewish background and I think of myself as British, right?
17:03I think of myself as Northern. Do you? Interesting. So it's interesting how all of us carry these different labels around. I was never weirdly, partly because I met a lot of, when I was young, I encountered a lot of English anti-Semitism. I was always a bit uncomfortable with the English label, but British, strongly patriotic. I think patriotism is a virtue Nationalism I'm uncomfortable about But patriotism definitely is a virtue But then within your You know the community you grew up with Has it been Challenging to explain You know because there are as you say these preconceptions About Nigel Farage Have you devoted an enormous amount of your time You know in a sense trying to explain To the people you grew up with in your family Why you do what you do Or do they just trust you in terms of your judgement Yeah, actually way less than you might think.
17:49You know, so the number of people who have come up to me, so every interaction I've ever had with somebody coming up to me in public, universally touch words so far has been positive. It's been great. But you'd be surprised how many of them are from ethnic minority backgrounds and perhaps from the opposite, Robert, of what you just talked about before about some of those preconceptions. And these are people who are working hard, love this country as much as anybody, and think it's frankly diabolical that people are allowed to come here illegally and go to the front of the queue for things like accommodation.
18:23They're deeply worried about how much it costs when you go to the supermarket. It keeps getting more expensive. These are problems that transcend, unfortunately, what race you are, what religion you are. So, yes, it is true that we have to be real and stare in the face the threats that this country faces, one of which is Islamic extremism, for sure. But the reality is the vast majority of people in this country want to be able to wake up in the morning knowing that when they set their alarm and go to work, they can make their lives better, that their salaries are going up faster than the cost of goods, that their kids are going to be able to at least rent a home, let alone buy one.
18:59So that's been my experience since I came into frontline politics. So let's talk a bit about then what we do to get there in terms of the growth, the prosperity, the living standards, because that's what we spend a lot of our time talking about is where is growth going to come from? What do you see as the way we get growth in this country? I think, look, as of right now, there basically is no growth. And we could talk about 0.1 or 0.3 or whatever, or negative 0.1. And so how do we get it? There are a few different things. Number one, we've got to double and triple down on this country's strengths, one of which, for example, would be artificial intelligence, where a significant percentage, actually, of the world's leading AI engineers are in the United Kingdom, thanks partly to companies like DeepMind.
19:43I mean, great universities. We've got great universities. Four of the top 20 STEM universities in the world are in this country. Absolutely. And Sir Demis Acebis is someone who I have enormous, enormous respect for. I'm always amazed at how few people in this country know who he is. as a British man who won the Nobel Prize for science for a piece of software. In fact, I think he and Geoffrey Hinton, another brilliant, brilliant man, British man, won the Nobel Prize for science for pieces of software, unheard of. They are great case studies of the fact that we live in a world where, you know, your 99.9th percentile, to get a bit technical, of your, let's call it, intellectual capital as a country can drive huge returns for you as a country.
20:23So in a world of AI, we have a huge amount of the world's talent, vastly disproportionate to the size of this country. That's great. Here are the problems. Number one, we have no. So the thing that is really important in AI is to have what's called compute. So these are these. Yes, the power. Yeah. You know, chips, basically. They put in these huge clusters on big sites and that's what creates this artificial intelligence. Almost all of this is in the United States and to some degree probably in China, although it's a little bit below the radar. This country is virtually nothing. The second big limiting factor, and one of the reasons we have nothing in this country, is energy prices.
21:02And so if you look at, for example, the top five NASDAQ companies, so these are the big five tech companies in the United States, They currently, as private companies, hold 40 % as much of the energy capacity as the United Kingdom does. And we've talked a lot about this. Yeah, we have talked a lot about this. And the fact that, you know, one of the things that's holding us back is that, you know, energy is so expensive. It's too expensive. So how do we, what do we do to solve this? Because we've talked a lot about the problems and AI, you know, that you're talking our language around the importance of AI.
21:34And as you say, the power consumption of these data centers is off the charts. And so, you know, this, you know, it's one of the things that, you know, Sachin Adela talks about, which is, you know, if you want to be competitive in AI, you've got to cut the energy cost per token. Which is why they're turning on old nuclear plants. They're, you know, they're massively going. So that point on energy, not only do they currently have the equivalent of 40 % of the sovereign nation of the United Kingdom, they will surpass us in energy capacity. Again, held as private companies within seven years. So here's how we do it.
22:06Number one, we have to scrap the net zero policies. Hang on. Most of the power, to be clear that these companies, I mean, their source is mostly nuclear. This is where they're putting all their money. They're not putting their money into gas, to be frank. They are putting their money into nuclear. So they're doing a couple of things. Number one, they are doing a lot of solar. And solar. But one doesn't need to be a meteorologist or a climatologist to know that solar works better in the deserts of Nevada than it does in most of Britain. But yes, they're doing a lot of nuclear. So number one, we need to scrap the net zero policies.
22:41We need to end... But net zero has got nothing to do with nuclear. So hold on. So there's a couple of things. We have to scrap the net zero policies because what that is doing is adding an enormous amount to the raw cost industrially of energy in this country. And it is increasing consumer bills, separate point, but obviously the two are connected. Secondly, absolutely, we should be proliferating nuclear, particularly small modular reactors, partly because small modular reactors use technology that basically already exists. It's proven most of our submarines in the Royal Navy use these things.
23:14So what it does is bring that technology on shore. And the key point with small modular reactors is 90 % of the assembly is done inside factories. So it's a lot easier to scale from a planning perspective and a regulatory perspective. What we have lacked in this country is the political will, the political conviction, and frankly, just some consistency. If you're changing prime ministers every 15 months, it's very difficult to get any serious company to work with you. And if you look at a company like Rolls Royce... But I've just got to ask you a question before we move on from there. I mean, to be absolutely clear, if we scrap net zero and we become more dependent on gas for longer, our energy security will be more at risk.
24:03We simply don't have enough gas in the North Sea. So even if you don't take my view, which is I happen to think climate change is a big problem and that actually there is merit in the UK showing some leadership here. And of course, I accept the basic economics that we've got to bring power costs down. But I also take the view that one of the things that we learned from the energy shock that followed Putin's invasion of Ukraine, that it is really risky for the UK to be dependent on gas. because, you know, the reason that the cost of living soared for people in this country was because we are not energy independent.
24:41And we could be energy independent if we go for renewables and nuclear. And we will not be energy dependent if we remain dependent on fossil fuels. It's as simple as that. Well, look, I think there's multiple things that I think are being conflated here. Even the term net zero. I mean, look, I'm in frontline politics, so I get it. It's a highly emotional term. I think it's quite Orwellian because we are massively in favour of those nuclear small modular reactors. And those are zero emissions. And listen, I think man-made climate change from the basic analysis I've done is real. And I very much would like to have clean air for me to breathe my children and hopefully my grandchildren.
25:20So what we want to do is proliferate at great urgency. So we're in agreement then. But here's what hasn't happened. So what happens is both the Tory government and Labour, it's continued under them. When they are opening these tenders for nuclear plants, they're opening it globally. They're bringing the Chinese in to compete and they take years. We need serious. One of the biggest issues we have in this country is we need serious and fundamental reform to planning, serious and fundamental reform to regulation. And we haven't had those things. We've never had, certainly in my lifetime, actually, a government that sits down and says, we are going to plan for the next decade because you can't plan nuclear based on eight months.
Read the full transcript
25:58This is why the Tories were so, why the Tories impact on this country's energy policy was so pernicious, because not only did they go down the net zero road, they changed their three chancellors in a week at one point. And by the way, everybody is planning for nuclear and for 10 years. I think that's what they're doing. We have had, so in this country, Rolls-Royce, an incredible engineering company who have some experience on building extremely sophisticated, high cost of failure technology in the form of their aerospace engines. They have as good a product in terms of small modular reactors as anybody.
26:32What we should be doing is sitting down with them, which is exactly what President Trump would do, exactly what Xi Jinping would do. You would sit down with them and say, listen, let's do a deal. let's give you the commitment we need to give you in terms of planning reform, regulatory reform and make sure that you have the visibility you need to be able to ramp up your capacity so that we can get baseload power in this country from nuclear up as quickly as possible that is zero emissions and that's how we get cheap abundant energy in this country and that will help not just with the AI it will help everybody listening to this programme your bills will fall that's the kind of leadership that Nigel will offer when he's the Prime Minister Right, let's go to a quick break before we ask you anymore.
27:10See ya. This episode is brought to you by Vanguard. Now we all know managing your money is important but let's be honest not everyone has the time or confidence to do it themselves and that's where Vanguard's managed ISA comes in. It's a stocks and shares ISA but managed by experts so Vanguard helps you figure out your risk appetite, matches you to an investment plan and takes care of the rest. So no second guessing, no stress, just smart professional management. With over 50 years of experience, Vanguard makes investing simple and cost effective. So while Vanguard sorts your ISA, what will you do?
27:50Focus on your career, maybe build your savings, maybe even take that long overdue break. I think if it was me with that spare time, I'd think about setting up another business. Why not? You've got to be in it to win it. So yeah, Vanguard's sorting your ISA. What will you do? Discovered managed ISA today. When investing, your capital is at risk. Tax rules apply.
28:17Hello, I'm William de Rimpel. And I'm Anita Arnond. And we are the hosts of Empire, also from Goalhanger. And we're here to tell you about our recent mini-series that we've just done on The Troubles. In it, we try to get to the very heart of the violent conflict in Northern Ireland that lasted from the 1960s all the way up to 1998. It's something that we both lived through and remember from our childhoods, but younger listeners may not know anything about it. And it's the time when there was division along religious and political lines. Neighbours turned against each other. Residential city streets became battlegrounds.
28:54Thousands were killed and the IRA bombed London. It seemed as if an end was out of reach, but in 1998, a peace process finally brought those 30 years of violence to an end. But the memory of the Troubles is still present, not only within Northern Irish communities who experienced it, but in international relations and political approaches to peace. And new audiences are starting to understand this national trauma through films like Belfast and kneecap and TV shows like Derry Girls. In fact, our guest on the miniseries is Patrick Radden-Keefe. Now, he's the author of the non-fiction book that inspired the hit TV drama Say Nothing.
29:37It's one of my favourite books. It's, I think, the kind of in cold blood for our generation, extraordinary work of non-fiction. To hear the full series, just search Empire wherever you get your podcasts. So energy prices, but there's lots of other problems as well. So what else? OK, we need to cut waste in government spending. We just have to do it. We are, the current cost for this government of borrowing money is at 4.7%. It's on par with actually the highs of when Liz Truss was the prime minister. And I think it's edging higher. Again, all politicians are saying that though, that they need to cut waste.
30:12And what we are, well, OK, so let's talk about where we could find some of that waste. And we are doing a lot of analysis, you know, are the people working on policy for us. There are lots of places where you can cut waste in this country. One of them would be the net zero stuff, which is around 10 billion, for example, in terms of taxpayer money that is spent on that. Then you've got the at least 5 billion. We think it's probably double that per year that we spend on on asylum hotels and hotels for people who come here illegally. Then you have the foreign aid budget. And it's not to say that there aren't people in the world deserving of that.
30:45But listen, there are so many people in this country who are absolutely struggling. And I think it's unconscionable. And that is being cut. Well, let's see if it actually ends up getting cut. They say they're going to cut it. But last year we spent almost 15 billion pounds as a country on foreign aid. So that already is 30 to 35 billion. If you take something like welfare and benefits, again, difficult problem to solve. I'm not going to claim it's a super easy problem to solve. But when you actually look at the detail on this, number one, that budget is growing at a frightening pace. A double digit percentage of young people now in this country are on long term benefits.
31:19But just on the asylum hotels, for example, I mean, Nigel Farage has made it clear that, you know, you recently expelled from the parliamentary party Rupert Lowe, who was in favour of mass deportations. Nigel Farage has made it clear that he is not in favour of mass deportations. so how are you going to scrap the hotels in which you're, you know, and the very expensive accommodation in which these people are living? It sounds to me as though you're doing a sort of Boris Johnson having your cake and eat it. No, no. What Nigel said in that interview was that, look, so there's a few different points there, right?
31:58So number one, reforms policy is that if you come here illegally, you will be deported to the country from which you came. You have to stop, you have to completely shift the incentives around this 180 degrees. At the moment, it's the opposite. You come here illegally and you actually get better treatment more quickly than the people who come here illegally. But hang on, putting to one side whether or not, A, that's legal and practical or the right moral thing to do. I'm just talking about the very large numbers who are here already. You can't just wish them away. I agree. And that's why we need properly detailed policy, which we will put in front of the British people prior to the next general election.
32:34And that's fundamentally Nigel's point. It's all very well saying we're going to deport three quarters. The numbers of people here illegally are somewhere between three quarters of a million and 1.25 million people. Our view is if you are here illegally, it is unfair to people who, A, came here legally like my parents and, of course, native British people for you to remain. And our view is you should be deported. But we have to be – we're a serious political party. We are preparing for government. And so you have to have a workable plan to ensure that that sort of thing can happen. And you haven't got it yet.
33:05By the way, that's exactly what – because we're working on that. But there is historical precedence for this not too long ago. President Obama, very few people actually realise this. President Obama deported millions, I think he deported three million people across his two terms. So it can be done. It does need to be done for the British people. We are working on a credible and serious plan to make sure that it is done humanely and it is done in a cost-effective fashion. But we can't do any of those things, of course, while we remain part of the ECHR and we have all of these treaties that tie the hands of the British government and effectively work in favour of the rights of foreign citizens over the rights of the people who are British citizens.
33:46So, OK, so in terms of what we've said so far, you're talking about energy, trying to bring down the cost of energy and about trying to send away the people who are currently here illegally. But what about growth? That's not talking to me about where's growth coming from. talking about exactly like the United States is doing at the moment. And you can question some of the rhetoric around it. Is Elon Musk your inspiration in terms of what he's doing? So look, what is clear, what Elon Musk has said, he has said that he believes, and whatever you think of him, he has built some pretty astonishing companies in his time.
34:21He's clearly a smart man. He has said, and I quote him, the United States is on a fast track to bankruptcy. And the United States is in a far better position than we are fiscally and in many other ways as well. They have a 130 % debt to GDP ratio. So they are definitely not in a better position fiscal. They are growing much, much, much faster than we are. Much faster. And they have this incredible consumer market, which is why President Trump is now doing all this stuff on tariffs. But just to be absolutely clear, their debt to GDP ratio is 30 % higher than ours. Yes, but their economy is growing much faster.
34:53And so we're talking about ensuring that people who do need disability benefits can get them. If you're talking about getting our NHS waiting list down from 7 million today, as opposed to where they were two decades ago at a million. If you want those things, if you want doctors, nurses, roads, the police, these things have to be paid for. The only way we will get it is through growth. So we need to cut the waste. That will allow us to then pass that on in terms of tax cuts to British consumers and to British businesses. We shouldn't forget it is the private sector. It is only the private sector that actually creates wealth for British people.
35:28So we have to remember that the majority of people in this country. And just to be clear, because, you know, you are somebody who built a business, so you understand, you know, balance sheets and projections matter. To be clear, Reform's manifesto in an economic sense, the last election was a joke, right? The numbers did not add up. it was a manifesto created by a party that obviously was trying to win votes but had no confidence it was going to be anywhere near power. Do you genuinely believe that by the next election you will have a programme that people will be able to look at and say OK, this is not going to bankrupt the UK?
36:11So I do disagree that the contract with the people that's still up on our website, which is our manifesto. But your costings were ridiculous. They were near realistic. Because the people who did that analysis in order to hurl rocks at us, they made the assumption that everything would be implemented on day one, which was not going to be the case. And a lot of that stuff, Robert, let's be clear about a couple of things in that. So, for example, I remember Richard Tice and Nigel were saying, listen, we want to get the civil service and public bodies to cut 5 % of their costs. And they were ridiculed for this, absolutely ridiculed.
36:47And what's happened now? Rachel Reeves, the Labour Chancellor, what, eight and a half months after the general election saying she wants to put pressure on these departments to cut by 15 % in many cases. So that would be the first point. The second point you'd make about that was defence spending. We were the party that said we want to take defence spending to two and a half percent of GDP and then to three percent and then beyond to three and a half percent over time. What's happened now? Labour saying that they want to increase defence spending to 2.5%, which, by the way, I think they will achieve, to give them credit, not by increasing defence spending, but by reducing GDP.
37:20That's probably the way they're going to hit it. So what we've got to focus on is how do we get the British economy growing? How do we improve the lives of British people? You've got to reduce the size of the state. You've got to reduce taxes on British people. You've got to make Britain one of the best countries in the world to start a business, run a business and grow a business. And the opposite has happened. More millionaires are leaving this country per capita than any country in the world. And some people might roll their eyes about that and say, good winds. Well, the problem with that is the top 1 % of income taxpayers pay around a third of the income tax in this country.
37:54So we have to take the whole population with us. We have to take the people who are working really hard and don't have big incomes. You have to ensure those people's earnings are growing much faster than inflation. And again, the opposite is happening. Wages, real wages, so wages adjusted for inflation currently, are lower than they were in 2008. So everyone listening to this who feels poorer, it's because you are actually getting poorer. So we're not going to solve any of these problems, Robert, without actually some decisive leadership that where difficult conversations need to be had. We are going to need to use a lot of cutting edge technology.
38:34And by the way, by the time we get into government, which is obviously our plan, even if you look at technology today, you look at most of these civil service offices and you look at things like the DVLA and even HMRC, huge amounts of efficiency to be gained by deploying technology in a competent way. We have the talent here. The problem is the talent doesn't exist in Westminster. Most of these MPs have absolutely no idea about what's going on in terms of the frontiers of cutting edge technology. Most of them, I mean, the Labour cabinet, again, I emphasise the point. From what I can tell, none of them have started a business.
39:07None of them have meaningful business experience. On that point, though, do you think you will get a lot of business people who will want to become MPs for reform? We already have. Yeah, we already have. So we have two things. So as chairman of the party, I have some visibility of this. Perhaps others won't yet anyway. The number of people, the talent pool that has availed itself to us, even over the last few months as we've gone up in the polls and been on this journey, it's incredible. These are people who could be doing many, many other things, actually not dissimilarly to what has happened in terms of the Trump administration, where you have the founder of Uber and all of these people turning up to work for free in service of the national good.
39:51We in the UK might not like the decisions they're making because they're making decisions that they believe in the interests of the United States unapologetically. We need leadership in this country that are willing to do the same thing. A lot of those decisions are not going to help the American people. Their inflation is going to rocket with all these trade tariffs. Listen, I don't think if Nigel was the prime minister, number one, I believe we would have gotten carve out on a lot of these tariffs that are happening now. I do think, I take your point that there was a collegial meeting in the Oval Office that Keir Starmer had.
40:27And President Trump actually does have a soft spot for the UK. But I will say it was deeply, deeply unhelpful. Absolutely catastrophic, actually, for this country. That so many members of this country's cabinet have made personal, personally insulting comments about President Trump. I'm talking about what America is doing. It's not going to help American people. And you're saying you want to do that here. Well, you've got to judge that. You've got to judge that in a few years' time when you see the result of it. I mean, clearly. Hang on a second. I mean, business and consumer confidence is absolutely tanking in America.
40:57You know, I mean, there is no credible economic theory which would say what Trump is doing in terms of tariffs will do anything other than make a America poorer and the world poorer. I am not in favor of the actions that the Trump administration is currently doing in terms of tariffs. I'm a British person. I don't think I don't want any of our exporters being exposed to tariffs. Let's be really clear about that. I will make this point. But you're also saying you're praising Trump for putting America first when what Trump is actually doing is damaging his own citizens. I'm not praising anyone. I'm observing and just making a factual statement.
41:43We live in the real world. President Trump has made it abundantly clear. You've seen the signal chats, et cetera. The view amongst many people in the United States in terms of Washington, D.C., is that firstly, Europe, including the United Kingdom, needs to spend a lot more money on defense. And we are. We are now starting to do that, yes. Unfortunately, you've got to ask yourself, well, there's a plan to do it. But again, you've got to ask yourself, where is this money coming from? If you have no growth, it's all very well saying you're going to increase it as a percentage, but that money has to come from somewhere.
42:14I want to live in a United Kingdom that does stand on its own two feet in terms of a military that isn't chronically underinvested thanks to 14 years of Tory rule. I want to live in a UK in which the economy is growing 3 % to 5 % per year. And most importantly, I want to live in a United Kingdom where GDP per capita, output and incomes per head, is also increasing 3 % to 5 % a year. And we're not going to get there unless we have politicians and leaders who are willing to make decisions through the lens of which decision can I make that is most in the interest of my citizens. And we haven't had that, frankly, in my lifetime.
42:51What's harder, running a business or trying to convince the nation of what you're saying about what we need? Business is really, really, really hard. I think politics is harder. Politics is harder. And it should be because, you know, we are making the case to the British people that reform should be the government. And that is a grave and serious responsibility. It's the point I'm making. You know, our government spending is 1.2 trillion per year. The two most important people in this country as we speak in making decisions with that money are Ed Miliband and Rachel Reeves. And without being unkind, I personally think I can think of many people whom I would like to be making those decisions more so than them.
43:34Now, look, the reality is they were elected in a free and fair election and we absolutely respect that. So we've now got to make our case to the British people. As chairman of the party, I'll also say it is as challenging assembling a political party from scratch. I mean, you know, eight months ago, there basically wasn't really a... There was no infrastructure whatsoever. We've still got a long way to go and we're going to continue to building, but we're proud of what we have achieved. But you think you'll be ready in three years, do you? You don't need to merge with the Tories, which is what a lot of people believe.
44:03No, I don't believe that. And I think if we did do that, the reason why we are against it is because, number one, we don't think we need to. So if you look at the general election, we won 14 % of the vote share, 4.1 million votes. Current national average of the polls puts us at 25 odd percent. That is nine percentage points. We've done that in as many months. Our membership, while the membership of the other major parties from all reputable sources, is in decline, as has gone from 60 ,000 in July last year to 220 ,000. So we have huge momentum. And again, as someone who, look, in Westminster, well, you can, but almost nobody seems to be able to look beyond the news cycle tomorrow or maybe the end of the week.
44:44And I think that's actually a really big problem, a big reason why the country is in the state that it's in. We think if we can carry on with the momentum that we have, we don't need to merge with the Tories. But you expressed it as, you know, if you carry on with the momentum, you're not saying we're rooted out on principle of merging with the Tories. Well, look, we believe that, well, let's just look at the evidence of 14 years of Tory rule. One doesn't need to speculate about this, right? They were the party. And whether you agreed with this policy or not, in four consecutive manifestos, they committed that they would reduce net migration down to the tens of thousands.
45:20They left office with it at over a million. And again, whether you agree with that policy or not, they literally did the opposite of what they promised. They took taxes to they took the tax burden on working people to the highest level since the Second World War. And I know Covid happened and you can argue about that. But under Boris Johnson, public spending as a representative of GDP got not far off Soviet Union level. So, again, this is not what people expected when they voted Tory. That's why their vote has collapsed. What we believe needs to happen now and we have a historic opportunity to do it, to actually get to the point where we can have, well, we need a minimum of 326 clearly to have a majority.
45:56Our goal is to get to 350 to 400 reform MPs who are in no uncertainty about why they have been elected with a clear mandate from the British people. So as a sort of business plan, then, since we started off talking about your business, at what point will you be able to decide that you've got a credible machine that could win an election? Two years from now? Well, it'll be for the British people to make that decision. No, no, what I'm saying is if you're saying you don't think you need to merge with the Tories, so at some point before the next election you have to make that formal decision. Let me be crystal clear.
46:34All of the things we are talking about, all the things I've talked about in this podcast, all the things that Nigel and the MPs and I talk about our vision for the United Kingdom, we do not think that will be possible if we had to merge with the Tories, partly because the Tories are 50 % small C conservatives who are values aligned with us, and the other half are basically Lib Dems. And that was the reason why, by the way, they got through six leaders in eight years. It's why Rishi Sunak failed on every single one of his KPIs a year before the general election. I actually don't think it was because Rishi Sunak didn't want to stop the votes, for example.
47:06It's because he has a parliamentary party where every conservative leader, and I believe Kemi is doing exactly the same thing now, the lens through which they make decisions is not what's in the best interest of the country, But how do I minimise the likelihood of another letter going into the 1922 committee to have me removed? Do you know what's really interesting to me sitting here now chatting to you is like you guys pitch yourselves as kind of anti-establishment. And I know people who voted reform. I'm up in the northeast. So, you know, I know plenty of people who voted reform. What they have always rated about reform is not sounding like politicians, like the Westminster politicians.
47:45and you sound like a Westminster politician. Like you're doing all the same tit-for-tat attacks on politics and you're not worried by, you know, you're starting as a start-up but you're becoming a corporate, you're becoming a mainstream party that's going to just sound and look like all the others. Well, I think fundamentally the thing that we think is broken is Westminster in general. We think we need a reboot, which is why, as I said, we don't think we should be... We think that if we were forced to merge with the Tories because we didn't have the success we think we can and need to over the next few years, and we obviously got to make the case of the British people in order to do that, then none of the things that we want to happen will happen.
48:25For example, securing our borders, stopping the boats, withdrawing from international treaties that prevent us from doing that, freezing net migration, reducing the size of the state. I mean, these are all actually, I think, going to be quite radical things that we put in front of the British people. We will put it in our manifesto, unlike Labour. One of the reasons why Labour's popularity has collapsed, by the way, since the general election is less because people like me or people like Nigel don't like the policies. I mean, that's baked in for them. It's because none of the things that they were, that are most unpopular in terms of policies were in their manifesto, taking away the winter fuel allowance, the inheritance tax rate on farmers, the increase in national insurance contributions.
49:05So look, I think you've just proved Steph's point there because this just sounds like the normal party knockabout. Well, look. Whereas what people want to hear, I think Steph's saying a solution. Yeah, it's just what you're going to do, not what everyone else has done wrong. That's just, you know, like my, you know, I was in, I'm from Middlesbrough, I was there when covering Brexit when it happened. I know why people voted for Brexit in the North East. I know why they did. And it was because they were so annoyed with Westminster and they were annoyed with this political and media elite who were making all the decisions for them.
49:39That was the big driver. A lot of people didn't realise that at the time. and I was like the one of the lone voices shouting it. I know Robert thought it too because we were working together, but there's a danger you're going to look and sound like everyone else and that's going to be your downfall. Well, I don't think there's anybody else who is saying the things that I've said on this podcast, right? So not only are we going to leave the ECHR as quickly as possible, that will allow us to then stop the boat, we'll freeze migration, we will deport people here illegally, we will dramatically cut public spending, We'll reduce people's taxes and we'll get our economy growing three to five percent a year and on a per capita basis.
50:17Well, I don't believe any other party is saying those things. And I think, you know, even when we talk about energy policy, I mean, ironically, we actually agreed on some of these points, partly because the way policy is made in this country by both parties, by the Tories over 14 years and now, frankly, by Labour is incredibly short term, motivated by totally the wrong things. All we will do is continue to put that case to the British people. Right, unfortunately we're out of time. I always think it's good to end on a point of irony. Listen, it's great to see you. Very interesting conversation.
50:48Thanks very much for coming. Yeah, we've covered loads there. Thank you very much.
50:53Wow, that was interesting. It was interesting. I mean, look, in case anybody out there is sort of, you know, some of you may well think everything he has to say is absolutely brilliant and others of you will be really horrified by the kind of policies that he's got, including essentially branding pretty much all asylum seekers as illegal. Obviously, there will be asylum seekers here who are escaping persecution. And the idea that we're going to expel all of them, I think many people would regard that approach by reform as absolutely toxic and reprehensible. But it's important, you know, the reason we talk to Zia Yusuf is people have to understand what they represent.
51:33Because if you don't shine a light on a party that's challenging for government, people will not vote in a rational way. Yeah, and as we said at the start, they do need to be taken seriously because they are challenging the traditional parties. They're currently getting a 25 % vote share. Now, let's be absolutely clear. At this stage of the parliament, 25 % of the vote share does not mean that's what you're going to get in a general election. There's a lot of discontent with the government, but they are an important force. And I think it was important to get him to talk about what they stand for, where they're going.
52:13And people can make up their own minds whether that's the sort of thing they want to support or not. I think it was a bit annoyed with me at the end, though, suggesting that he sounded like other politicians. But he did, you know. No, he massively did. And actually one of the things that is, you know, I mean, listen, you know, paying money takes your choice whether you want them to succeed or not. but it is interesting to me I mean you made a very important point that you know they do increasingly sound like just another one of those knockabout you know political parties that engages in the normal knockabout and as you say the more they sound like that quite a lot of the people that you know who voted for them the more those people may well be disillusioned yeah interesting right we better wrap up that's it from us and the rest is money bye bye goodbye
From the publisher
Steph and Robert speak to Zia Yusuf, Chairman of Reform UK to discuss his controversial role as a British Muslim running an anti-immigration party, why he won’t rule out merging with the Tories and whether Reform actually have some serious economic plans for the country.
Email: restismoney@gmail.com
X: @TheRestIsMoney
Instagram: @TheRestIsMoney
TikTok: @RestIsMoney
Assistant Producer: India Dunkley, Alice Horrell
Producer: Ross Buchanan
Head of Content: Tom Whiter
Exec Producers: Tony Pastor + Jack Davenport
Learn more about your ad choices. Visit podcastchoices.com/adchoices
Learn more about your ad choices. Visit podcastchoices.com/adchoices
