In short
Podcast Episode Summary
Podcast Title
The Rest Is Politics
Hosts
Alastair Campbell & Rory Stewart
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Episode Title
194. Autumn statements, Putin's progress, and why advertisers are pulling out of X
Episode Description
This episode discusses various topics including inheritance tax, voter reactions to the ceasefire vote, and the current status of the Russia-Ukraine conflict.
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Key Discussions
- Autumn Statements and Economic Context
- Importance of Autumn Statements:
- Offers a platform for significant policy announcements that can alter public sentiment.
- Recent statements have gained prominence comparable to annual budgets.
- Current Economic Landscape:
- UK economy struggling: high taxes, low growth, and a history of poor economic performance over the past 13 years.
- Jeremy Hunt's upcoming statement could potentially announce tax cuts, particularly targeting inheritance tax, fueled by increased tax revenue due to rising wages and frozen thresholds.
- Political Dynamics:
- Conservative factions, particularly the right-wing, are pressuring for tax relief as public sentiments are shifting.
- The potential announcement is seen as a way to invigorate party support amidst internal divisions.
- Inheritance Tax Insights
- Mechanics of Inheritance Tax:
- Affects only a small percentage (approx. 4%) of the population.
- Recent proposals to cut it are criticized for favoring the wealthy while ignoring broader socio-economic issues like poverty and public service funding.
- Political Ramifications:
- The discussion around inheritance tax reflects deeper issues within the party and the public's shifting priorities.
- Voter Reactions and Ceasefire Vote
- Public Sentiment on Gaza Conflict:
- The recent ceasefire amendment proposed by the Scottish National Party (SNP) was not supported by Labour MPs, leading to anger and protests outside their offices.
- Media and Social Media Impact:
- Social media has exacerbated political polarization, often distorting voting records and leading to public outrage.
- The Russia-Ukraine Conflict
- Current Military Situation:
- The Ukrainian counteroffensive has made limited territorial gains despite heavy casualties on both sides.
- Russian military capabilities appear resilient, bolstered by support from non-Western allies.
- Implications of Global Politics:
- The conflict's ongoing nature may be overshadowed by other global crises, risking reduced international support for Ukraine.
- Discussions on military strategy highlight concerns about public sentiment and geopolitical shifts.
- Elon Musk and Advertising Backlash
- Musk's Controversial Statements:
- His social media comments have drawn criticism and resulted in advertisers pulling out, reflecting the intersection of politics, business, and social media dynamics.
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Key Takeaways
- Economic Strategies: The upcoming autumn statement is critical for the Conservative Party to realign public sentiment amidst economic challenges. Tax cuts and support for public services will be pivotal in shaping future political landscapes.
- Public Engagement: The impact of social media on political discourse is profound, leading to increased polarization and misinterpretation of political actions.
- Global Context: The Russia-Ukraine war remains a pressing issue, necessitating sustained international attention and support, particularly as geopolitical dynamics shift.
- Political Accountability: The need for context in political voting records and the dangers of social media-driven narratives are highlighted as critical areas for improving public understanding and engagement in governmental processes.
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Conclusion This episode of "The Rest Is Politics" provides an in-depth analysis of current UK economic policies, public sentiments surrounding the Gaza conflict, and the broader implications of the Russia-Ukraine situation while emphasizing the role of social media in shaping political narratives.
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Transcript
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1:35Welcome to TheRestlessPolitics with MiRori Stewart and MiAlas DiCambo. And Alistair, you wanted to focus us first on Jeremy Hunt, the chance for the XCheckers Autumn statement that's coming up, which looks like it might involve some big cash giveaways. And then you also wanted to engage us on the question of the way that Gaza is still playing in British politics, particularly abuse of labour MPs, Elon Musk in trouble on X, what you used to be called Twitter for his antisemitic comments. We were going to look again at where Russia was with Ukraine, what's happened to the Ukraine war. Maybe first thing, tell us a little bit about why you've been interested in the autumn statement.
2:16Why do autumn statements matter? Are these one of the big events the year and if so, why so? Because there are not many moments in the calendar where a minister or prime minister can stand up in Parliament and make announcements, changes, policy ideas that really have the potential to shift the dial. I would argue that when we were in power, Gordon Brown's budgets and autumn statements were big strategic landmarks most of the time. Now they would fit into our overall strategic plan narrative, call it what you will. That's why they're important. And so my rate, the autumn statements are relatively recent and that they were quite controversial.
2:56The chances used to do it once a year. I mean, the budget used to be the kind of main treasury event and I think it's fair to say that they now see them almost on a par. I'd say the budget is probably still the number one, but it's kind of Champions League against Premier League. That's a football. Yeah, football. For restaurants, yeah, they're struggling with it. Yeah, yeah. So it's a big moment in the calendar. No, I think this is a pretty difficult big moment because the economy is not doing terribly well. Tax is very high, growth is low. The record over 13 years has been pretty grim. But at the same time, it's an opportunity for any chancellor to come in and say, right, okay, here's where you think I was going, but here's where I'm actually going and this is going to get you all terribly excited and change the weather.
3:35And the rabbit out of the hat that he made try to pull is that largely because of inflation, he's ended up with 25 billion pounds more than he was expecting to have. And this is basically because as wages have gone up and wages have gone up quite steeply, you know, 5 .7 % in 2022, 7 .7 % in 2023 in Britain. Which all the private sector wages? Well, even public sector wages have gone up over 7%. So there's been a big jump in wages in general. And the same time, he's frozen the thresholds on income tax and national insurance. So as a result, more and more people are now paying tax. We're going to end up with a fifth of the workforce paying the 40 % tax rate.
4:17Millions more entering these different tax panns for the first time, which gives him this money. And so there's been quite a lot of excitement that people will have picked up in the media over the last week about what he's going to do with it. And clearly, they have been briefing out. They being presumably number 10, number 11, the chance to stop his briefing out that they're going to be using it to cut taxes. And they've definitely briefed out some people that they're going to use it to cut inheritance tax. Now, give me the sense first of why they might set about raising expectations, building expectations of tax cuts a week before the event.
4:50Well, partly because of the pressure that they're under, I think one of the problems with this autumn statement and pretty much anything that happens inside the conservative party at the moment is it's sort of playing out through the power plays of these various factions that we talk about a lot. And the kind of Bravaman wing of the conservative party has been banging on about the need to cut taxes for some time. Now, taxes are very, very high. Taxes are a share of what we put into the economy is higher than any time since the late 1940s. So you can see why any government might want to cut them.
5:21The question is whether that is the right choice. But why they float these ideas? And for what's the time when chancellors who floated anything got the sack, you know, if you've altered, you've got the sack for confirming something that was in the budget to an evening standard journalist, even though he was telling him just before making the statement, and it wouldn't appear in print until after he made the statement, he still had to resign for that. And there's an important principle on that, isn't there, which is that theoretically you could do inside a trading. You could have a absolute huge impact on the market because some of these changes in the budgets happen at the instant.
5:56The chancellors speaks. But if you were to give someone a few days warning, they could make a fortune. And I suspect that they do. And that is why insider trading is frowned upon. It's why particularly around budgets and financial statements, you have anything that's deemed to be market sensitive. You're meant to keep it very, very tied. So they may or may not, for example, be cutting inheritance tax. Why do we know that? Because they've been, as you say, telling people that they bite. Now, why do they do that? I suspect because they want to test the reaction to that as an idea. I suspect now that they won't actually be doing it.
6:32Give us a sense of your reaction. Let's take you as the straw poll. What's the allister reaction to it as an idea? How would it go down if they did it? Well, I don't think I'm necessarily a sort of straw poll on this because I've got quite dare I say well -informed views about it. Based upon the fact that I know that the kind of cut they're talking about inheritance tax will only benefit those people who are already very, very well off. We're talking about 4 % of the population. Richie Sunack, if he were to make this change, he would save himself roughly 300 million. Jeremy Hunt would save himself roughly 5 .8 million if recent assessments of his...
7:13Just to explain why this is so if you're leaving something worth over 325 ,000 like a house, 40 % of that money has to be paid to the government in tax. This isn't normal. So this is not the case in the US and many other places. But in the UK, we have this thing. And one of the reasons why it's very tempting to do it for the government is that it doesn't make a huge difference to public finances. Inheritance tax only brings in about 7 billion a year. Now, that's a lot of money. You can do some very useful stuff for that. But it's not like changing income tax on national insurance or VAT, which produced 2 thirds of the entire revenue of the government.
7:47So getting even a very small change in income tax, national insurance or VAT has tens of billions of pounds of impacts on the public finances. This is one where they might hope that they could get applause from the right of the Tory party, it's pushing tax cuts, do something very dramatic that's not too expensive for them. And threatened to do in 2007, it was a big political moment, isn't it? And some people say it's one of the reasons Gordon Brown didn't go to an early election because George Osborne was going to abolish all inheritance tax up to a million pounds, I think. I just think that the politics of the of the country or the political economics of the country has changed substantially.
8:28Just remind us of the earlier bit for a second, just remind us the Gordon Brown bit and why you think it's changed. Gordon became Prime Minister. There was a lot of Tory, he was pretty popular at the time, he had a couple of big moments early on in his premiership and there was a lot of talk, which I think his people were fueling, that he was going to call a snap general election. Osborne as you say came in with a couple of pretty bold big announcements of which weirdly cutting inheritance tax was one of the big headlines. And at that time in 2007, it seemed to sort of catch imagination in a way, didn't it?
9:01Well, I think it was more that it was it was them on a tax cutting agenda without necessarily people fully understanding it in the way that I think there's a better understanding of it now because we've had a decade of people, I mean, they've been talking about cutting inheritance tax versus the whole time they've been in power. And I think the what's happened is that back then, if you talked about inheritance tax cutting inheritance tax, people sort of saw it as a kind of very aspirational move. Whereas I think now that more people are aware that it affects a very, very small number of people growing because of the reason that you talked about earlier, there are more people that perhaps will be in that bracket.
9:36But it's still a very, very much a minority thing. And that therefore, at the time when you've got a million children in destitution, you've got the schools falling, literally falling down in some places, you've got poverty growing, rough sleeping growing, all these other challenges that people feel, they want the government to address. And that's what I find a bit weird about the debate at the moment. It was kind of refreshing this morning on the today program, Andy Burnham popped up and he was talking about rough sleeping because the rest of the debate, most of the time, is all about this kind of little internal Tory party debate about should it be income tax, should it be national insurance, should it be investment in the blue wall, investment in the red wall, whatever it might be, all about the politics as opposed to actually addressing some of these fundamental systemic problems that we've now got.
10:18Well, let's take it back to that the fundamental systemic problems for a second. So the first big problem in the UK economy is that from the 90s through to 2008, the UK had the second highest productivity growth in the developed world, 2 % productivity growth a year. And productivity really matters, productivity is the way that you sustain economic growth by producing more for the same work. The only other way that you can get economic growth is with more people working more hours, but ideally you want people producing more for the same work. And that collapsed between 2008 -2019, productivity growth in the UK dropped to 0 .5%, which means that average real earnings today in the UK are no higher than they were in 2008.
11:01So that's the sort of big background picture. And the recent picture is pretty bleak too. The UK economy compared to where it was in 2019, pre -COVID is only 1 .8 % larger. And that's actually even after the figures have been adjusted. I think people remember that was this amazing thing, whether the Office for National Statistics changed that number from 0 .2 % to 1 .8 % and compared to last year, it's only 0 .6 % higher. So annual growth seems to be just 0 .6%. So not very, very impressive. And at the same time, inflation really worrying. Inflation's coming down, but inflation's coming down because interest rates have gone very, very high.
11:39And again, I suppose just before I hand back to you, the way in which this is felt by people in Britain is that the average person with a mortgage in Britain is facing an increase for about 2 .5 ,000 pounds a year, all their mortgage because the interest rates have gone from 1 .3 % in September 21 to 5 % now. Which we should perhaps give a little bit of shout out to Elizabeth Truss. My favorite question, Rory, of the thousands that we got for the Q &A, which we were recording later from somebody by the name of Philip van Bergen. He wants to know exactly how did Alistair and Rory manage to harvest inflation when they had no control of international energy prices, nor of interest rates.
12:17Or is it simply a case of sitting back and watching it petriot naturally and claiming it as a result of their policy on the podcast? So I think we should take credit for that, Rory. We just about as much to do with it as the government did. Can I just a serious point on that for a second? One of the weird things is that the way in which inflation is operating seems to be more of a mystery than people are acknowledging. The Bank of England forecasts seem to have been a bit off. Inflation has come down much more quickly than they were expecting. They thought these interest rates would only play through into inflation later.
12:50Then the OBR then forecasts a steeper decline than actually happens. So something is happening in the economy that people don't understand. I remember, I don't know whether I shared this with you, but I remember somebody quite at the heart of government saying that one of the things that's been troubling for them is trying to work out how they make projections given that the Bank of England and the OBR are really struggling to work out what inflation is going to do. That has a big impact because the big call is do you keep your interest rates high for longer to try to stop inflation, but at the same time risk crushing growth?
13:23Yeah, we should probably remind those who haven't listened to our interview with Mark Carney on leading the former Bank of England governor. I got a better understanding of how some of this stuff works from listening to that than I necessarily have listening to a lot of our politicians. There was a wonderful piece by the way by Camilla Cavendish wrote in the who writes every Saturday in the financial times. I think she gave a part of the answer to the problem that you've been highlighting. She pointed out that since Brexit, we've begun what she calls a slow, mournful slide down the OECD rankings before and direct investment.
14:0212th place in 2015, 20th and 2022. She argues and she sits on this thing, the Harrington review, which is Richard Harrington, Lord Harrington, I think he is now my former colleague who entered the House of Commons with me. Okay. Well, he's running this advisory board on foreign direct investment. And something that when I was on Sky News at the weekend on Trevor Phillips show, and Jeremy Hunt and Rachel Reeves were both on the program. And Jeremy Hunt was very dismissive of Trevor Phillips trying to say that the fact that we've had five prime ministers half a dozen chance on eight education secretaries, et cetera, et cetera, et cetera.
14:41Jeremy Hunt was trying to say that this didn't really have much of an impact upon people's understanding of Britain as a place to do business. And she made the point in this column. She called what she called governments in polarity and in coherence. And that the idea that you can do long term planning without any kind of consistency is just for the birds and that we're no longer seen as this is me speaking now rather than Camilla. We're no longer seen as a place where you can have the kind of stability that you need for some sort of certainty. And I thought it was interesting today. I saw Richie Soonat, we're recording as a Monday that the statements on Wednesday, but they're obviously doing a big build up to it.
15:23So Richie Soonat has gone out today and he's now seems to me to have got five new priorities, promises, plans, whatever you call them. Then now if you remember what the five priorities were, Harv inflation, grow the economy, reduce debt, cut weight, and listen, stop the boats. This big five today was reduce debt. That's, we know, that's one that's common to both of this, cut tax, secure energy, back UK business, and world class education. And I just feel that he's kind of casting around and the longer that the Tories have been in power, I think the harder it is for them to keep saying, stick with us a bit more, are we going to do all this stuff?
16:00And that's what I think makes Wednesday particularly difficult for. Yeah. I mean, obviously the big challenge, I think, that faces an incoming labor government or this conservative government is this question of what on earth they do about productivity? Why hasn't been stagnant since 2008? And some of that I think is to do with what happened to the financial sector, financial sector, both the way in which regulations were introduced after the crisis. And then of course, what Brexit's done to it. But the essential idea of how you deal with productivity never changes people talk about putting an infrastructure and education skills.
16:38So the chance that's got his own little list of four just to add to your general confusion about all their lists. He's got his four E's which employment, enterprise, education everywhere. And that again is him trying to solve this productivity problem. So one idea for what they might do with this money, if we step back for a moment and I agree with you, inheritance tax cut seems to be the wrong thing to do and it's not likely to have much effect. Something that maybe is a little bit more appealing is the idea that you extend the full expensing of capital investments. In other words, if a company decides to invest in machinery, they can lay that off fully against tax.
17:18Yeah. And the advantage of that is that it becomes close to free for companies to really put in the capital equipment they want. It's not something actually traditionally that the treasury orthodoxy wanted to do. A lot of a lot of the information I have here and I'm stealing second hand from my friend David Gork who was a treasury minister for a long time. Is there is one of his new state support columns? No, this is me chatting to him on the phone today. This is me swapping up just in case you ask me all the questions on the podcast. Anyway, one of the things he pointed out is that the treasury orthodoxy was always traditionally that what you should try to do is cut corporation tax and then let the companies decide.
17:54This on the other hand, this expensing incentivizes people who are in businesses that require more capital equipment. It favors them a little bit more rather than businesses in general. And therefore, I think maybe a good thing to do if we want to rebuild our manufacturing base and our exports. I think that is exactly this kind of sensible thing that a year before a few months before an election, the Tory government is less likely to do that. Because it's sort of it isn't that grabby. But I mean, that is the kind of move that I think they should be looking at. By the way, also on this Trevor Phillips program at the weekend, as well as Jeremy Hunt, who introduced me to his son as the least tribal person in the country.
18:34I think he was being ironic. I did, however, I did my first words to his son where I hope you'll vote Labour at the coming election if you're old enough. How did he respond to that as the least tribal person in the country? He looked at me in a very sort of warm, friendly pro -Labor kind of way. But the other person who was there was Paul Johnson of the Institute for School Studies, who I think both you and I think is pretty on the ball on this stuff. And he was of the view that there is less room for maneuver than the media seem to think, partly because debt is still so high and debt repayments are so high.
19:09But also, he doesn't think they're going to be able to do that much. So we'll see. I always feel his voice on this is a pretty calm sensible rational one. Two quick things on that. One of them is the, I guess the practice and the others, the politics are on the first bit. One of the choices that would face a conservative or Labour chancellor might be to put that money more into public services instead of into tax cuts. Because what inflation has done is also it's a sort of stealth cut on public expenditure. All the forward plans, if you say you're going to spend, I don't know, 40 billion pounds on policing.
19:44Inflation eats into that and you might keep the headline number but the result is the police would end up with less money. So the decision to hand the money out in tax cuts is a decision really to accept cuts to public services. But that's not fully acknowledged because they're not formally cutting the headline number but that's what inflation is doing. I think another argument that you could make is that it's, and maybe this is what Paul Johnson was implying. It's not that much money 25 billion given how volatile the public finances are. You might prefer to keep it under the mattress because you don't know what might happen to your debt interest.
20:22You know what happened to growth is downgraded. Do you necessarily want to spend it? In fact, I think, if I'm right, when you took over in 97, you didn't have a situation where Ken Clark and John Major hadn't spent all the money and they'd actually built up a little bit of a nest stack which they handed over to you. It was kind of, wasn't it? That was very kind of. On the public service investment point, so those were just you soon, today, saying that world -class education is one of his five new promises. But I don't see how you deliver that when every state, virtually every state school you go into at the moment where the spending is between five and six thousand per head, which is roughly a third of what it costs to educate a day pupil in a private school, one of the top private schools.
21:05I don't see how you do that with that massive investment, paying more teachers, paying them more smaller class sizes, better equipment, better school buildings. So these seem to me like kind of almost meaningless slogans, unless there's a strategy behind them which involves huge amounts of investment. Huge amounts of money and huge amounts of time because children take 10, 15 years to be educated and emerge into the workforce. Roy, let's just briefly acknowledge today we've been, I don't know if you've been able to follow the code inquiry, but what do you lot learn to eat and that Boris Johnson can't even follow a basic graph?
21:40What happens? Yeah, I don't know what happens. I think in his case, he doesn't pay attention. It's one of his major problems apart from many other problems. Listen, just finally on the politics of it, why on earth would they brief out that they were going to unraised expectations of tax cuts in order to please the right wing of the Conservative Party who are angry because the Rwanda Judgment went to get some. So one of the things that's happened to Salas Podkastas, the Supreme Court ruled against sending asylum seekers to Rwanda. And so the right is angering they're looking for something else.
22:09Why brief that out if you're then not going to deliver it? Isn't that taking another kind of risk if on Wednesday the Tory right wakes up and finds that having spent days telling everybody that wants to hear it, that they're going to cut in inheritance tax, they don't actually do it? Well, I think sometimes what happens in the build up to these events, and this may be what happened to Jeremy Hunt when he taught the Daily Telegraph. So there's the Daily Telegraph sort of, you know, Bravaman, Baraj wing of the Conservative Party. They want to hear that, you know, he's going to one passing you law to declare that Rwanda is safe and that Burnley are top of the Premier League.
22:45They'll be part of the same legislation. And secondly, say that they're going to be tax cuts. And I suspect what happened is that he dropped a hint, which they then in the desire for a story and the desire to get talked about in the radio and the television and to please the people on the right, they overrode. And that's why I think over the weekend, they were slightly winding it back. But then today, Rishi Soonak seems to be pumping it up again, albeit for perhaps with a more long -term timeframe. Yeah. Well, there's a lot of very, very interesting challenges given that it's likely the Rachel Reeves is going to be taking over what she does with all that.
23:19And one of the big things to watch given we're talking a lot about tax is is labor going to be brave enough to do something that we've been talking about. I guess since you're in office, which is merging income tax and national insurance because national insurance is a sort of fake tax. It's a tax which pretends to be for a different pot, but the governments perpetually borrowing from that pot. And which really means that the basic rate of tax that's supposed to be 20 % is actually 32 % because it's 20 % and then you pay 12 % national insurance. I did a huge event on Commonwealth Day. It was last week Westminster Property Association.
23:54Lots of property developers and builders and architects and councillors and council executives. It's a huge event at the Groven House. And I did one of my show of hands about who's going to be the Prime Minister. And I won't name the conservative councillors and council leaders who were in the room, but not one single hand went up for Rishi Sunak and a lot went up for Keir Starmer and Rachel Rees. But interestingly, I watched the Rachel Rees interview in the studio with a group of other people, including Paul Johnson and Craig Oliver. He used to work for David Cameron and Trevor Phillips, who was in the chair and also Ann McElvoy journalist.
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24:34And it was quite interesting because insofar as any comments were going out, it was basically about how they felt that what she was offering wasn't quite enough to persuade them that this was like a really, really thought through plan. So they keep coming back to the tax on the non -doms, private school, etc. Now I think they will have to be more than that during in a manifesto and during the campaign. But they're definitely in a place now where people are looking at them with the mindset that says she is the next chancellor. That has its own momentum, I think. Absolutely. And you've got, you know, Mark Kahnney coming out and dorsing her and all these kind of things.
25:10But you're absolutely right. The things that they've signaled so far aren't giving a very, very clear sense yet on what they're actually going to do because, as you say, the taking fear of private schools isn't going to make a huge difference to the public finances. It's something that produced a little bit of money and maybe help many of the issues that you care deeply about. But it's not the big story in public finances and non -doms, definitely, to its small amount of money. Meanwhile, we've got an economy where companies are now beginning to record quite a lot of insolvencies, business investments down, housing investments down.
25:43And the problem is our consumers confident they're going to spend enough because we're a country where 60 % of our GDP is from consumer spending. Yeah. Anyway, there we are. So she's going to inherit her situation where pandemic support has been with drawn, where it's been this energy price shock, where house prices are lower. What is she going to do to get this thing going? And they're both. You've got both the main parties now. We're essentially saying it's all about growth. So it's in a sense is who comes up with the more convincing, more compelling plan that says this will grow the economy.
26:12And I think something else maybe we don't talk about enough in Britain is that the problems that we're facing in Britain, I don't know whether most people listening, given our normal gloomy talk, probably would get the impression that obviously Germany and France are doing much better than us, but they're not. You know, France, it's growth since 2019 is the same as ours. It's growth over last year is 0 .7 % compared to 0 .6 % and Germany has only grown 0 .3 % since 2019 and it's contracting at 0 .4 % this year. Germany's also had a massive hole thrown into its planning by the Constitutional Court, which is just it's a very, very complicated issue, but essentially it means that something that the government was banking on for a lot of its incoming revenue, they can no longer bank on.
26:59But you know, there's nowhere that's doing wonderfully well. So for the US, I mean, which has grown 7 .4 % since 2019, 2 .9 % this year. I mean, it's a different story. And of course, with the Chinese economy faltering and the Eurozone or a lot of the major economies in Europe, not doing very well. Eurozone's actually doing a bit better than Germany, France and Britain. So there we are on the economy and productivity and if people want to hear a lot more on that, then our sister podcast, the rest is money with Robert Preston's staff for the government. They'll be talking loads and loads about that on the back of the autumn statement.
27:32You can hear that on Thursday.
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29:04We've got the gear to keep it organized and protected at the whole depot. How doers get more done?
29:49Welcome back to the rest of the Polities with me, I'm St Campbell. And me, Rory Stewart. And before we get on to MPs and Gaza, a little plug on leading for Aranchugansales, who I think was you enjoyed, but yeah, I did. Former Spanish Foreign Minister, now the head of Ciel Spul in Paris. And I thought of a very, very charming, engaging both politician and foreign policy think of. I enjoy talking to her about her experience as a trade negotiator because that's something that, you know, unless you've done, unless you've been in the kind of engine room of some of those negotiations, I think it's very hard to understand what they're like.
30:26And now I thought she, terrific. It was quite nice because we did it a little while back now and it was a bit of a respite from the fact that we've been Middle East, Middle East, Middle East for obvious reasons. So, should we talk about the Middle East? Yep, let's, I think, let's make a change and talk about the Middle East. I mentioned the Sky Program. And I, Rachel Ruiz gave a very strong answer about some of these protests that have been happening outside MPs, constituency offices and vandalism and graffiti. And I know that there was one near us because Kierstarmel is nearby. And I got quite a lot of grief on social media because I was saying that I I felt that this green party, it was like a poster that they put out where they basically said, here's the full list of the people who voted not to end the killing in Gaza.
31:16And I just think that's the sort of populism and polarization that we can do without right now. Nobody who voted against that SNP motion did so because they wanted more bombs to fall on innocent people in Gaza. Can I come in on this? Because I feel so strongly and I really strongly in agreement with you. But it is amazing how social media weaponizes voting in this way. And this is partly the fault of a website called They Work for You, which is always used sometimes to completely misrepresent what a vote is. So I'll often get if people attack me on Twitter, they'll say people think Rory's nice, but look at his voting record.
31:53And it will say something like, votes had seven times to make Britain more filthy, votes had six times to, you know, harm benefit claimants. And there's nobody posting those things, has looked at the detail of the amendments, the votes. And they've certainly not looked at what's whipped and what isn't. Because part of this is about the fact that as I think I've said before, 90 % of the time you're in a party system way, all you can tell from the voting record is are you voting with your leader or not? And if you're in the government, if you're a government minister or on the government payroll, you kind of have to or you lose your job.
32:24Now, and lots of people think that's a bad system and and they're entitled to that view, but at least try to understand that's what it is. So the Labour leadership having decided whether people like it or not that they weren't going to play along with the SMP. And sorry, just to explain, SMP were pushing for ceasefire, is that right? SMP put down an amendment to the King's speech, essentially called in for ceasefire. And as we've discussed before, Kisthama for various reasons didn't want to come up for that. Yeah. And I think actually it was best summed up for me as things often are in a cartoon, I can't remember which paper I saw this cartoon, but it was a meeting of the Hamas leadership and the leader is saying, change a plan, lads, the SMP have put down an amendment.
33:05And I do think that the extent to which this debate, of course, people feel angry. They feel angry at the Hamas attacks, they feel angry and angry at what seems like this extraordinary military response with lots of, you know, whatever the the true figures are, clearly very large numbers of people being killed, including women, including children, they see babies riding in hospitals and they wanted to stop. The idea that because a labor MP did not vote in support of an SMP amendment put down frankly for, I'm not saying it's not down, it's not what they believe. Of course, they believe it, but they're also putting it down for their own internal, particular reasons as well.
33:47And the only idea that that then is in excuse for these hundreds of people to march on MPs to vandalize their offices, to threaten them and their families. I just think it's is wrong. And I think it puts lots of decent people off from even thinking about politics. I think one thing where I might disagree agreeably with you is that you've said a couple of times over the last few weeks and you've just done it again with the cartoon that something to bear in mind is nobody really cares too much what Britain does or doesn't do. No, I don't. Anyway, if I can have a stab at this, I'd say Kierstahl was still got to take a position that he believes in.
34:23I mean, it's not an excuse to say, well, it doesn't really matter what I say anyway, because Britain's not as important as everyone thinks. So it doesn't matter whether I call for ceasefire, I don't call for ceasefire, because I think European countries together calling for ceasefire if they did would have influence. For sure, but where I agree with you really, really strongly is that this thing of marching on people's offices and the incredible hates on social media. And I think it's the Joe Stevenson Cardiff, her entire office, dorked in red paint with blood on her hands. Naz Shah saying she's been the victim of a lot of his Islamophobic attacks.
35:02It's really horrifying. And this is all about the story we keep coming back to, which is the way in which social media has become this extreme horrifying polarizing force, which basically destroys all trust or faith in political systems and just turns everyone into sort of rage. I was talking to an academic just before we recorded this podcast, who said to me, Rory, I want to set up a system which measures every MP on whether they tell the truth. And if they lie on one thing, it means they can't be trusted and if they can't be trusted, the public should turn against them. And I was listening to him and I thought, okay, on the one hand, I sympathize with you, we all want much more honesty and politics.
35:48On the other hand, that sounded to me like an even more intense, highly aggressive, pure, technical view stoked by social media where you get one strike in your out. This is your voting record, you're an evil person, we're going to spray your office, your counsel, et cetera. I think the green party are perfectly good, do, do, believe the right things in a lot of issues. And but I just think that was a form of politics that I think we needed, we get particularly in this time. Lots of people to social media sort of tap me over it because I made the point, you and I are speaking later this week at an event in memory of Joe Cox, who was murdered, David Amos was murdered.
36:27And they were saying what you were saying is that the green party are inciting people to murder these MPs. I wasn't saying that at a tour. They also said, you printed a list of all the MPs who voted against a people's vote, which I did. But what I didn't do was say that or sort of suggest that there was something kind dishonorable about it. What I was doing was to make sure that people knew I was literally publishing it as a piece of public information. Now the Greens would probably argue they were doing the same. But I think when you're saying here is a full list of the MPs who voted not to end the killing in Gaza.
37:03That was the phrase they used. They voted not to end the killing in Gaza, like it was their choice. Yeah. And this is, this is all comes back to this point about context, doesn't it? Because the one, of course, that we were sort of discussing and slightly disagreeing about a few months ago was Kierstama putting out that tweet saying, do you think that people who sexily abuse children should go to jail, Rishi Sunak doesn't under the conservative government, 1600 of these people haven't been sent to jail? And again, it's all about giving a little bit of context and a little bit of respect to the possibility that politicians are not actually homicide or maniacs or if they're voting in a particular way or passing in a law in particular, it's because they really want to murder people or let off sex libusers of children or have people murdered in Gaza that actually there might be good conscience reasons for people voting in a certain way.
37:55I saw Kierstama recently at Burnley Arsenal game and I mean, you know, it was obvious talking to him just for a few minutes that one, he I think really does feel deeply that people have to stand up for Israel and the Jewish community at the moment. But secondly, it feels that, you know, what is happening as a consequence is utterly horrific. But the point is he's not a commentator and he's not a somebody on a march or somebody signing a petition, he's somebody who might well be Prime Minister quite soon and then be in a position where hopefully he can play a really constructive role in trying to get this thing into a better place.
38:36And at the moment, I think that the inability of people to understand that these issues might be a little bit more complicated than a 280 character tweet. And by the way, talking of which, you said in the introduction about Musk and Musk is denying that he said anything remotely anti -submitting. I think the tweet, well, by the hellies spend so much time liking tweets, presumably just to sort of get noticed, I don't know. But certainly, I think should have avoided the thing that you retweeted. Yeah, just give me the background on this. So somebody tweeted out the Jewish community have been pushing the hatred of whites, which they now claim to want people to stop using against them.
39:15So the theory here is something called the Great Replacement Theory. And the idea is that Western elites have been inverted commas, right? This is the conspiracy theory manipulated by Jews and who want to replace and disempower white Americans. So the idea is that they're basically bringing in immigrants. And this tweet was saying, now Jews are finding out what it's like to bring in all these immigrants because now all these immigrants are demonstrating against Jews. And Elon Musk replying to this says, you have said the actual truth. And Elon Musk thereby endorsing, supporting a pretty well -known trope that is used by these very, very quite dangerous people and actually led to a big anti -Semitic attack that killed dozens of people in the United States, somebody spouting the theory.
40:03Yeah. And so he's now losing lots of advertisers, that nobody cares about that or not. Apple, Disney, IBM, or frozen there advertising. And then today he's come out and said that the election of Javier Miele in Argentina is a great thing that is going to deliver prosperity. So we've got Musk saying that, we've got Trump saying that Miele is going to make Argentina great again. Meanwhile, anyone who wants to see what Miele's up to do, you just shared with us, didn't you? Something actually on Twitter X, showing Miele's latest stunt. Tell us a bit about it. What is going to load of graphic, a load of sort of stickies on the wall with all the names of all the government departments and he's going around saying, don't need education, don't need innovation, don't need science.
40:42But one of his things is that he's going to get rid of 12 government departments along with banning abortion, legalizing the sale of organs. I mean, how have that worked? I don't know if it sounds pretty horrific to me. And just to remind people who didn't listen to the Think Couple weeks ago, this is the Argentinian candidate who has a dog named after Milton Friedman that's a clone that he quotes and walks around with a chainsaw saying that he's going to shred regulations and whose opponent is the Minister of Finance who's presided over one of the most catastrophic economic collapses of all time.
41:14It's quite a choice, isn't it? Well, and the choice has been made and it's going to be really interesting because you've got like Trump as a say musk. Some of the others who come out and said, this is great news. You've got Lula in Brazil who put out a congratulation that was so lukewarm, it was basically not left the fridge. He had Gustavo Petro in Colombia who said this was a disastrous day for Latin America, he's streaming right to one. And he is extremely bright. He's a climate change denier, totally anti -abortion wants to dollarize the pace. But very unpopular with the Pope. He called the Pope a filthy leftist, which I just thought would have harmed him a lot in Argentina, but it doesn't seem to be done.
41:57And his vice president, woman called Victoria Villaruel, she's somebody who thinks that we all, including people in Argentina, we rather overdo the murders of the military regime back in the 70s and 80s that they were just doing their job kind of thing. So Argentina definitely want to watch. And I mean, I don't want to talk about Diego Maradona because I don't like talking about Diego as you know, Roy, but I just wonder what he would make of it all. Your friend would not be happier to all with it, no? I don't think so. My friend who by the way has had a tattoo of Castro on his calf. And if you ask me how I know that, it's because I want to share the show with him.
42:34That's what I'm saying. And apparently he was going to get a tattoo of you on the other calf, wasn't he? But never quite got around. No, you'd have to be silly. You'd have to be very, very silly. Now, listen, I'm just finally on on social media before we move on to Russia, Ukraine. There is no data tool that Twitter X and indeed all the other platforms have made this Israel Gaza conflict completely different. Yeah. To the way these conflicts would have been 20 years ago, there have been 46 ,000 posts with the hashtag Hitler was right. The hashtag Death to Muslims has been shared more than 10 ,000 times.
43:07Anti -Semitic abuse has up 919 % Islamic phobic abuse at 422%. Well, but some have been loud and is become a huge star on TikTok. So much say the Guardian had to take down from their website, been loud in statement about 911 because it was being shared so much. And Russia, China and Iran are using bots, state media, official accounts. A third of the accounts on both sides tweeting about the attack on the hospital were fake to just give you a sense of how much of the stuff is being spread in a very cynical way. Right, well, finally, before we wrap, Russia, Ukraine, which is something obviously we talk about a lot.
43:43And I remember when we were talking about this probably three months ago, and I was being a bit gloomy about it, you said that you actually you'd met some people in a think tank and some generals who thought that I was being too gloomy and that actually the Ukrainians had a better chance. But it's not looking great. No, I mean, this counteroffensive, which was kind of in its full run at the time that I met those guys. This was supposed to change the cause of the war. They had lots of new deliveries of Western weapons and the idea was they were going to punch through the Russian lines and straightforwardly move on towards Crimea and and victory.
44:17And we're talking that made about 10 miles of progress. The figures now is very as with in Israel, Gaza, very hard to trust all the figures. But the Ukrainian Ministry of Defense reckons that the Russians have lost 320 ,000 killed and wounded. American officials reckoned the Ukrainians have suffered 70 ,000 deaths, between 100 and 120 ,000 injured. And yet they've only advanced roughly 10 miles. And the mind you're talking in some parts of the battlefield, a level of land mine that has barely been known in the modern age. So I think there's a real sense of it, frankly being stuck. And of course, because he's a dictator, up against essentially a collection of democracies that are trying to support Ukraine, Putin does feel he has more time.
45:11And he's got these sort of, you know, the Middle East now plays to his advantage because world attention is off it. Congress in America polarized dysfunctional is waiting for Trump who clearly is much closer to Putin's side of the argument. On the economy, sanctions and import controls have had some effect where they far from crippled the economy. Their defense industry, their manufacturing industry and defense seems to be keeping a pace in a way that the West is not. And impossible to know what real public opinion is saying, but it seems to be holding elite support is strong. And the other thing that's happened, of course, is the other countries that, you know, if so, 50 % of Russian imports are now from China.
45:52Russia is exporting masses of oil, both the China and to India. Some of that oil has been refined in India and sent on to Europe. So he's used the diplomatic relations, he's used economic relations. And also with more sinister countries, I mean, I think he's getting a million shells and from North Korea, isn't he? That's proving why they kept that North Korean relationship alive or justifying the way they've kept it alive for the last few years. Yeah. So it's pretty hard. And because the one thing that one of the many things that Zleinsky did very, very well, particularly in the early stages of this was this constant ability to keep the same messaging going around the world, country to country, huge popular support.
46:31And, you know, we live in a very kind of transient world. And there are other, when we talk to come for euro and leading, we talked about some of the other sort of crises and wars that have fallen off the agenda. And the Ukrainians will be worrying that that's what's going to happen to them. Yeah. It is very, very worrying. There's a good article that she had thought by Dominic Lawson, which we can share, making the case why we must not forget about Ukraine, why it really matters. But we're going to have to see a lot more of those articles in the weeks and months ahead. One of the big fights at the moment on the front line is around a place called Avdifka, which is sort of becoming a bit like Bakhmut, which was the place we were talking about in the spring as sort of horrifying, sort of muddy, shelled mess where tens of thousands of soldiers are being killed and injured on both sides as they struggle for a few inches of territory trying to grab it.
47:23A lot of interesting stuff also about the way in which the Ukraine war continues to change the way people think about technology. There's been a huge revolution on the front line in the use of electronic warfare. So electronic warfare being used to fool drones, pull them out of the sky, set up fake satellite installations to divert attack. So obviously because it's a high -tech war, if you can use electronic warfare in the right way, you can really screw with the systems, the machines, the sensors. And yet it's landmines that making this very, very, very hard for them to make the progress that they thought that they would.
48:00The other thing, of course, that Putin's got, he's got these limitless numbers of young men that are just being sent to the front line and essentially, you know, under pain of death if they refuse to, frankly, do as they're told. I wonder as well whether a bit like when Erdogan had his aborted coup, he attempt against him and it seemed to strengthen them thereafter. I wonder if when people look back, they're actually the pregozion incident and the seeming rebellion, whether that was a further point of strengthening for Putin. Well, very hard, isn't it? Because of course at the time, you and I like everybody in the world, thought, my goodness, this is really damaging.
48:38I mean, the fact that you're butler can march thousands of people up the main road and all your troops fall away and they're almost at the gates of Moscow. Well, they turn around really seemed like, you know, the beginning of the end of the regime. And then as you say, somehow, he's feeling more chipper and, you know, the zekonomic growth, and it's not not, you know, it's not a perfect sorry, because inflation's getting out of control. And opinion polls in Russia are not completely reliable, but even so, it seems as though public opinion is now increasingly in favor of peace and against the conflict there.
49:11One more thing, of course, which we've talked about before, but it's also simply military support. I mean, the United States has shipped a lot of these 155 millimeter artillery rounds, which are really desperately needed in Ukraine to Israel. Absolutely. And this is why every time that the, when I mentioned the dysfunctional Congress, every time the America sends military support to Israel, then that's the Ukrainians think, well, maybe that stuff that would have come here. And also the economics of this, I don't know if you ever see the, I'm a was amazed, there's some very good reports that get put up by the UK Minister of Defence, which I see more of in foreign media than actually doing the, in the British media.
49:52So this one I actually picked up reading a French newspaper. But it said that one of these briefing papers at the MOD had done. It said that Moscow produces one to two million shells a year. By next year, they'll produce another one to two million shells. Washington says it will produce 336 ,000. Estonia can manufacture an artillery shell for between four and five thousand. And the Russians, it costs them for exactly the same kind of shell. The cost is 500 pounds. Well, they pay them a lot less, but their machinery is working better. Well, I mean, a lot to get our heads around. I mean, we've talked about this.
50:32And this is a bit of a shout out to people in Ukraine. I mean, we've talked about doing a visit to Ukraine. And maybe bringing a bit more attention back on what's in danger of becoming a more forgotten conflict. And I think the horrible truth is that Putin is sitting there studying these poles in America and thinking, oh, this looks quite good for me. And I'm sadly, I'm beginning to move a little bit closer to your camp and thinking that Biden's age, which I didn't necessarily think was going to be such a big problem because Trump's pretty much in the same bracket that it's sort of become, you know, everybody you talk to in America does sort of seem to be saying, oh, this is a bit of a problem, you know, it is.
51:13And it's so difficult, isn't it? Because it's it's both true and also something that nobody certainly on the Democratic side wants to talk about because the Republicans talk about it so much. So it's difficult to have an honest conversation about it. But his record, I mean, Afghanistan apart, I know that's a big apart, but his record and the economy and his record and some of these foreign policy leadership issues has been pretty good. And he'd be a very impressive one term president, but I think we just have to keep our fingers crossed, but the problem is that things are double problem because his vice president, Kamala Harris is also very unpopular.
51:44And of course, the Republicans will run a campaign saying, you'll vote for Biden and get Kamala Harris. So if he had been prepared either to step aside and let somebody else come through or at least come in with a different vice president, I think he'd be in a stronger position going into the election than he will be. Jolly good. Thank you. Well, on that gloomy note, thank you very much and goodbye. See you soon.
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How does inheritance tax work? How have voters reacted to the ceasefire vote? Are Putin's prospects improving in the Russia-Ukraine war?
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