In this Institute of Economic Affairs podcast, IEA Director of Communications Callum Price is joined by Editorial Director Kristian Niemietz and former Brexit Minister Lord Frost to discuss Andy Burnham’s ‘Manchesterism’ speech, industrial strategy and Britain’s misplaced sense of affluence. The conversation examines whether Burnham’s vision for regional economic policy represents genuine innovation or rebranded central planning, and why Britain’s political class consistently overestimates the country’s wealth.
Kristian Niemietz critiques Burnham’s rhetoric as ‘straight out of the Mariana Mazzucato playbook’, noting that whilst some proposals like releasing greenbelt land are sensible, the speech presents a false dichotomy where free market advocates supposedly ‘lean back and do nothing’. Lord Frost questions the underlying logic of designating growth clusters and directing where businesses should locate, arguing this approach lacks the ability to sustain prosperity over the medium term. The discussion highlights how Burnham attempts to rebrand the original ‘Manchester School’ tradition of free trade and laissez-faire economics into something closer to ‘city bossism’ and public sector-led activity.
The conversation shifts to examining why Britain behaves like a wealthy country when GDP per capita figures tell a different story. Niemietz argues Britain is around 7% poorer than the Western European average yet makes policy decisions as if it were Luxembourg. Lord Frost reflects on how Britain’s decline isn’t immediately visible because the capital stock deteriorates slowly, leaving people surrounded by ‘the wealth of the past’ whilst the economy falls behind North America and East Asia. The panel explores how this disconnect fuels both NIMBYism amongst affluent groups and left-wing populism from figures like Zack Goldsmith, who promise redistribution without growth.
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