Professor Patrick Minford explains why Britain has barely grown richer since 2007, with average incomes only 4% higher in real terms over 18 years—an unprecedented period of stagnation. Drawing on decades of research, Minford traces the UK’s economic transformation from the “sick man of Europe” in the 1970s through the Thatcher-era liberalization that saw Britain overtake France and Germany in living standards, to today’s return to high regulation and taxation. He presents a causal model showing how entrepreneurial incentives, tax rates, and labor market regulation drive growth—and warns that current government policies are doing precisely the opposite of what the evidence suggests works.

In this wide-ranging conversation with Kristian Niemietz, Minford discusses his econometric analysis of UK growth from 1970-2010, explains why rich entrepreneurs are crucial for economic dynamism, and critiques the wealth tax proposals that he argues would harm rather than help growth. He also addresses Brexit’s economic impact, compares Britain’s regulatory environment to France’s, and offers a stark assessment of Labour’s current economic policies. With over 50 years of experience analyzing UK economic policy, including collaboration with the IEA since the 1970s, Minford provides a provocative challenge to conventional thinking about inequality and growth.

This is essential viewing for anyone interested in understanding Britain’s productivity puzzle and the policy choices that could reverse decades of stagnation, or make it worse.

The Institute of Economic Affairs is a registered educational charity. It does not endorse or give support for any political party in the UK or elsewhere. Our mission is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.

The views represented here are those of the speakers alone, not those of the Institute, its Managing Trustees, Academic Advisory Council members or senior staff.

In this special Christmas edition Institute of Economic Affairs briefing, Head of Media Reem Ibrahim interviews Dr. Christopher Snowdon, Head of Lifestyle Economics. The conversation examines how government regulations and taxes affect traditional Christmas foods and drinks, from mince pies to mulled wine, exploring the expanding scope of nanny state restrictions.

Dr. Snowdon explains the impact of recent regulations including display bans in supermarkets, advertising restrictions before 9pm, and promotional deal prohibitions on foods deemed high in fat, sugar, and salt. They discuss the ultra-processed food debate, calorie labelling requirements, and how items like mince pies and chocolates face similar regulatory treatment to tobacco products. The briefing also covers alcohol duties, the upcoming disposable vape ban, and cigarette taxation where over 80% of the price is tax.

The discussion concludes by questioning whether these interventions actually improve public health outcomes, with Dr. Snowdon pointing to economic growth and prosperity as stronger determinants of health than regulatory restrictions. They examine the nanny state index findings showing no correlation between regulatory intensity and health outcomes, while highlighting the connection between GDP per capita and life expectancy. The message: stop taxing and regulating Christmas festivities and instead focus on policies that deliver economic growth.

The Institute of Economic Affairs is a registered educational charity. It does not endorse or give support for any political party in the UK or elsewhere. Our mission is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.

The views represented here are those of the speakers alone, not those of the Institute, its Managing Trustees, Academic Advisory Council members or senior staff.