Podcast Summary

The Peter McCormack Show: PMQs #002 - Labour's Budget: Another Tax Raid on Working People

Host: Peter McCormack
Co-host: Connor
Date: November 26, 2025

Episode Overview

This episode of The Peter McCormack Show dissects the eagerly anticipated Labour budget, focusing on its implications for taxation, business, the middle class, and broader UK economics. Peter and his son Connor provide a candid, at times scathing, libertarian-leaning critique of Labour’s fiscal policies, their political maneuvers, and the general state of the nation. The first half of the podcast builds anticipation for the budget, discusses leaked details, and reflects on the political climate, while the latter half delivers a post-budget analysis of Chancellor Rachel Reeves' address.

Episode Structure & Key Points

1. Setting the Scene: Building Anticipation

(00:00–05:40)

• Peter opens with his frustration over the country’s direction and the anticipation around the Labour budget, noting the widespread leaks and speculation leading up to the announcement.
• Both hosts acknowledge nerves around doing a direct-to-camera, unscripted "rant" format — but positive feedback from a previous episode spurred them on.
• Connor, representing a younger generation, expresses anxiety over Rachel Reeves’ impending decisions:
  Quote: “I’m scared of what that woman’s about to do.” (01:59, Connor)

2. Reviewing Labour’s Approach and Video Messaging

(03:15–05:40)

• Critical viewing of a Rachel Reeves pre-budget video, dismissed by Peter as “overproduced propaganda.”
• Host frustration at the lack of authenticity and real economic understanding in political communications.

3. Assessing Labour’s First Budget (and Conservative Failures)

(05:40–09:06)

• Peter provides a rundown of Labour’s first budget moves: increases in National Insurance, capital gains tax, VAT on schools, inheritance tax changes — all unpopular yet significant.
• There’s equal criticism for the prior Conservative government’s lack of fiscal discipline and growth of state spending:
  Quote: “Fourteen years, you were dogshit…you grew the size of the state, you borrowed a shit ton of money…” (05:44, Peter)

Notable Insight

• Changes like adding VAT to private schools don’t hurt the wealthy but penalize “those at the margins” trying to access better education for their children.
  Quote: “They just made private school more elitist…taking out people on the edges and opening up places to the rich.” (08:50, Peter)

4. The Reality of Business Taxes

(09:06–13:32)

• Labour campaigned on not raising taxes for working people — yet increased National Insurance for companies, which Peter argues is a cost passed to consumers (“a hidden sales tax”).

• A Ronald Reagan clip is referenced to illustrate how 'business taxes' ultimately fall on working people.

  Quote: “Every tax on business is just a part of the cost of production and the customer winds up paying it when he buys the product.” (11:00, Ronald Reagan)

• Criticism of modern politicians as lacking either intelligence or honesty compared to past leaders.

5. Inflation, Borrowing, and Economic Mismanagement

(13:32–19:44)

• Peter compellingly describes inflation as making “the rich richer and the poor poorer,” blaming both Labour and Conservative governments for short-term, vote-winning economics over real reform.

• Shocking borrowing figures:

  • £180 billion since Labour came to power
  • £370 million borrowed daily
    Quote: “That isn’t just borrowing, that is stealing from your future, Connor, and your kids’ future.” (16:22, Peter)

• Labour’s “impossible” balancing act: investing in public services, driving growth, managing the cost of living, reducing inflation, and cutting debt — all at once.

6. The Political Game Behind the Budget

(19:44–22:06)

• The hosts note Labour’s budget delay as “testing the water” on possible tax hikes and policy rollouts, freezing both decision-making and investment across the country.
• Personal anecdote: plans to open a pizza restaurant were paused over fiscal uncertainty.

7. Broken Promises and Political Evasiveness

(22:06–27:24)

• Keir Starmer’s reluctance to reaffirm the promise not to raise major taxes is highlighted as a spectacle of political evasion, with high praise for journalist Beth Rigby’s grilling. Quote: “If you just came out and you were just like a normal human being…be Reagan…at least being honest…But all this bollocks…you’re wasting our time. We all see through you.” (24:38, Peter)

8. The Real Impacts: Minimum Wage, Business, & Nanny-State Policies

(27:24–31:00)

• The rise in minimum wage, particularly for young workers, is fiercely critiqued for harming youth employment and pushing up costs in hospitality businesses. Quote: “You do not want high minimum wage for young people. …It’s going to cost jobs…more businesses closing.” (27:43, Peter)

• Milkshake/sugar tax is viewed as a disingenuous move — more about raising cash than public health.

Budget Announced: Immediate Reactions

(31:02–47:27)

9. First Impressions: A “Trojan Horse”?

• Peter’s paradox: As a libertarian, he thinks the budget is terrible for business and growth, but — if viewed through a Labour lens — believes Reeves “kind of did a good job” facing impossible constraints.
• He is deeply skeptical of Labour's fiscal projections, citing past forecasting failures. Quote: "Borrowing will fall as a share of GDP… If I could bet against that, I bet it would be wrong." (33:25, Peter)

10. Who Does This Budget Really Serve?

• Dissects the “divide and conquer” voting strategy:
  • The budget, Peter argues, punishes the middle class (“going to work, saving, investing, running a business”) while financially rewarding pensioners, non-workers, those on welfare, and young people.
• Raises authoritarian concerns:
  • £1.8bn allocated to digital IDs (for “tracking”)
  • Suggestions of ending jury trials for some offenses
  • Growing encroachment on free speech Quote: "This is becoming quite an authoritarian government about control...Socialism can seem okay at first, but to maintain it, eventually you have to clamp down on free speech." (36:17, Peter)

11. Critiquing Specific Measures

• Taxes on working people are up for a second budget in a row; freezing tax thresholds means “more people dragged into higher taxes.”

• Some concession: Lifting the two-child benefit cap (helping poorest families), though debated between hosts; debate on whether handouts foster dependency. Quote: “I still think there’s a place in society to try and help and protect the poorest in society.” (43:15, Peter)

• New employment laws and higher staff costs will add even more pressure to business; government should focus on deregulation to spur entrepreneurship.

• Lack of any meaningful incentives or environment for investment and growth:
  Quote: “There’s nothing in there that is going to drive growth. I’m not going to invest anymore, create any new businesses based on this because they’ve made it harder.” (48:12, Peter)

• Continuing decay: The “doom loop” for the middle class, with both inflation and tax making them poorer, while the welfare state grows.

Memorable Exchanges & Quotes

• On Business Taxes:
  “Every business tax is a hidden sales tax… Ultimately, it is a tax on working people.” (11:36, Peter paraphrasing Reagan)

• On Broken Promises:
  “You said in your manifesto you weren’t going to raise taxes on working people…now you won’t give a straight answer. If you came out and were just honest…at least I’d respect you.” (24:38, Peter)

• On Authoritarian Drift:
  “This is very authoritarian and this is one of the warnings…you are the boiling frog. ...That’s the thing that concerns me.” (36:17, Peter)

Areas of (Qualified) Praise

• Investment in nuclear power and small modular reactors (Rolls Royce) is welcomed.
• Removing wasteful government assets, face-to-face assessments for disability benefits, and limiting luxury motability vehicles seen as positives. Quote: “All good things.” (48:08, Peter)

Conclusion: McCormack’s Verdict

• The budget represents another attack on the working and middle class, with nothing substantive for real long-term growth.

• Labour is “desperate to shore up the votes of those who depend on government” while punishing savers, workers, and entrepreneurs.

• Peter believes both Keir Starmer and Rachel Reeves are politically doomed before the next election; “the decay of this country will continue.”

  Quote: “We deserve a better government…there is no world where this Labour government gets a second term.” (52:30, Peter)

Q&A Segment (Starting 54:31)

Highlights

• On billionaires and “zero sum” economics:
  Prosperity grows when everyone’s income rises, not just wealth redistributing from poor to rich.
  • “If there’s inequality but the poor are getting richer too, and the pie grows, that’s a good thing.” (56:00, Peter)
• On voting:
  Peter explains his stance that not voting is a form of protest — and you must “earn my vote.” He refuses to vote for “decline.”
• On Austerity:
  He would support real austerity if it had a credible plan to grow the country, not just tax hikes during decline.

Timestamps for Notable Segments

• 00:00 — Peter’s intro and show overview
• 03:15 — Reaction to Rachel Reeves’ pre-budget video
• 05:44 — Conservative government criticized for past failures
• 09:06 — Explaining the consequences of raising business taxes
• 11:00 — Ronald Reagan clip on “business taxes”
• 13:32 — Inflation: rich get richer, poor get poorer
• 16:22 — £370m/day borrowing: “stealing from your future”
• 22:06 — Keir Starmer’s broken promises interview (Beth Rigby grilling)
• 27:24 — Minimum wage debate & consequences for youth
• 31:02 — Live reaction: budget just finished
• 33:25 — Peter calls Labour’s borrowing projections “bollocks”
• 36:17 — Labour’s authoritarian streak and digital ID concerns
• 47:31 — Positive mentions: nuclear, asset sales, welfare reform
• 48:08 — “All good things” in the budget, but growth still missing
• 54:31 — Listener Q&A section

Tone & Style

• Frank, no-nonsense, and unfiltered — frequent swearing and direct language.
• Libertarian/conservative viewpoint: heavy critique of big state, high tax, and what’s seen as “authoritarian socialism.”
• Occasional humor and personal anecdotes (business, family).

For Further Listening

Those interested should check the show notes for referenced videos (Rachel Reeves and Keir Starmer clips) and relevant economic commentaries discussed in the episode. The discussion is especially valuable for listeners seeking a lively breakdown of UK fiscal politics from the perspective of business owners and economic skeptics.