The Rest Is Politics – Episode 509

Labour's Polanski Problem and the Student Loans Scandal (Question Time)
Date: March 5, 2026
Hosts: Alastair Campbell & Rory Stewart

Overview

In this episode, Alastair Campbell and Rory Stewart respond to listener questions on some of Britain’s most urgent political issues, focusing on the dramatic Denton & Gorton by-election, the growing financial crisis caused by student loans, and the power—and neglect—of British soft power. With their signature blend of debate, wit, and Westminster insight, they discuss the shifting political landscape, intergenerational injustice, and the national identity at a time when Britain is searching for a new narrative.

Key Discussion Points & Insights

1. The Denton & Gorton By-Election: What’s Happening to Labour and Who Are the Winners?

[00:24 – 16:58]

• Background:
  Rory recaps the context: a traditionally safe Labour seat saw Labour drop from first to third place, with the Greens winning (40.9%), Reform UK coming second, and Labour falling to 24.9%. Conservatives lost their deposit with less than 2% of the vote.

  “The combined Green and Reform vote was 68%... almost 70% of people in this constituency voted either for what we call the far right and what I'd be tempted to call the far left.” – Rory Stewart (02:09)

• Labour drifting right:
  Alastair remarks on Labour’s shift towards the centre-right at the expense of their progressive base, arguing that the Greens are gaining because Labour has failed to deliver promised change.

  “The strategy to sort of, you know, have a kind of an imaginary reform voter who’s going to come back to Labour has driven too much of the comms and actually too much of the policy.” – Alastair Campbell (03:37)

• Rise of the Greens and Reform:
  Both hosts highlight that the “centre has completely collapsed.” For the Greens, their vote increased fourfold compared to earlier by-elections—a “rock star moment” for the party. Rory expresses deep anxiety about Reform's 30% polling and the Greens’ economic platform.

  “I think this is a Green Party… close to being pretty economically irresponsible.” – Rory Stewart (06:36)

• Sectarian campaigning and minority outreach:
  Discussion about the Greens’ outreach in Gorton’s British Pakistani community (Urdu leaflets, references to Palestine) and the Tories' targeting of Hindu voters in Harrow raises the question of whether UK politics is mirroring the U.S. in constituency-based foreign policy lobbying.

  “It produced this rather unusual coalition: a Green Party led by a gay Jewish guy… scooping up the vote of quite conservative Muslim voters…” – Rory Stewart (09:38)

• Keir Starmer’s leadership and communications:
  Both co-hosts criticize Labour leader Keir Starmer for his reactionary letter to the Greens post-election, suggesting that owning failure and learning is a better path.

  “Far better to say, yeah, we are going to have to learn lessons from this and we’re going to do it.” – Alastair Campbell (08:16)

• Memorable Moment:
  Alastair’s humor as he critiques Reform’s Matt Goodwin:

  “The guy’s got the charm of this water bottle … your mother may fancy him, Rory, but this is very weird.” (15:31)

2. The Student Loans Scandal: Intergenerational Peril

[16:58 – 26:30]

• Listener’s Story:
  James writes: despite earning in the top 5% for his age and repaying £15,000 since graduation, interest has ballooned his loan from £61k to £85k.

  “The result of this 9% working class student tax trap is it widens the gap between classes and destroys social mobility in the UK.” – Listener James (17:17)

• Systemic Problems:
  Alastair recaps the transition from Blair’s “genuine loans system” where students could see their debt decrease, to the current “Plan 2” system—likened to a graduate tax with RPI+3% interest. He highlights the feeling that students are punished for following the advice to “do well at school, go to university and then try and build a career.”

  “What people in the workforce are saying now is that what they're owing never seems to come down even though they are paying according to the system that they have been given.” – Alastair Campbell (20:56)

• Labour’s (Non-)Response:
  The recent budget decision to freeze the repayment threshold further entrenches the injustice.

• Youth Labour Market Crisis:
  Alastair and Rory explore the collapse in graduate job opportunities since 2022, partly due to AI automation, and the vicious cycle this creates for students and their families.

  “The number of starter jobs has fallen by nearly a third since 2022... The longer under 30s stay unemployed or on the minimum wage... the longer the bank of mum and dad has to stay open.” – Alastair Campbell (22:29)

  “There are approximately 1.2 million recent graduates competing for about 20,000 top tier structured graduate roles … nearly 70 applicants per vacancy.” – Rory Stewart (23:22)

• Emotional Impact:
  The soul-destroying reality for graduates applying to countless jobs, facing constant rejection, and being labeled “snowflakes” despite fierce effort and aspiration.

3. British Soft Power: Forgotten Asset or Missed Opportunity?

[27:03 – 39:06]

• Listener Question:
  Starmer’s government has continued cuts to the BBC World Service. Should the UK “champion and properly fund cultural institutions” to differentiate itself at a time when US soft power is faltering?

• John Tusa Interview:
  Rory highlights his godfather, ex-BBC World Service boss John Tusa, launching a podcast for 90+ year-olds, underlining the power of experience and cultural continuity.

  “Amongst the many other bits of bizarre discrimination we have in our society... we tend to stop taking any interest in anyone who’s over 90. And he’s there to correct that.” – Rory Stewart (28:27)

• The British Cultural Offer:
  Alastair lists “the English language, Shakespeare, the Beatles, amazing theatre… the Premier League,” and spotlights the irony of British media talking down the country’s strengths.

  “We totally underestimate soft power. The BBC, absolutely a big part of it … I think the English language … an incredibly important part of our soft power.” – Alastair Campbell (31:21)

• Identity and Opportunity:
  Both urge the current government to use the global moment—especially America’s retreat—as a chance to reset UK soft power.

  “There would be something quite interesting at a moment where everyone’s in a defensive crouch, to say, actually this needn’t all be about hard power.” – Rory Stewart (34:13)

4. National Identity and the Gap Between Private and State Education

[36:19 – 39:06]

• Listener Liv asks:
  What should state schools teach that private schools do? Rory and Alastair agree: “confidence” is the greatest gap.

  “It’s something to do with confidence … it’s going to be really important in the world of AI … not just how good you are technically … but how you interrelate with other people.” – Rory Stewart (36:41)

  “That’s the thing I notice most is the gap in confidence, the gap in people feeling that they have a voice, that people care what they think.” – Alastair Campbell (37:44)

• Soft Power via Education:
  Alastair wishes every child could have the sports and extracurricular resources of private schools, arguing this would make Britain a “much better country with loads of soft power.” (38:48)

Notable Quotes & Memorable Moments

• On the by-election’s meaning:

  “People are pretty pissed off.” – Alastair Campbell (07:01)

• On Farage and Reform:

  “Farage is making quite big mistakes at the moment. That was a big mistake … have you ever seen him [Goodwin] on television? The guy’s got the charm of this water bottle.” – Alastair Campbell (15:31)

• On soft power:

  “I think soft power is so important. I’m really looking forward to this year’s Soft Power Index. The UK and US nearly always come one and two … I think we totally underestimate soft power.” – Alastair Campbell (31:09)

Timestamps for Important Segments

• Denton & Gorton By-Election Recap and Analysis: – 00:24 to 16:58
• Student Loans Crisis and Youth Labour Market: – 16:58 to 26:30
• British Soft Power & John Tusa Interview: – 27:03 to 36:19
• Private vs. State Education; Social Confidence: – 36:19 to 39:06

Conclusion

In a reflective and at times sharply critical episode, Campbell and Stewart dissect the continued fragmentation of British politics, the unsustainable burden of student debt on a generation, and the failure to capitalize on Britain’s immense cultural assets. If there’s a consensus, it’s that British politics needs bolder honesty, a re-centering of values, and a belief in its own potential, both at home and abroad.