Is neoliberalism finished, and what comes next? A conversation with Larry Elliott - Richard Murphy

29th October 2025

The UK is stuck in a self-inflicted fiscal trap.

Larry Elliott, former Guardian Economics Editor and my co-author in the Green New Deal, joins me to explain why Rachel Reeves' rulebook is economic guesswork, how the Bank of England is failing to control inflation and why capital controls could help rebuild Britain's productive economy.

Plus, the technology hype cycle, the risk of an AI bubble, and where new political leadership might emerge to take us beyond neoliberalism. And in all that, a message of hope.

00:00 - Introduction: Larry Elliott joins the podcast
02:00 - Rachel Reeves and the trap of fiscal rules
05:30 - The OBR and the limits of economic policy
09:00 – Measuring real outcomes: poverty, inequality, and climate
12:30 – The Bank of England and the myth of inflation control
16:00 – Technology, stagnation, and inequality
19:30 – The AI bubble and financial instability
22:00 – The failures of monetary policy and financial regulation
25:00 – Capital controls and stabilising the economy
28:00 – Wealth, taxation, and fair contribution
30:00 – Larry Elliott's new book: Making Good
32:00 – Optimism, change, and the path forward

What is neoliberalism

In simple terms, neoliberalism is an economic and political philosophy that promotes free markets and reduced government intervention in the economy. It favors policies like privatization, deregulation, and free trade, believing these actions lead to greater prosperity and efficiency.
Less government: It advocates for minimizing government spending, lower taxes, and less regulation on markets and businesses.
Free markets: The core idea is that free, competitive markets are the most effective way to allocate resources and drive economic growth.
Privatization: It supports transferring services, such as utilities, from government ownership to private companies.
Individual liberty: It is based on the belief that individual liberty is best protected by limiting the state's role and emphasizing free markets and private property rights.
Examples: Notable political figures associated with neoliberal policies include Ronald Reagan and Margaret Thatcher.