Green Party leader Zack Polanski was called 'totally economically illiterate' by former Chancellor Jeremy Hunt during a heated exchange on ITV's Peston on Monday evening. The clash erupted over Polanski's support for a wealth tax, which Hunt argued would drive investment offshore and damage economic growth.
Host Robert Peston Sets the Stage
ITV News Political Editor Robert Peston, the show's host, framed the debate by noting the importance of economic growth for Prime Minister Andy Burnham. 'How worried would you be if one of his earlier acts were a wealth tax? That would actually drive quite a lot of investment offshore,' Peston asked Hunt.
Hunt responded that he would be 'extremely worried and afraid' if such a tax were implemented, before directly attacking Polanski's stance as 'totally economically illiterate'.
Hunt Warns of Economic Damage
The former Chancellor argued that a wealth tax would 'drive away a lot of wealth creators, a lot of entrepreneurs, a lot of investors'. He emphasised the need for investment to fuel growth, stating: 'Every 1% that GDP goes up is an extra £10-12 billion for John Healey - the new Chancellor - to spend on the NHS or social care, or all the things that we really want. Something like this will actually destroy the investment that leads to that growth. It would be incredibly damaging.'
Polanski Hits Back at 'Neoliberalism'
Polanski, visibly struck by the exchange, defended his position by criticising what he described as '40 years of neoliberalism and trickle-down economics'. He added: 'I'd say politely that you've been at the core of that neoliberal project and I think it's utterly failed around the world.'
Hunt countered by pointing to economic growth over the past four decades, noting that GDP had 'nearly doubled in size' and the UK had grown 'much richer' since the 1980s. 'To try and pretend that that hasn't happened is to ignore all the things that we've learned about wealth creation,' he declared.
Hunt Slams Burnham's Spending Commitments
Steering the conversation back to Prime Minister Andy Burnham, Hunt criticised the new PM for making numerous spending commitments in recent weeks without outlining how he would support wealth creators. The exchange highlighted the ongoing political divide over tax policy and economic strategy.
