Sir Jacob Rees-Mogg has welcomed Kemi Badenoch’s plan to model herself on Argentinian President Javier Milei and called for quangoes and government departments to be abolished.

Speaking on GB News Jacob Rees-Mogg said:

“Britain needs shock therapy.

“In an interview for the Financial Times, one of this country’s leading left-wing newspapers, the Conservative Party leader Kemi Badenoch has said she is planning to model herself on Argentinian President Javier Milei.

“Well, let’s look at his record. When Javier Milei took office Argentina was on the brink. Inflation was over 200%, the currency was once again collapsing, zero trust in the government and a bloated state bleeding money.

“Milei acted fast and decisively. He cut government spending, eliminated the money printing that had fuelled inflation, and devalued the peso to reflect real market conditions. It was tough medicine, but it worked.

“In just months, inflation dropped sharply, the country recorded a budget surplus for the first time in over a decade, and markets started to stabilise. Foreign investors returned and confidence began to rebuild.

“Today, Argentina’s economy isn’t just surviving, it’s finding its footing again. And bear in mind, at the beginning of the 20th century Argentina was thought to be one of the great success stories. In 1945 they were richer than Australia.

“It had a terrible time. It’s now coming back as a leaner state, more disciplined finances and a sense of direction that it hasn’t had in decades.

“Its ascent is proof that socialism leads to failure and that freedom and markets lead to prosperity.

“But how would this translate in Britain? Well, the United Kingdom is sitting on a public debt pile of about 100% of GDP, the highest sustained level since the aftermath of World War Two.

“We’re spending over £110 billion a year just on interest payments, more than we spend on education, policing or defence, and much of that is on index linked gilts, meaning inflation pushes the bill ever higher.

“Growth is anaemic, productivity is flat, the tax burden is at a 70 year high, and the state keeps growing, spending, borrowing, regulating, inflating. We are not far from a tipping point.

“But here’s the prescription: a Milei style approach would mean radical surgery. First, stop the bleeding, slash wasteful public spending. Shut down unproductive agencies and quangos.

“Would anyone notice if the following were shut down? This is the Milei trick – get rid of all the junk. The Department of Culture, Media and Sport – gone. Energy, net zero and science department – gone. Defra – gone. Trade and business – gone but keep the board of trade to do trade deals.

“Get rid of the quangos. And just as an hors d’oeuvres let’s get rid of UKRI, ACAS, the FRC, the SPC, the TRA, the LPC, the RPE, the CAC, the GCA, the ORCIC, the PCA, the Arts Council, Ofcom, let’s get rid of Ofcom, particularly the Committee on climate change, the Environment Agency, British Wool – Did you know we still had a British wool quango? The Forestry Commission, and there are dozens of others.

“This is just the beginning, and they could go and any residual work handed over to ministers who are accountable.

“This would save billions, especially if we combined it with a hiring freeze in the public sector. We need to aim ultimately for primary surplus to begin paying down some of our debt, then unleash the animal spirits of the private sector.

“Cut corporation tax, simplify income tax, axe regulations that choke growth. Make Britain a magnet for capital innovation again, reinvigorate the retained EU law act, scrap EU regulations.

“It won’t be painless; Cameron couldn’t even trim the Forestry Commission, couldn’t even prune it. But like Argentina, the UK needs shock therapy, not more slow management of decline.

“We need to shrink the state, tame inflation, restore economic freedom before we go the way of Argentina prior to Milei.

“In short, we must stop printing, stop borrowing, stop socialism, and return the UK to its foundations of freedom and capitalism. This is the only way truly to end the era of managed decline and restore prosperity to everyone.”