What is a fiscal doom loop?

The right-wing party leader addressed supporters at Oxford Airport and set out plans including repealing the 1998 Human Rights Act and leaving the European convention on human rights.

He confirmed that they would detain women and children asylum seekers on arrival, as a policy should Reform win the next election, although he did not name the location to house migrants.

Mr Farage was joined at the event by Zia Yusuf, the party’s head of government efficiency - who quit Reform in June, only to return 24 hours later.

While immigration dominated the discourse, Mr Farage spoke about the UK being in an economic “doom loop”.

It is not the first time the phrase has been used, but what does it mean?

What is a doom loop?

The phrase has become popular across the UK’s political discourse this year.

“Britain is stuck in a complete economic doom loop. We’ve had low growth,” Chris Curtis, the Labour MP for Milton Keynes North told the Guardian in May.

“That’s led to pretty awful cuts. It’s led to public services that are broken. And it’s led to disillusionment and division among the country.”

His comments reflect a feeling that many governments in wealthier nations are battling against.

Here is how the situation has come about, in a brief and simplified summary:

• Wealthier countries are struggling, financially, to fund services. This has been compounded with high interest rates making it harder to borrow money, so politicians then need to either raise taxes or cut services,
• Raising taxes can cause the economy to slow down,
• Cutting services can also reduce the amount of money that residents have if it forces them to seek private alternatives,
• Nobody is happy with either solution,
• Voters will then feel that the government is not listening,
• Fringe parties may then offer bold alternatives and populism can take hold,

Mr Farage has spoken of the “doom loop” but it is actually parties that have not had power before, and seem to be offering alternatives, that can thrive.

Mr Curtis has said that Labour is now battling to fend off voters from looking to Reform.

“Until we get out of that economic doom loop, Nigel Farage is going to become prime minister. I think the stakes are that high,” he added.

“We should be treating the economy as an emergency on the scale of war or the pandemic. The heart of government meeting in the cabinet room every week to smash any obstacle.”

Latest YouGov research has Reform currently polling first, ahead of Labour, Conservatives and Lib Dems.