Logo


** Britain’s ratcheting regulatory state
------------------------------------------------------------

By Tom Clougherty, IEA Executive Director

As I wrote in a recent report ([link removed]) for the Centre for Policy Studies, the British state has changed quite fundamentally since the early days of the IEA. In academic jargon, the ‘positive, interventionist’ state has (largely) given way to a regulatory state.

Needless to say, Whitehall still taxes and spends, still provides services, and still clings to (some) public ownership. But more and more over recent decades, the British state has tried to achieve its objectives indirectly, by regulating the conduct of businesses and individuals.

Today, as much as we might bemoan the tax burden, or wish that the tax system had a more neutral, rational structure, it is the regulatory state – in its various manifestations – that imposes the greatest constraints on progress and prosperity.

If we could liberalise land use, fix energy and financial regulation, make sure that emerging technologies were not held up by red tape, and create scope for innovation in public services, many of our most intractable problems would fade away. But it is a lot easier said than done.

One problem is that we do not really understand the regulatory state. We have not got to grips with the way it runs almost on auto-pilot, with new rules and regulations churned out constantly by an amorphous, bureaucratic blob. As successive governments have found, ambitious ‘better regulation’ agendas frequently amount to so much running just to stand still.

Nor do we grasp exactly how regulation undermines growth and initiative, or the true extent of the problem. Often you find that each individual regulation seems reasonable and has at least some justification, but that the combined effect – of a complex web of rules, built layer by layer over years and then decades – is stultifying.

In this context, the government’s ‘Smarter Regulation ([link removed]) ’ announcements, which we discuss in more detail on this week’s podcast ([link removed]) , are a positive step – even if I wish they had gone further in certain areas. Greater transparency, more focus on the initial decision to regulate, and a coherent set of principles to judge regulation against will all help at the margin.

But will the latest iteration of the Better Regulation Framework engender the fundamental change of mindset (and institutional incentives) that I think is needed? Will it live up to the government’s stated ambition of permitting regulation only when ‘absolutely necessary’? Alas, it will not.

The intellectual and political challenge of right-sizing the regulatory state, and subjecting it to rigorous economic analysis, has barely even begun.

[link removed]


** Cutting Through Red Tape | IEA Podcast ([link removed])
------------------------------------------------------------

Director of Public Policy & Communications Matthew Lesh interviews Tom Clougherty, IEA YouTube ([link removed])

Regulation nation… The growth of the regulatory state has changed Britain’s policymaking institutions significantly over recent decades.

Progress is finally being made after years of frustratingly slow Brexit reforms ([link removed])

Matthew Lesh, The Daily Express ([link removed])

Seizing the benefits… New cuts to red tape on businesses is a welcome step towards taking advantage of the opportunities offered by Brexit.
[link removed]
[link removed]


** Debanked: The Economic and Social Consequences of Anti-money Laundering Regulation ([link removed])
------------------------------------------------------------

Anti-money laundering (AML) regulations force banks to cancel the accounts of innocent customers.
* After the government introduced new anti-money laundering (AML) rules in 2017, the number of bank accounts closed increased by 7.5 times (from 45,000 in 2016-17 to 343,000 in 2021-22).
* 170,000 accounts were closed in 2021/22 because banks could not prove that customers were not involved in money laundering or other financial crimes.
* AML enforcement costs banks £34 billion annually, almost double the total budget for policing across the United Kingdom, despite no evidence that the rules reduce crime.
* In 2021/22, for every person convicted of money laundering, 169 people had their bank accounts closed for failure to comply with AML regulations.

Press Release ([link removed])
Full Publication ([link removed])
Share on Twitter ([link removed])

Overzealous regulation is causing debanking ([link removed])

Senior Research Fellow & author Jamie Whyte, CapX ([link removed])

Broader themes… Scrutiny of AML regulations should prompt a wider discussion about the government’s use of private companies as law enforcement.
[link removed]
[link removed]

Debunking Debanking ([link removed])

Jamie Whyte, GB News ([link removed]) & talkTV ([link removed])

Refocus… Politically motivated debanking like that suffered by Nigel Farage are exceedingly rare.

Charities among those ‘most acutely affected’ by anti-money laundering rules, think tank warns ([link removed])

Chief Operating Officer Andy Mayer, Third Sector ([link removed])

Unequal burden… The risk of debanking caused by overzealous AML rules falls disproportionately on certain organisations, including charities.
[link removed]

IEA Latest.
[link removed]

Obesity isn’t behind the sicknote crisis ([link removed])

Head of Lifestyle Economics Christopher Snowdon, The Spectator ([link removed]) & talkTV ([link removed])

Wrong target… Obesity has been steadily rising for decades. It cannot possibly explain the dramatic spike in economic activity over recent years.
[link removed]

Brexit Advisor: Boris Johnson, Negotiations & COVID Lockdowns with Lord Frost | The Swift Half ([link removed])

Christopher Snowdon interviews former Brexit minister Lord Frost, IEA YouTube ([link removed])

Lasting legacy… Four-and-a-half years on, Brexit still has an enduring impact on our constitution, culture, and economy.
[link removed]

Let’s be honest: ‘miracle drug’ Ozempic will be a game-changer on obesity ([link removed])

Matthew Lesh, City AM, p.12 ([link removed]) & Times Radio ([link removed])

Problem solved?… Human innovation unleashed by markets has already made strides towards reducing obesity. Government intervention is unnecessary and ineffective.
[link removed]
[link removed]

Rent controls would be a disaster ([link removed])

Communications Officer Harrison Griffiths, The Spectator ([link removed]) , Editorial Director Kristian Niemietz, CapX ([link removed]) & IEA Blog ([link removed]) & Matthew Lesh, The Daily Telegraph ([link removed])

Shooting the messenger… Politicians cannot simply wish away high rents. They are merely a symptom of real-world economic problems.
[link removed]


** The Crucial Role of Think Tanks ([link removed])
------------------------------------------------------------

Matthew Lesh, LBC ([link removed])

Battle of ideas… Think tanks across the ideological spectrum play a vital role in promoting debate and educating the public.
[link removed]

The gambling suicides myth ([link removed])

Christopher Snowdon, The Critic ([link removed])

Science fictions… Statistics on the link between gambling and suicide are incredibly weak.
[link removed]
[link removed]

Britain's Wealth was NOT Built on Slavery & Colonialism ([link removed])

Kristian Niemietz, New Culture Forum Podcast ([link removed]) & British Thought Leaders ([link removed]) & St. Peter’s College, University of Oxford Modern History Lecturer Lawrence Goldman, IEA Blog ([link removed])

Correcting the record… Contrary to popular myth, empire and slavery did not power Britain’s industrial boom.

Read Kristian’s latest IEA publication, Imperial Measurement: A Cost–Benefit Analysis of Western Colonialism ([link removed]) to learn more.

IEA Insider.


** IEA Book Club Event with Lord Clement-Jones ([link removed])
------------------------------------------------------------

Join us for our next IEA Book Club event with Liberal Democrat Peer Lord Clement-Jones on his latest book, Living with the Algorithm: Servant or Master?: AI Governance and Policy for the Future. Chairing this event is IEA Director of Academic Outreach Syed Kamall.

Date: Thursday, 23rd May

Time: 17:30 - 19:30

Location: 2 Lord North Street, SW1P 3LB
[link removed]
RSVP ([link removed])


** Camp Vinson ([link removed]) 2024
------------------------------------------------------------
[link removed]

The IEA, Vinson Centre, and Institute of International Monetary Research are offering a residential programme at the Vinson Centre, University of Buckingham.

The programme, targeted at undergraduates interested in classical liberalism, includes a series of lectures, seminars, debates, discussions, and social activities.

Dates: 17th - 21st June 2024

Location: Vinson Centre, University of Buckingham
Apply for Camp Vinson ([link removed])


** Applications for Freedom Week 2024 are OPEN! ([link removed])
------------------------------------------------------------

Freedom Week is an annual, one-week seminar which teaches students about classical liberal, free market, neoliberal and liberal perspectives on economics, politics, history and society. It is open to over-18s who are currently attending or about to start university. The week is entirely free to attend: there is no charge whatsoever for accommodation, food, tuition or materials.

Dates: 19th - 23rd August 2024

Location: Cambridge
[link removed]
Apply for Freedom Week ([link removed])
[link removed] [link removed] [link removed] [link removed] [link removed] [link removed] [link removed]
Logo

© 2024 Institute of Economic Affairs. All rights reserved.
You are receiving this email from the Institute of Economic Affairs
Registered in England 755502, Charity No. CC/235 351, Limited by Guarantee

View in browser ([link removed]) | Update ([link removed]) | Unsubscribe ([link removed])