**
------------------------------------------------------------
* TALKING POINT, WITH MATTHEW LESH
* LEVELLING DOWN
* ENERGY CRUNCH
* iN THE MEDIA
* IEA DIGITAL
* WE'RE HIRING!

Lockdowns may be behind us, but various interest groups, politicians and civil servants are still threatening to make Britain a less free and prosperous nation.

Perhaps the most serious red flag, that few have ever heard about and even fewer care to oppose, is the government’s draft Online Safety Bill. It is hard to contest that awful activity takes place online — as it does in real life. Yet even as a pandemic demonstrated the power of technology to entertain, connect and empower, we seem to have lost sight of the great benefits of the internet.
[link removed]

The draft Bill seriously threatens privacy, innovation and our ability to freely communicate. It creates a ‘duty of care’ on any website with user-to-user communication, from Facebook and Twitter to Mumsnet. The platforms will be expected to not only censor any content that is ‘reasonably likely’ to be unlawful but most worryingly, ‘legal but harmful’.

It will be up to Ofcom and the Secretary of State to decide what that means through issuing codes of conduct. If companies fail, Ofcom can issue multi-billion-pound fines. The result, to avoid the punishment, will be automated censorship on an industrial scale. I explained the core features of the bill in an explainer video which you can watch here ([link removed]) .

Even as politicians sell these laws as a necessary corrective to the supposed evils of Big Tech, the reality is that all this new regulation will do is cement their powerful market position. Adhering to this new legislation will require compliance teams, automated systems, and moderators that only larger companies can afford — scaring off startups and mid-sized players which provide so much worthwhile innovation.
[link removed]

In a new paper from the IEA out this week, Dr Mikolaj Barczentewicz and I suggest fundamental changes to this legislation are necessary. In the event that government refuses to improve the proposals, at the very least we need an Independent Reviewer of Online Safety Legislation. You can read In Harm’s Way here ([link removed]) .
I spoke about the proposal on Bloomberg Radio and gave comments about the Online Safety Bill to City AM which you can read here ([link removed]) . This coming week the government is expected to spell out more details about the Bill, so there will be much more to say.

Matthew Lesh
Head of Public Policy, Institute of Economic Affairs
LEVELLING DOWN

The government has announced its much anticipated levelling up plan. Among the proposals outlined by Secretary of State for Levelling Up Michael Gove was a promise to devolve more powers to regional mayors and introduce new minimum standards for private rental property.

[link removed]

IEA Editorial and Research Fellow Professor Len Shackleton suggested the plans were of "dubious quality," warning that adding another layer of regional officialdom increases costs and the potential for disputes between rival centres of power.

Len argued that drastically reducing illiteracy, boosting average pay and productivity, increasing life expectancy, lowering crime are not in the gift of government alone. Instead, cutting taxes and reducing regulation would do far more to "promote growth and prosperity across the country as a whole".

His comment were reported in The Times ([link removed]) , Telegraph ([link removed]) and Conservative Home ([link removed]) .
ENERGY CRUNCH

On Thursday, the energy regulator Ofgem announced a 54 per cent rise in the domestic energy price cap from April.

[link removed]

IEA Energy Analyst Andy Mayer said the increase was the result of "Net Zero dogma". While the transition to low carbon will still require gas "for decades," climate policies have diverted investment away from domestic gas, which is the most affordable source of power. His comments were reported in City AM ([link removed]) .

[link removed]

To alleviate the pressures on households the Chancellor Rishi Sunak is offering a £200 discount on all electricity bills – which will involve taxpayers effectively underwriting loans to energy suppliers – and a £150 council tax rebate for many households.

In an opinion piece for Reaction, IEA Economics Fellow Julian Jessop argued that a temporary rebate on energy bills deserves a 'lukewarm' reception. Although the scheme is a better deal for the taxpayer than simply gifting money to suppliers, there is a risk that firms could default on loan repayments. Instead, Julian suggested the government should have a 'fundamental rethink' of its energy policies. Read here ([link removed]) .

iN THE MEDIA

[link removed]-
Brexit benefits... This week the government brought forward the new Brexit Freedoms Bill, and published a ‘Benefits of Brexit’ document, to mark the second anniversary of the UK's departure from the EU.

In her weekly column for The Spectator ([link removed]-) , IEA Director of Communications Annabel Denham pointed out that, while the government is right about the need to systematically review and streamline how retained EU law is repealed, the omission of employment deregulation from its policy document suggests it isn't taking the opportunities of Brexit seriously.

IEA Head of Regulatory Affairs Victoria Hewson was also dismayed by the level of ambition and pace of reforming UK financial regulation after Brexit. Read her comment in the Express ([link removed]) .

[link removed]
Bank raises interest rates... On Thursday the Bank of England Monetary Policy Committee voted to raise interest rates to 0.50 per cent, as the Bank tries to curb a rapid rise in the cost of living.

Dr Juan Castañeda, Member of the Institute of Economic Affairs’ Shadow Monetary Policy Committee (SMPC) and Director of the IIMR, responded that the move signals a "change in policy". The Bank seems to have been caught off guard by the level of inflation, having paid "little attention" to the extraordinary rate of growth in the amount of money broadly defined in 2020 and 2021. Juan concluded:

“Despite this week's decisions... inflation will likely persist in the 5-10 per cent range into 2023 and inflation will not return to the 2 per cent inflation target until the annual growth rate of broad money is reduced."

Read his comments here ([link removed]) . The IEA's SMPC voted in January to increase the bank rate by 75 basis points to 1 per cent. Read the minutes here ([link removed]) .

Meanwhile, IEA Head of Lifestyle Economics Christopher Snowdon appeared on GB News on Friday morning to discuss reports that the Bank of England predicts inflation will peak at over 7 per cent. Christopher told viewers that the latest estimates come as no surprise: IEA economists have been warning for the last two years that reckless money printing would lead to rampant inflation.

And Annabel Denham talked to Nick Ferrari on LBC following the Bank of England Governor Andrew Bailey's suggestion that workers shouldn't demand pay rises. She said: "workers should ask for whatever they think they can get. It is not the Bank of England's job to worry about wages, any more than it is their job to tell energy companies they should lower their prices".

[link removed]
Illiberal teaching... In an article for 1828 ([link removed]) , IEA Head of Cultural Affairs Marc Glendening responded to Brighton and Hove City Council's decision to put all its teachers through a mandatory Critical Race Theory re-education course. Marc questioned whether this was a good use of taxpayers' money.

[link removed]
Right to disconnect... Civil servants in Belgium can no longer be contacted outside normal working hours in an effort to reduce stress amongst the workforce. The right to disconnect mandate has been welcomed by public sector workers but private companies are concerned about its effect on productivity. IEA Editorial and Research Fellow Professor Len Shackleton was quoted by BBC News ([link removed]) saying restrictions on contacting workers outside fixed hours would reduce flexibility – and is just another dose of regulation.

The papers... Annabel Denham appeared on the Sky News Press Preview, unpicking Friday's main headlines. She discussed the energy price cap, rising inflation, the NICs hike – and whether this worsening economic picture could be the undoing of the Johnson Administration. Annabel also took part in the BBC Paper review last Sunday, where topics included the u-turn on mandatory Covid vaccinations for health and social care workers.
IEA PATREON

Thank you to all of you who have already signed up to become an IEA Online Patron. Becoming a Patron grants you VIP access to our latest videos, priority invites to our virtual events, and the opportunity to engage directly with IEA Director General Mark Littlewood and the IEA team. For just a small donation you can get all these benefits and more.

[link removed]

To visit the page and find out more about the IEA’s Patreon, follow the link here ([link removed]) or watch our trailer here ([link removed]) .
IEA DIGITAL

[link removed]
In conversation with Rt Hon David Davis MP... IEA Director General Mark Littlewood welcomed David Davis MP for the latest in our In Conversation series. The pair analysed the economy, with Mr Davis suggesting we cannot tackle the cost of living crisis in a high-tax, low-growth economy, reiterating his opposition to the planned NIC's hike set to come into force in April. Watch here ([link removed]) .

[link removed]
Head to head... Mark also sat down with leader of the Social Democratic Party William Clouston to debate the SDP's latest policy paper, 'The End of Indifference ([link removed]) '. They discussed the SDP's proposals to drastically reduce immigration targets, address the UK's balance of trade deficit, and reform the Bank of England. Watch here ([link removed]) .

[link removed]
The Swift Half... Christopher Snowdon welcomed author and journalist Ed West onto the latest episode of the Swift Half. They discussed the future of Conservatism, Boris Johnson's record in government, the housing crisis and much more! Watch here ([link removed]) .

[link removed]
IEA Podcast... IEA Editorial & Research Fellow Professor Len Shackleton was joined by Professor Stephen Littlechild, former Director General of Electricity Supply and now an academic at the University of Birmingham and the University of Cambridge, for a discussion on the energy price cap. Stephen has strongly argued that the price cap is bad for the UK energy market, describing the policy as a “bull in a china shop”. Listen here ([link removed]) .

[link removed]
Monopolies in the digital market... The final lecture from the joint IEA and Information Technology and Innovation Foundation conference held in November has been uploaded on the IEA YouTube Channel. In this presentation, Minister for Tech and the Digital Economy Chris Philip MP addressed the challenges facing the UK tech sector and warned against monopolies in the digital market. Watch here ([link removed]) .
WE'RE HIRING!

[link removed]

Editorial Internship... The Communications team is also looking to hire an intern to support our editorial output. This is a full-time internship, with expenses paid.

The primary responsibility will be to write, edit and commission articles, draft newsletters, and promote content across all IEA social media channels. You can find out more here ([link removed]) .

CALLING ALL STUDENTS!

We have a several opportunities coming up for students, including exam revision courses, internship programmes, and summer schools. The deadline to apply for these programmes is the 1 April.

[link removed]

Residential Summer School... In partnership with the Institute of International Monetary Research, the Vinson Centre, and the Initiative for African Free Trade and Prosperity, the IEA will host a residential summer school.

This programme is open to undergraduate students and will take place from 27 June to 8 July. It will have four streams: general economics, monetary theory, economic history, and trade and globalisation.

Sixth Form Future Thought Leaders’ Programme... You can also apply to attend a week-long programme for sixth formers which will take place from Monday 25 – Friday 29 July. The week will include lectures, discussions, and debates with expert economists.

Summer School Internship... Last but not least, our summer school internship will start from Tuesday 2 August – Friday 19 August. Interns will participate in lectures, seminars, debates, discussions, as well as workshops on professional and career development.

You can find out more about all of our internship programmes here ([link removed]) , or email IEA Education, Outreach and Programmes Manager Brittany Davis at [email protected] (mailto:[email protected]) with any questions.

MONEY WEBINAR SERIES

You can now register to attend a new series of online webinars hosted by the Institute of International Monetary Research.

This Wednesday, 9 February, economist Mark Skousen will discuss the implications of using Gross Output for the making of monetary decisions. Register here ([link removed]) .

World-leading monetary analyst Professor Tim Congdon will hold a webinar on banking in a free society on 23 February. Register here ([link removed]) .

Professor David Llewellyn will explore whether the regulation pendulum has swung too far in the banking industry on 16 March. Register to watch here ([link removed]) .

============================================================

With a little help from our friends....

** ([link removed])

As an educational charity, the work we do is entirely funded by donations. If you are able to help please click ** here ([link removed])
or contact ** [email protected] (mailto:[email protected]?body=Dear%20Angela%2C)
. Thank you.

And why not get Amazon to donate too?

All you have to do is to start shopping on ** [link removed] ([link removed])
and pick the Institute of Economic Affairs Limited as your chosen charity. The IEA will then receive 0.5% of your spending on most items. Everything else remains the same (and at no additional cost to you).
** Twitter ([link removed])
** Facebook ([link removed])
** LinkedIn ([link removed])

You are receiving this email from the Institute of Economic Affairs
** Unsubscribe ([link removed])
from this list.

© 2022 Institute of Economic Affairs
Institute of Economic Affairs 2 Lord North Street London, London SW1P 3LB United Kingdom

Registered in England 755502, Charity No. CC/235 351, Limited by Guarantee

** Forward ([link removed])
this email to a friend

This email was sent to [email protected] (mailto:[email protected])
why did I get this? ([link removed]) unsubscribe from this list ([link removed]) update subscription preferences ([link removed])
Institute of Economic Affairs . 2 Lord North Street . London, London SW1P 3LB . United Kingdom