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Does English football need an independent regulator? In a report published last November the so-called ‘Fan Led’ Review of Football Governance, which was set up by the government, found that it unequivocally does. My colleague Professor Len Shackleton and I have examined the Review's proposals in detail and you can read our findings in a report, Red Card, published tomorrow.
By way of preview, regular readers of Len's and my work may not be surprised to learn that we are sceptical of the benefits of a state regulator for football, and do not consider that the Review’s findings should have been enthusiastically endorsed by the government.
Professional football should be celebrated as a triumph of self-regulating, civil society institutions that have created a globally successful sporting spectacle enjoyed by fans around the world. Instead a government that claims to support free markets and has committed to regulate only when strictly necessary wants to intrude into the most granular details of running a football club, and override private property rights in the process. What message does this send to trade partners and investors?
Fans who think that a regulator will be their voice in protecting community assets and ensuring the sustainability of their clubs should be careful what they wish for. Heavy regulation in other sectors has not levelled the playing field: big players soak up the costs and adapt, smaller players suffer. The government has wrapped the regulation of football into its plans for 'levelling up' the country. We can only hope that some more careful cost-benefit analysis is forthcoming before any concrete steps are taken.
Look out for the full report on the IEA website tomorrow.
Victoria Hewson
Head of Regulatory Affairs, Institute of Economic Affairs
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SAFE FROM HARM?
The government this week introduced its Online Safety Bill to Parliament. It includes the term "legal but harmful" speech, with the Culture Secretary insisting parliamentary oversight will prevent tech companies from acting overzealously when it comes to removals.
But IEA Head of Public Policy Matthew Lesh warned that "Big Tech will still be forced to censor legal speech, and take a cautious approach to anything that could potentially be unlawful, or else face massive fines."
He described the Bill as "an incoherent mess that will seriously undermine free speech and privacy". Read his response, which was quoted in Reuters, in full here, or watch a clip of Matthew discussing the issue on Tom Harwood's GB News show here.
IEA Head of Regulatory Affairs Victoria Hewson also appeared on TalkRADIO this week to debate the Bill. She said that the incentives on platforms to filter and block content to save themselves from fines and criminal liability will have terrible negative effects on technology and innovation. Putting criminal liability on tech execs for not complying with the state censorship regime, Victoria warned, was redolent of Putin’s Russia. Watch here (from 1:18:00).
Matthew recently co-authored an IEA report on the Bill with Mikołaj Barczentewicz, Senior Lecturer in Law at the University of Surrey. If government is unwilling to fundamentally rewrite the Bill, the paper suggests an Independent Review of Online Safety Legislation be appointed to provide "serious, independent scrutiny mechanisms to prevent regulatory and ministerial overreach". Read here.
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TOO LITTLE, TOO LATE?
On Thursday, the Bank of England's Monetary Policy Committee voted 8-1 for a 0.25 percentage point rise in interest rates, marking the third increase in recent months and bringing rates back to their pre-pandemic level.
Responding to the news, IEA Economics Fellow Julian Jessop said:
“The Bank of England has again chosen to do the bare minimum.
“Fears that further hikes will hold back the economy are misplaced. The real threat to economic growth and living standards would come from a sustained period of high inflation, not what are still only small changes in short-term interest rates.
“A bolder move would have sent a clearer signal that the Monetary Policy Committee is serious about getting inflation back under control."
Read his comment in full here.
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IMPROVING TRANSPARENCY
The government has tabled an amendment to the Subsidy Control Bill that will lower the threshold for disclosure to £100,000 – a significant decrease from the £500,000 threshold in the original Bill.
This comes after an IEA briefing warned billions of pounds of handouts could remain hidden under the higher threshold. Its author, IEA Head of Public Policy Matthew Lesh, said in response to the development:
"The public are entitled to know how our money is being spent; these amendments will go a long way towards improving transparency and protecting taxpayers."
Matthew also wrote an opinion piece for City AM this week, setting out the key points from his paper. He wrote:
"Business Secretary Kwasi Kwarteng has declared that the Bill will 'empower public authorities across the UK to deliver financial support – without facing burdensome red tape'. That does not mean 'red tape' in the sense of burdens on businesses, but rather, making it easier for the British state to pick winners and losers. So, keeping alive more unproductive businesses, discouraging innovation, and wasting taxpayer money."
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iN THE MEDIA
State of the economy... With the Chancellor indicating that the decision on hiking National Insurance Contributions has ben made, IEA Director General Mark Littlewood told The Sun that the increase "is effectively a tax on jobs".
Mark also appeared on Alastair Stewart's GB News show yesterday to discuss the forthcoming Spring Statement, warning that we may be "at the taxable limit of the economy". He suggested that, when we talk about the "cost of living crisis," we should bear in mind that "the biggest cost of living for virtually everyone is the tax they pay".
Being your own boss... Writing for the Business section of The Daily Telegraph, IEA Director of Communications Annabel Denham warned the self-employed now face a pincer movement of higher taxes and increased regulation.
She warned: "If the government isn’t already paying the price for its treatment of these workers, it may well be soon. Raise the cost of doing business and it follows that less business will be done. And less business being done will leave our fiscal hole even deeper."
Oil is not well... IEA Energy Analyst Andy Mayer discussed Boris Johnson's trip to Saudi Arabia, for talks about ending reliance on Russian energy after the invasion of Ukraine, on Jeremy Vine's BBC Radio 2 show. Andy said: "We have left ourselves in this mess by not investing in domestic sources of oil and gas... in the immediate term the Prime Minister has no alternative than to find other sources of imports". Listen here (from 5m50).
Andy was also quoted in City AM on the need to secure our energy supplies if we are to stop importing Russian gas and transition to a decarbonised economy responsibly. He pointed out that "previous governments picked technology, production, and climate targets, not a carbon price" rather than "leaving delivery of the best path to the market".
Seeking refuge... IEA Head of Media Emily Carver wrote her column for Conservative Home on the government’s Homes for Ukraine scheme. While the scheme will come up against bureaucratic hurdles, if successful, Emily argues it could provide a model for what happens when government hands back power to the individual, households, and civil society.
Protecting the realm... In her latest column for The Spectator, Annabel Denham asked whether the era of the "peace dividend" – where governments have diverted their attention towards domestic policy priorities rather than external security threats – is over. And, if the UK needs to increase defence spending beyond 2.2 per cent of GDP, how will we pay for it?
Dragged into difficulty... IEA Economics Fellow Julian Jessop told Fortune Magazine that "it may well be middle-income households who are hit hardest in the coming months". He noted that lower earners will benefit most from a November cut in the rate at which benefits are reduced as income from work increases, as well as a rise in the national living wage planned for April. Read the article in full here.
On the front pages... And Annabel Denham appeared on BBC Papers on Thursday evening with broadcaster Matthew Stadlen. They discussed, among other things, the sacking of 800 P&O Ferries staff, the interest rates hike, and the news that DVLA staff were "off work on full pay" amid the application backlog crisis. Watch here.
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IEA DIGITAL
Not by halves... In this episode of The Swift Half, IEA Head of Lifestyle Economics Christopher Snowdon interviews comedian and author Geoff Norcott. They discuss all manner of topics from diversity quotas to Ukraine, from Boris Johnson to education, and, of course, comedy. Watch here.
In Conversation with... Australian Senator James Paterson spoke to IEA Head of Public Policy Matthew Lesh about the response to Russia’s invasion of Ukraine, what the world can learn from Australia’s approach to the rise of China, and the state of liberty Down Under. Watch here.
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CALLING ALL STUDENTS!
We have launched the 2022 Dorian Fisher Essay Competition. Named after the beloved wife of our founder Sir Antony Fisher, this is our biggest essay competition of the year, exclusively for A-Level and IB students.
First prize will receive £500, with a separate prize of £500 for the school with the highest number of entrants. The deadline for this year’s competition is Friday 29th July 2022. You can find out more here.
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.
Due to high demand, we are pleased to announce that an additional week of the Sixth Form Future Thought Leaders’ internship will also take place at the IEA between Monday 18 – Friday 22 July. This week-long programme for sixth formers is a way to get experience discussing economic ideas and concepts beyond the exam curriculum.
To apply, please send a CV and short covering letter to IEA Outreach Coordinator Thomas Robinson at [email protected] explaining why you would like to take part.
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.
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.
The deadline to apply for these programmes is 1 April. You can find out more about all of our internship programmes here, or email IEA Head of Outreach Brittany Davis at [email protected] with any questions.
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