* TALKING POINT, WITH VICTORIA HEWSON
* BREAK THE DEADLOCK
* INFLATION BITES
* iN THE MEDIA
* IN CASE YOU MISSED IT
* THiNK 2022
* IEA BOOK CLUB EVENTS

Foreign Secretary Liz Truss announced this week that the government is going to bring forward legislation allowing it to override certain parts of the Northern Ireland Protocol. This had been widely predicted. To help inform the debate on this complex and technical subject, the IEA published my briefing paper on the Northern Ireland Protocol, which you can read here ([link removed]) .

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I have been following this issue closely since it first arose in negotiations with the EU in 2016. I wanted to explain what is in the Protocol, how it has been working in practice, and what the UK and the EU respectively want to do about it. Unusually in these times, I found that the British government's proposals are pragmatic and economically liberalising — and the idea of allowing both UK and EU regulated goods to circulate freely in Northern Ireland should be replicated in the rest of the UK.

The briefing drew on economic data, including the massive diversion of trade from Great Britain, the £500 million of taxpayer money spent on infrastructure, and the lack of evidence to support the idea that Northern Ireland enjoys the ‘best of both worlds’ from UK and EU market access under the Protocol.

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I have been able to discuss the matter on Times Radio ([link removed]) , TalkTV ([link removed]) and in City A ([link removed]) M ([link removed]) . Naturally, the briefing attracted a lot of internet on our Twitter feed ([link removed]) .

It is still to be hoped that we can reach an agreed solution with the EU. More generally though, the impact of customs and regulatory barriers on trade between the identically regulated and economically integrated territories of Great Britain and Northern Ireland should give us pause for thought about the effects of such barriers (that we largely replicate on our trade with the rest of the world) on global trade and competition.

I also gave my thoughts on the Protocol in a short explainer video on the IEA's YouTube Channel, which you can watch here ([link removed]) .

Victoria Hewson
Head of Regulatory Affairs, Institute of Economic Affairs

BREAK THE DEADLOCK

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The Rt Hon Lord Frost CMG welcomed Victoria's paper as a "timely contribution to the analysis of the political and economic situation created by the implementation of the Northern Ireland Protocol."

He supported the report's assessment of the UK government's proposals set out in the July Command Paper and its conclusion that unilateral action would be justified in the absence of an agreement with the EU.

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IEA Director General Mark Littlewood wrote for The Times on the "compelling case" made by Victoria. Read here ([link removed]) . He also appeared on Times Radio to discuss.

The research was also reported across the national press, including the BBC ([link removed]) , Express ([link removed]) and regional press ([link removed]) , as well as broadcast on Times Radio, GB News, and Australian TV.

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The Northern Ireland Protocol deadlock was also a topic of discussion on this week's Live with Littlewood. The panel included Baroness Fox of Buckley, Director and Founder of the Academy of Ideas; Lucy Harris, Political Consultant and former Brexit Party MEP; Darren McCaffrey, Political Editor at GB News; and Victoria Hewson.

Claire Fox argued that the current agreement was a "barrier to allowing the United Kingdom to remain united". Watch the full episode here ([link removed]) .

INFLATION BITES

On Wednesday, it was reported that UK inflation jumped to 9 per cent in the 12 months to April, the highest level it has reached since 1982.

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IEA Economics Fellow Julian Jessop argued that the Bank of England’s "sluggish response" has increased the risk of long-term inflation. He blamed the Bank for failing to keep monetary growth under control and said 'loose monetary policy' could undermine the organisation's credibility.

Julian's comments were reported in the Sun ([link removed]) . Read the full press release here ([link removed]) .

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IEA Director General Mark Littlewood appeared on TalkTV on Wednesday evening to discuss
Thursday's front pages and inflation data. Mark warned that "most people are going to be miserably poorer" as inflation continues to rise. He blamed years of poor economic policy for the current situation. Watch highlights here ([link removed]) .

IEA Head of Lifestyle Economics Christopher Snowdon gave his thoughts on the economic crisis on GB News ([link removed]) . He argued the enormous amount of quantitative easing over the pandemic has contributed to the high levels of inflation.

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On Live with Littlewood, GB News Political Editor Darren McCaffrey argued "the only way to bring down inflation is with some economic pain", suggesting the government is dodging the economic decisions necessary to tackle the cost of living crisis for the sake of popularity. Watch this week's full episode here ([link removed]) .

Dr Juan Castañeda and Professor Tim Congdon, authors of IEA research 'Inflation: the next threat', were praised in The Telegraph ([link removed]) for their foresight on inflation. They argued that the rapid increase in the supply of money in 2020 would lead to high inflation in the coming years. Read their research here ([link removed]) .

iN THE MEDIA

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BBC Question Time... IEA Head of Media Emily Carver appeared on Question Time in Liverpool on Thursday evening. She was joined on the panel by Lucy Frazer MP, Lucy Powell MP, Alyn Smith MP, and Mo Hussein, commentator and former Home Office advisor.

Emily described the Bank of England as "asleep at the wheel" when discussing inflation. She argued not enough attention has been given to the increased supply of money in the economy and that the Bank failed to act decisively to keep monetary policy under control. You can watch her highlights here ([link removed]) .

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Left turn... In an article for The Telegraph ([link removed]) , IEA Director General Mark Littlewood argued a 'social democratic consensus' has returned to the UK and captured the policy agenda of the Conservative government.

He suggested that the Conservatives are wrongly pursuing a mixture of grand state spending projects to bribe northern red wall voters into staying with the party at the next election. Instead, Mark argued that principled free market policies, which can deliver positive change to people lives, ought to be prioritised: "Most voters – in both north and south – don’t want to be appeased, bribed, managed or patronised. They want more control over their own lives."

Wind-fail... Political pressure is growing for a one-off additional tax on energy firms to fund support for customers facing higher energy bills. IEA Senior Advisor Sam Collins said a windfall tax is "inherently a bad idea" on BBC News and reminded viewers that energy firms already pay higher corporation tax than other businesses. Watch highlights here ([link removed]) .

IEA Economics Fellow Julian Jessop appeared on BBC Radio 5 Live on Thursday. He told listeners that "more needs to be done to help low income households but it's not necessary to finance that with an arbitrary windfall tax on energy companies". Julian argued that the Treasury can already afford to support struggling households without raising taxes further as it is currently benefiting from higher tax receipts.

Listen to the full interview here ([link removed]) (from 9mins).

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Unscrew the cap... Ofgem has proposed to update the energy price cap quarterly rather than every six months so that the cap is more reflective of current market prices. The energy regulator hopes that the alteration will enable customers to get falling, or rising, energy prices more quickly than the current system allows.

Writing for CapX ([link removed]) , IEA Energy Analyst Andy Mayer argued that "the whole notion of a ‘price cap’ is really an illusion. It sounds like it means lower energy prices, when in reality higher costs will turn up somewhere, be they on bills, future bills, or the taxes required to pay for increasing borrowing."

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Missing targets... The NHS is likely to miss crucial cancer targets next year, despite the government promising that performance will return to pre-pandemic levels by spring 2023.

Quoted in the Daily Mail, IEA Head of Lifestyle Economics Christopher Snowdon said it was "appalling" that cancer targets are being missed at the same time as one in eight pounds earned in this country is being spent on healthcare. Read here ([link removed]) .

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Back to work... Fresh figures show that UK unemployment is at the lowest level since 1974. Responding to the ONS data, IEA Editorial and Research Fellow Professor Len Shackleton warned that the positive labour market news could be the "calm before the storm", reminding readers that the latest figures predate the recent energy price hikes and the effects of the Ukraine War. You can read his comment in Politics.co.uk ([link removed]) .

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Defund the NUS... IEA Head of Cultural Affairs Marc Glendening welcomed the news that the National Union of Students (NUS) will no longer be eligible for government funding.

In an article for CapX ([link removed]) , Marc said the government is right to sever ties with the NUS. He criticised the union's obsession with identity politics and their anti-democratic and anti-liberal organisational structure, which erroneously claims to represent every student. Marc argued: "we shouldn’t have to contribute financially towards this antediluvian illiberalism."

Marc Glendening also made a detailed critique of 'politicised transgenderism' and postmodernist thought in an article for Conservative Home. Read here ([link removed]) .
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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 get in touch with our Development Director Angela Harbutt at [email protected] (mailto:[email protected]?body=Dear%20Angela%2C) . We thank you for your continued support.
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).
IN CASE YOU MISSED IT

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Are free markets still important?... Parliamentary supporter of the Free Market Forum ([link removed]) , Tim Loughton, Conservative MP for East Worthing and Shoreham, discussed the importance of free market economics in bringing prosperity to people and how Thatcherism inspired him to pursue a career in politics. Watch here ([link removed]) .

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Global Champions... Watch IEA Head of Public Policy Matthew Lesh discuss how the UK can make the most of global trading opportunities here ([link removed]) . This clip was taken from an IEA panel discussion, 'UK Global Champions - A Global Britain approach to trade and foreign policy', which can be watched in full here ([link removed]) .

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Markets & Morality... This week, Sweden and Finland applied for NATO membership, officially ending their decades long military independence. But how enthusiastic should classical liberals be to further expand the military alliance? Adam Bartha spoke to Christopher Preble, Co-director of the New American Engagement Initiative at the Atlantic Council, and Emanuel Örtengren, the Acting Director of Stockholm Free World Forum. Watch here ([link removed]) .

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IEA Podcast... How much is current volatility in financial markets driven by fear or uncertainty about future developments, rather than by concrete economic news?

IEA Communications and Public Affairs Officer Kieran Neild-Ali discussed with Dr Ali Kabiri, who is Head of the Department of Economics and International Studies at the University of Buckingham. Dr Kabiri recently co-authored a report for the Academic Journal, the Economic History Review ([link removed]) , on the role of sentiment in the US economy: 1920 to 1934. The research explored how sentiment moved the economy at critical moments in the 1920s. Listen here ([link removed]) .
THiNK 2022

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We are delighted to announce Peter Higgins will speak at THINK 2022 on entrepreneurship.

Peter specialises in growing organisations through strategic change. He co-founded Charles Tyrwhitt Shirts, where he remains a Director, served as chairman of Cath Kidston until 2010, and is Chairman of two other retailers.

Peter is also Director and a volunteer speaker at Mary’s Meals International, an organisation which aims to provide the most effective help to those suffering the effects of extreme poverty in the world’s poorest communities.

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You can find out more about Peter, his topic, and THINK at thinkiea.com ([link removed]) . If you have queries about group discounts or any other questions, please email IEA Head of Outreach Brittany Davis at [email protected] (mailto:[email protected]) .
IEA BOOK CLUB EVENTS

The IEA Book club have a series of exciting events coming-up! See details below. All these events are exclusively for IEA Book Club members. For more information on the Book Club please get in touch at [email protected] (mailto:[email protected]) or click the link here. ([link removed])

The Chancellors... On Monday 6 June, the IEA Book Club will welcome Sir Howard Davies, British economist, author, and Chairman of NatWest Group, to discuss his upcoming book, The Chancellors: Steering the British Economy in Crisis Time. This event will take place from 6pm at the IEA and will be chaired by IEA Head of Regulatory Affairs Victoria Hewson.

Turning the World Upside Down Again... The IEA will host Lord Nigel Crisp to discuss his latest book, Turning the World Upside Down Again: Global health in a time of pandemics, climate change and political turmoil. This event will be taking place on Thursday 16 June.

How the Woke Won... On Monday 4 July, IEA Head of Cultural Affairs Marc Glendening will chair an event with Joanna Williams on her latest book, How the Woke Won: The Elitist Movement That Threatens Democracy, Tolerance, and Reason. Joanna provides a powerful critique of the intellectual roots of wokeness and how this movement, which poses as radical and left-wing, came to be embraced by some of the most privileged people imaginable.

CALLING ALL STUDENTS!

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We are excited to launch the Economic Thought Leaders’ Symposium at the University of Buckingham from 7-9 September 2022.

The theme for this year’s programme is The Economics of War and Peace. We will discuss topics like trade not war, international institutions, diplomacy and game theory. To apply, please send a CV and cover letter explaining why you’d like to attend, as well as 500 words on promoting the reconstruction of an economy after a war to [email protected] (mailto:[email protected]) by 17 June 2022. You can find out more here ([link removed]) .

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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 29 July 2022. You can find out more here ([link removed]) .

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