The IEA, while non-partisan, has a strong claim to be the think tank that created Thatcherism, the revolutionary movement that reshaped the country forty years ago. As someone who enjoys reading Thatcher speeches off duty, joining the IEA (see further below) feels like coming home. 

Those who read Thatcher will know she would be disappointed in the current liberal and free market debate. Her core principles, relevant now as ever – stronger individuals within a democratic nation state – need to be reimagined with each age. Unfortunately, sometimes today’s free market debates have often seemed sterile, looking backwards, not forwards. 

This despite the fact that our growth rate is anaemic, our politics dysfunctional, our social cohesion at risk, and our society crying out for change – just as in the 1970s. 

As head of policy for the Kemi Badenoch campaign, my goal was to inject fresh thinking on topics such as the interaction between the 'culture wars' and economics, the dangers of an arbitrary Net Zero target, a more focused and efficient smaller state that allows for substantial tax cuts, and overturning the declinist Treasury orthodoxy on growth. We wanted to show how the values of personal responsibility, accountability and freedom can solve the huge problems our society is grappling with. 

Free from party politics, the IEA has the space to consider how to tackle the issues of our age without being caught up in the day-to-day squabbling of politicians. The IEA can and must speak to supporters of freedom across political parties on social and economic issues, those who stand for liberty across all parties and none. The IEA’s campaigns in recent years on post Brexit freedoms for instance helped create the space for change outside the Conservative hierarchy, led by Mark Littlewood's indomitable spirit of radicalism and restlessness. 

What we need now more than ever is the IEA at its best – setting out a bold new paradigm – not following any political party but setting out a lodestar for change that others can and will follow. The need is for a new Thatcherism that tackles the interconnected problems of our day just as boldly as the IEA tackled Britain's crisis of confidence in the 1970s. l will be joining the Institute of Economic Affairs in early autumn, and I look forward to playing my part in reinvigorating and spreading free market ideas at this crucial moment. It could not be a more exciting project, nor a more urgent one.

Alex Morton
(Incoming) IEA Director of Strategy

CUTTING THROUGH

On Wednesday, the IEA published a new discussion paper edited by IEA Head of Public Policy Matthew Lesh and IEA Head of Political Economy Kristian Niemietz.

The paper, Cutting Through: How to address the cost of living crisis, recommends radical supply-side reform as a way to dramatically reduce costs for households.



The authors suggest that by reducing regulatory barriers and tax burdens in several areas — including childcare, housing, energy, imported goods, food and labour regulation — households could save £9,000 a year.

The report was written up in The Telegraph, cited on the BBC News website, and discussed in The Independent.



Matthew Lesh wrote for City AM; IEA Director of Communications Annabel Denham wrote for The Telegraph Business; Kristian Niemietz wrote for CapX; and Head of the Free Market Forum Sam Collins wrote for Conservative Home.



Kristian also appeared on talkTV to discuss the paper, and Matthew appeared on GB News. We also published a short explainer video, which can be viewed here. You can download a copy of 'Cutting Through' here. 

iN THE MEDIA



Don't believe the hype... Writing for The Times, IEA Head of Lifestyle Economics Christopher Snowdon interrogated claims that tax cuts promised by Tory leadership hopeful, Liz Truss, will have an inflationary effect. 

Christopher pointed to corporation tax as a levy ripe for reduction: "The economy has so many moving parts that if Truss’s plan is ever implemented, we will probably never know for sure whether it made us richer or poorer, but history shows that when searching for a self-funding tax cut, corporation tax is a good place to start."



Slash and burn... IEA Economics Fellow Julian Jessop also commented on claims that tax cuts will exacerbate inflation.

Quoted in The Telegraph, Julian said: "In some ways, tax cuts can help reduce inflation, for example cuts in indirect taxes. Even if there is a bit more [inflation] from a package of tax cuts, that is surely a price worth paying to shield the most vulnerable and boost the long-term growth prospects of the economy."



Energy fat cats... Companies, including Centrica and Shell, have come under fire after they recorded billions in profits, while households are struggling to pay their energy bills.

IEA Energy Analyst and Chief Operating Officer Andy Mayer appeared on ITV's Good Morning Britain to debate whether energy companies should be sharing their profits. He pointed out that the sector already pays a huge proportion of their profits in tax, and that it is essential energy companies invest in long-term solutions, for example Centrica's £2billion investment in gas storage. Watch highlights here.



Panic down under... IEA Head of Public Policy Matthew Lesh wrote for The Telegraph on New Zealand's worsening economic and social woes under Jacinda Ardern's premiership. Matthew pointed to the impact of Ardern's strict lockdown policy and her incoherent economic strategy as drivers of her decreasing popularity.

Matthew noted: "The broader consequences of a nation closing itself off for such an extended period should not be brushed aside. Draconian pandemic policies turned the country inward and fearful of outsiders, scaring away immigrants and damaging trade relations."



Bored with the USA... On Tuesday, IEA Head of Political Economy Kristian Niemietz appeared on BBC Radio 5 Live to discuss the state of the NHS. Kristian highlighted poor health outcomes and emphasised the need for reform. Listen here.



Go for growth... Matthew Lesh appeared on GB News to analyse the Conservative leadership candidates' approaches to tax reform. He argued that the government should resist raising corporation tax, noting that "there's very good economic evidence to suggest that corporate taxes are a big drag on investment and economic growth". Watch highlights here.



The personal is the political... Liz Truss announced this week that she is planning to create a new range of criminal offences to outlaw leering, sexual propositioning and wolf-whistling.

In a letter to The Telegraph, IEA Head of Cultural Affairs Marc Glendening warned that such a move would advance the "woke, New Left agenda of establishing ever more control over how we communicate and conduct ourselves". He noted that Truss risks making the old feminist slogan of the "personal is the political" a sad reality.

Marc also wrote for CapX on how these proposals are symptomatic of an authoritarian tendency to police all aspects of life.

CALLING ALL STUDENTS!

The Economic Thought Leaders’ Symposium is fast approaching. The event will be held 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] by 17 June 2022. You can find out more here.