The Conservative Party conference has many faces. There are the tedious main hall speeches, in which ministers compete to be noticed by the party faithful. There are the exclusive parties, where prying journalists rush between ministers for the latest gossip, much like hyenas on the hunt. Then there’s the lobbyists, who can be spotted in hushed meetings seeking rent for their industry.

The IEA plays an entirely different role. We promote ideas – highlighting the institutions of a free society and power of markets in solving economic and social problems. There are some who claim these values have fallen out of fashion, even among Conservatives. But, on the ground, the reception could not be more different.

This was demonstrated by the IEA and Taxpayers' Alliance’s ThinkTent, held at the Conservative Party gathering in Birmingham last week.  We hosted eighteen packed-out events across three days, on a wide array of topics and including many big-hitters – such as MPs Jacob Rees-Mogg, Kemi Badenoch and Chris Philp. It was beyond standing room for Kwasi Kwarteng’s In Conversation with the IEA’s Mark Littlewood and TPA’s John O'Connell, with many waiting outside unable to get in. The hour-long discussion was the Chancellor’s longest public appearance across the entire conference.

It was my first conference with the IEA. I could not be more impressed with the hard work and professionalism of my colleagues who put together so many events with such high profile and interesting guests. I had the great honour of participating in six fringe panels, appearing on BBC’s Newsnight and TalkTV, as well as writing a post-conference column in City AM.

The new Conservative government has, to put it mildly, made a rocky start. There is much to be welcomed about Prime Minister Liz Truss’ rhetoric. The focus on growth by cutting taxes and reducing red tape is deeply refreshing. There is, however, much more work to be done to deliver spending restraint to fund tax cuts, to introduce supply-side reform to unlock the economy, and to communicate effectively these ideas.

The challenge ahead is immense. Nevertheless, if the Conservative conference demonstrates anything, it's a willingness – from the top of the government through to party members – for a new approach.

Matthew Lesh
IEA Head of Public Policy

THINKTENT 2022



This year's ThinkTent, hosted by the IEA and Taxpayers' Alliance, was another resounding success.

Across the week, we hosted a range of thought-provoking panel discussions with influential journalists, politicians and policy experts. 

Here are just some of the highlights:



On Tuesday October 4, the IEA was delighted to host the Rt Hon Jacob Rees-Mogg MP, Secretary of State for Business, Energy and Industrial Strategy, for an In Conversation.

This event, chaired by IEA Director General Mark Littlewood,  explored what the government is doing to seize Brexit opportunities and how they plan to unleash innovation. You can watch the full event here.



Later that day, the IEA and TPA co-hosted a much-anticipated In Conversation with the Chancellor of the Exchequer, the Rt Hon Kwasi Kwarteng MP.

IEA Director General Mark Littlewood and Chief Executive of the Taxpayers' Alliance, John O'Connell, put their questions to the Chancellor on the current economic situation and prospects for the future. With many journalists in the room, the event was widely reported on, including by The Spectator. Watch the full conversation here.

These are only a selection of our events at ThinkTent – you can catch up on the full roster here.

In addition to the many panel discussions and interviews we put on, IEA staff appeared across the media throughout the conference.



IEA Head of Public Policy Matthew Lesh appeared on BBC's Newsnight to discuss Liz Truss's growth strategy. Matthew was dismayed by the government's reversal on the 45p income tax rate, but called on the government to keep going for growth.



From Times Radio to ITV News to TalkTV, IEA Director General Mark Littlewood hit the airwaves, giving his thoughts on the Truss administration and the Prime Minister's conference performance. 

iN THE MEDIA



Market mayhem... IEA Head of Public Policy Matthew Lesh wrote for the Daily Telegraph on the market volatility in the aftermath of the government's ‘mini-budget’.

On the market reaction, Matthew noted:

“The markets were already aware of most of the detail prior to last Friday. The new policies announced on the day had relatively minor fiscal consequences. For example, the removal of 45p income tax rate made up just 3% of the package. It is thus implausible that additional government borrowing announced in the statement can fully explain the market movements.”



Go for growth... Writing for City AM,  Matthew Lesh argued that there is no alternative to the government’s pro-growth outlook.  Outlining the scale of Britain’s economic decline, he wrote:

“The United Kingdom has stagnated for the last decade, with productivity growing at the slowest rate since the Industrial Revolution. The country is about one-fifth poorer than Germany and one-third than the United States, on a per capita basis.”



Balancing Act... In The Times,  IEA Director General Mark Littlewood outlined the importance of spending restraint and supply-side reform to the success of the government’s plan for growth. Highlighting the potential benefits of reducing Britain’s regulatory burden, he wrote:

“Can the removal of red tape and unnecessary regulatory burdens swiftly unleash an entrepreneurial boom? On the face of it the potential gains are enormous. Our calculation was that the total cost to the UK economy of the whole panoply of rules and regulations amounts to £220 billion a year. Make those savings and the £150 billion energy package and £45 billion tax cuts announced by the chancellor suddenly appear easily affordable.”



Stand and deliver... Mark was also quoted in the Daily Express responding to the Prime Minister Liz Truss' speech at the Conservative Party Conference.

Mark said: “During her leadership campaign Truss spoke about ‘delivery, delivery, delivery’.She now needs to return to this theme if she’s going to achieve today’s message of ‘growth, growth, growth.”



Don't fear the unpopular... IEA Head of Political Economy Kristian Niemietz has been quoted in The Telegraph discussing free markets and public opinion.

The article by Ed West argues that politicians are duty-bound to push unpopular policies if they believe them to be beneficial. It quotes Kristian’s 2018 blog ‘Beware the Bregalitarians’ on the unpopularity of free market economics:

“Here’s a little home truth: if you are a free-marketeer in Britain in 2018, you are part of a small and unpopular minority. The vast majority of the British public disagree with you on virtually everything. There is majority support for a (re-) nationalisation of energy companies, the railways, water and bus companies.”

REMEMBERING LINDA WHETSTONE

In December 2021 the world lost a titan of the freedom movement, and we at the IEA lost a much-loved trustee, friend and mentor in Linda Whetstone.

Because Covid restrictions were in place at the time of Linda’s death, many could not pay their respects in the way they would have wished.

But later this month there will be a Memorial Service in Linda’s honour. It will take place at 12 noon on Tuesday 18 October 2022 at St Marylebone Parish Church, 17 Marylebone Rd, London, NW1 5LT, and afterwards at the Royal Institute of British Architects, 66 Portland Place, London, W1B 1AD.

Please do join the family there if you can. And if you do plan to attend, please email Linda’s family at [email protected].

CONTINUING LINDA’S WORK

Some have asked how they can also honour Linda in a more practical way to help keep her work alive and thriving. The directors of her beloved Network for a Free Society wanted us to let you know that the charity’s work continues apace – just as Linda would have wanted.

This year has seen NFS (working with the IEA) provide small grants to freedom-loving groups in Burundi, Tanzania, Nigeria, South Sudan, Afghanistan, Turkey, Bosnia, Serbia, Pakistan and Morocco – helping them translate and print books, host workshops and student conferences, distribute CDs and much more.

And, as you read this, further grants are being sent to support yet more projects this autumn in Burundi, Ghana, Nigeria, Armenia and to a multi-country project covering North Africa and the Middle East.

If you would like contribute to Linda’s legacy please do visit the Network for a Free Society website (www.networkforafreesociety.org) , where you can read about the Network’s goals and make a donation directly to NFS via a link to its JustGiving page. Those considering larger gifts might wish to contact Robert Boyd at [email protected].

But please be assured that your gift – however big or small – will be truly appreciated and will help continue and further the work of a truly remarkable, and much-missed, champion of the freedom movement.

IEA ON TOUR

This week involved not just travelling to the Conservative Party Conference, but also around Europe for some of us at the IEA. Our German sister organisation hosted its first Open Summit in Berlin, with EPICENTER supporting the education of hundreds of students who heard from liberal thought leaders, like acclaimed author Johan Norberg and Frank Schäffler, member of the German Parliament.

Moving North to Oslo, the annual Mont Pelerin Society meeting was hosted by Civita. IEA trustee Robert Boyd delivered the final closing toast in honour of Linda Whetstone and her legacy. IEA staff reached out to almost 400 attendees to help ensure Linda's legacy remains alive and that we can continue to support our international partners to translate our materials and reach out to local audiences to promote liberalising reforms. If you’re interested in contributing to the Linda Legacy Fund, please get in touch with Angela Harbutt at [email protected].

The IEA also welcomed a group of young professionals from Sweden's Reform Academy. From regulatory reforms in the tech sector to offering solutions to the energy crisis, our IEA experts shared their views on some of the key challenges that free marketeers face across Europe. To end the visit on an optimistic note, the group discussed with EPICENTER’s Director, Adam Bartha, how to build an EU based on classical liberal principles that would successfully embrace the Core Four Freedoms - freedom of movement of goods, people, services, and capital across the continent.

THE CASE AGAINST PRICE CAPS

As energy prices soar this year, policymakers in the European Union and the United Kingdom have proposed various measures aimed at limiting energy inflation. These include both price controls (such as price caps on natural gas or electricity) and windfall profit taxes on energy companies.

However well-intentioned, these policies are unlikely to succeed. In fact, they might exacerbate the current crisis. High prices are not a market failure; they are the tool through which well-functioning markets convey a crucial piece of information regarding the scarcity of energy supply relative to the demand. High prices incentivise investments to increase the supply of energy while disincentivising consumption.

This briefing reviews the proposed price caps and windfall taxes and explains why they are short-sighted measures with long-term costs that are likely to exceed expected benefits. It closes by suggesting targeted measures to support low-income households and energy-intensive businesses while reducing red tape and other obstacles that prevent a rapid rise in the supply of energy, including renewable energies, nuclear power, and domestic production of natural gas.

CALLING ALL STUDENTS!



Monetary policy essay price... Applications are now open for the monetary policy essay prize, organised by the IEA, the Institute of International Monetary Policy Research and the Vinson Centre at the University of Buckingham.

This year's question is: Are the central banks to blame for the current inflation episode?

To be in with a chance of winning up to £500, you must submit your answer by 6 January 2023. Further details on how to enter can be found here.



In November, we're also hosting a Teacher Seminar at our Westminster office. The event will include presentations from IEA researchers on issues related to the academic syllabus. The focus will be on the history of economic thought, whether forecasting makes sense, and the history of the government debt crisis.

The event will take place on 2 November 2022 from 10am–3.30pm. You can find more information on how to sign up here.