For anyone who is not an assiduous watcher of Westminster politics, the flurry of government financial statements being delivered by a revolving cast of Prime Ministers (three since early September) and Chancellors (four since July) must be hard to keep up with.

On Thursday, we heard Jeremy Hunt’s Autumn Statement. It was grim to listen to in two ways.

First, the UK economy is clearly in a bleak state. We are likely already in a recession – although the media’s obsession with using the strict definition of two consecutive quarters of economic decline can be grating as it deflects from the wider issue of why growth is so weak. A 0.1 per cent rise in GDP every quarter forever more would mean no future recessions but would also be a sign of a disappointingly unproductive economy.

Second, the prevailing political consensus is to support higher taxes, to devise ever more elaborate state support schemes and to allow red tape and regulation to continue to hamper the productive side of the economy. On spending, in particular, there appears to be virtually no debate about priorities and trade-offs.

IEA spokespeople took to the airwaves over the past few days (see below) to give a free market take on the state of the economy and to provide some ideas on how we might improve productivity, efficiency and prosperity. Although our mission has always been to seek to change the climate of opinion over the long-run, it is also vital that we are part of the day-to-day public debate, illustrating how market solutions are the best remedies to many of our problems.

We are now heading for the highest tax burden in history, matched not only by eye-watering state spending but also continuing budget deficits. There seems to be no political will to seriously consider a range of supply side reforms – such as an overhaul of our antiquated planning system – which might aid economic growth.

If these feel like worrying times for free marketeers, that makes it even more important that we clearly and lucidly enunciate an alternative approach to public policy that would rely on empowering individual men and women rather than increased state central planning over ever more aspects of our lives.

Keeping those market ideas at the forefront of public debate, even if they are met with hostility by many policy-makers, has been a key objective for the IEA in recent days and will continue to be so in the months ahead.

Thanks very much for all your support in promoting these ideas because being a major part of public debate is a prerequisite for changing opinion. That might look like a considerable challenge in present circumstances, but the Institute will continue to rise to the task. 

Mark Littlewood
IEA Director General

A RECIPE FOR DECLINE?



IEA Director General Mark Littlewood’s response to the Autumn Statement was quoted far and wide, including in The Sun, The Daily Mail, and Guido Fawkes. 

Painting a bleak picture, Mark said: “The Chancellor has put the United Kingdom firmly on track for higher taxes, more spending, and lower growth. This is a recipe for managed decline, not a plan for prosperity.”  

You can read the IEA's full statement here, and watch Mark's instant reaction on the IEA YouTube channel here.



Writing for The Times, Mark highlighted how the government's approach to encouraging growth is "dispiritingly top-down rather than bottom-up".

He concluded: "we are now firmly back on the grim trajectory of taxes being ratcheted up, heavy handed regulation leading to sluggish growth, and an ever more difficult scramble to try to fund crumbling services."



Some politicians and commentators have attempted to pin Britain's fiscal woes on Liz Truss's ill-fated 'mini-budget'. However, writing for City AM, IEA Head of Public Policy Matthew Lesh noted:

“The UK’s lacklustre growth cannot be blamed on Truss – whose supply-side reform policies had the explicit goal of reversing the UK’s woeful trajectory. In fact, Hunt’s decision to maintain the corporate tax hike is a key reason for less growth, at least according to analysts at Goldman Sachs.”



And in this week's podcast, IEA Economics Fellow Julian Jessop gave his verdict on the Statement.

Julian argued that the Chancellor was taking a risk hiking taxes when the country is falling into recession. Julian considered the budget to be an over-correction to Liz Truss and Kwasi Kwarteng’s exuberant pursuit of economic growth. Watch here.

iN THE MEDIA

A dire prognosis... New figures this week revealed that the NHS performed 600,000 fewer operations in the first nine months of 2022, compared with the same period in 2019.



Quoted in the Daily Mail, IEA Head of Lifestyle Economics Christopher Snowdon said: “Looking at NHS productivity you would think Covid was still raging. The pandemic helps explains why the backlog built up, but it does not explain why it continues to grow at such a pace.”

Christopher also stressed that the NHS’ decline cannot be attributed to a funding deficit:

“Taxpayers are pouring unprecedented sums of money into the NHS and are tired of hearing excuses. England's lavishly paid management need to be held accountable.”



Taxing times... Writing for The Express, IEA Communications Officer Harrison Griffiths gave his assessment of the Autumn Statement, highlighting how Jeremy Hunt has neglected a growth strategy and “doubled down on maintaining our stagnant economy and institutions”.



Boo to nanny...  The Scottish government published a consultation recommending the banning of alcohol advertisements at sports venues, on billboards, and on buses.

Quoted in The Times, Christopher Snowdon argued that the SNP had been “bewitched by the temperance lobby”. Christopher continued:

“The surest sign that Scottish politicians have fallen down the temperance rabbit hole is the ludicrous proposal to ban the display of alcohol products in shops. The SNP should spend less time trying to win awards from the incompetent World Health Organisation and more time dealing with the real problems Scotland faces.”



Energy policy in meltdown... With Jeremy Hunt pledging £700 million of support for the Sizewell C nuclear power plant, IEA Chief Operating Officer and Energy Analyst Andy Mayer advocated faster and cheaper ways to increase our energy supply.

Quoted in City AM, Andy said: ”There are small modular reactor alternatives, which if proven and cost effective, and with the right reforms to planning and permitting, could be built much more quickly coming on stream before Sizewell C.”



And in his fortnightly column for The Times, Mark reflected on the government's failures to seize the opportunities of Brexit, particularly when it comes to regulation. Read here.

IEA GOES STATESIDE



The IEA took centre stage at this week's annual get together of over 700 free market think tankers and their supporters in New York.

Our Head of International Outreach and EPICENTER’s Director Adam Bartha discussed the state of the European liberty movement during the Atlas Liberty Forum and addressed the challenges of the rising cost of living crisis, Russian aggression towards Ukraine, and the failures of loose monetary policy. 

He highlighted many IEA proposals to alleviate pressure on Europeans by reducing regulatory barriers for trade and energy and ensuring sound monetary policy.



Our DG Policy Adviser Matthew Bowles became a finalist in the John Blundell elevator pitch, where he had 60 seconds to make the case for a long-term student outreach strategy that would change the hearts and minds of youngsters and help us build a more pro-market, liberal future.

The IEA team also distributed 300 publications during the conference to our international partners, many of whom have been translating these books for years. The stand was a popular meeting point for European and African think tankers, who partnered up with the EPICENTER Network and IATP to make both continents more susceptible to classical liberal ideas.



During the Atlas Freedom Dinner, Rachel Whetstone, daughter of our former Chair and Trustee, Linda Whetstone, delivered the first annual Linda Whetstone Toast to Freedom.

Linda was a mentor to hundreds in the liberty movement and an inspiration to thousands. The Linda Whetstone Toast to Freedom will continue to honour the memory of Linda for years to come.

IEA Policy Analyst Alexander Hammond has co-authored a chapter in the latest edition of the Cato Institute’s Handbook for policymakers. Alex’s chapter discusses proposals for U.S. policy towards Africa, covering free trade, sanctions, defence policy, and much more. It can be read here.

If Alex’s chapter piques your interest, The Initiative for African Trade and Prosperity (which he leads) has also started producing YouTube content, which can be viewed here.

IEA DIGITAL


 
Niemietz Answers…In this week’s edition, IEA Head of Political Economy Kristian Niemietz answered questions and dispelled myths about ‘trickle down’ economics. Watch here.



Swift Half with Snowdon... Last week, IEA Head of Lifestyle Economics Christopher Snowdon spoke to financial historian Edward Chancellor about his new book, The Price of Time: The Real Story of Interest and recent monetary policy history. Watch here



Jumping for Joyce... in this week's Parallax Views, IEA Head of Cultural Affairs Marc Glendening spoke to Helen Joyce, author of the book,Trans: When Ideology Meets Reality, to discuss the transgender movement and its implications for free speech and civil liberties. Watch here.



Not all midterms are created equal…And IEA Director General Mark Littlewood spoke to pollster and Founding Director of the Democracy Institute, Patrick Basham about the unexpected results of the United States midterm elections, in which Democrats defied political gravity to perform strongly. Watch here

YOU'RE INVITED!

On Monday 12 December, 12.30-2.30pm, the IEA Book Club will be hosting journalists Harry Cole and James Heale to discuss their latest book “Out of the Blue: The inside story of the unexpected rise and rapid fall of Liz Truss”. This event will take place at the IEA Westminster office and will be chaired by IEA Head of Public Policy Matthew Lesh.

Despite being written off and mocked by even her closest colleagues, Liz Truss slowly but determinedly achieved her goal of taking over 10 Downing Street – only to instantly plunge her administration into chaos and announce her resignation after a record-breaking 44 days. How did she do it? And what exactly went so wrong?

With unrivalled access and insight, award-winning political journalists Harry Cole and James Heale provide the answers, drawing on interviews with Truss’s friends and supporters, as well as her worst critics and rivals, from Kwasi Kwarteng to Michael Gove.

Tracking Truss’s transformation from geeky teenage Lib Dem to Tory PM, with the inside scoop on her first – and only – month in office, Out of the Blue is the unmissable behind-the-scenes account of Britain’s shortest-serving Prime Minister.

This event is exclusive to IEA Book Club members. For more information on the Book Club, please contact [email protected] or follow the link here

CALLING ALL STUDENTS!



Future thought leaders... We are delighted to announce that applications for our Future Thought Leader Programmes for sixth-formers and undergraduates are now open! There will be two weeks for sixth formers in April, and one in July. The undergraduate programmes will be in July and August.

You can find out more information on the programmes, and how to apply here.



Monetary policy essay price... Applications remain 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.