Economics & Social Policy

Finances

‘Without sound finance, you cannot have a strong economy with which to fund public services’ – the moral the Chancellor should choose for his Budget

Policy Exchange’s Research Fellow in Economics, Mike Taylor, sets out the guiding principles with which to judge the Autumn Budget. Highlighting the importance of fiscal sustainability, Mike cautions those seeking to use the Japanese experience to justify higher borrowing, pointing out the limits of any comparison with the UK.

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Northern Ireland

A sensible deal on the Northern Ireland border is very achievable – Brussels and Dublin should stop playing games.

Policy Exchange’s Chief Economic Adviser, Dr Graham Gudgin, sets out how a workable deal on the Northern Ireland border could be delivered – without the return of a ‘hard border’. He says that the Irish Government and European Commission are using the issue for short-term political gain. ​

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Global Britain, Global Solutions

Global Britain, Global Solutions: How British R&D can transform international development

This new Policy Exchange report, published today — written by Economic and Social Policy Research Fellow, Jonathan Dupont — recommends that the UK should double the proportion of its international aid budget spent on research and development, in order to solve the most pressing global challenges and support the Government’s Industrial Strategy. George Freeman MP, Chair of the Conservative Policy Forum, has written a Foreword for the report.

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Universal Credit and the big labour market questions the UK needs to consider

Warwick Lightfoot, Head of the Economics Unit, argues that the controversy over the introduction of Universal Credit is an opportunity to revisit the fundamentals of a modern, market-friendly benefit system. At present benefits extend too far up the income distribution, damaging incentives and productivity as benefit withdrawal pushes effective marginal tax rates to extreme levels. In addition, greater regional variation in benefits, to take account of local labour market conditions, would be a major improvement.

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Central bank challenges after the great recession

Warwick Lightfoot — Policy Exchange’s Research Director and Head of Economics and Social Policy — reflects on present monetary policy challenges, to mark the twentieth anniversary of the Bank of England becoming independent and the creation of its Monetary Policy Committee. Lightfoot argues that the necessary starting point is to recognise that ‘monetary policy was at the heart of the monetary shock in 2007’, and that ‘the policies that have been successful in stabilising the macro-economy have thrown up complex microeconomic problems that will make future policy difficult’.

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Latest Economics & Social Policy Publications

Global Britain, Global Solutions: How British R&D can transform international development

Global Britain, Global Solutions: How British R&D can transform international development

This new Policy Exchange report, published today — written by Economic and Social Policy Research Fellow, Jonathan Dupont — recommends that the UK should double the proportion of its international aid budget spent on research and development, in order to solve the most pressing global challenges and support the Government’s Industrial Strategy. George Freeman MP, Chair of the Conservative Policy Forum, has written a Foreword for the report.

Global Britain, Global Challenges: How to make aid more effective

Global Britain, Global Challenges: How to make aid more effective

Policy Exchange today publishes ‘Global Britain, Global Challenges: How to make aid more effective’. The report makes a strong case for the importance of overseas aid and supports the Government’s commitment to spending 0.7 per cent of national income on aid. The report has a foreword by Scottish Conservative leader Rt Hon Ruth Davidson, MSP; she wrote for The Times today about why “Looking forward, a global Britain should both maintain its world-leading aid budget and be a champion for free trade”.

Defying Gravity: A critique of estimates of the economic impact of Brexit

Defying Gravity: A critique of estimates of the economic impact of Brexit

The models used to assess the economic impact of Brexit were misleading, according to new analysis by Dr Graham Gudgin, Policy Exchange’s new Chief Economics Adviser and the co-author of the report. At the time, the projections made by the Treasury, OECD and IMF were used by the then government and Remain campaign to argue that the British economy would face a significant and permanent loss of income in the event of a vote to leave. A careful analysis of the gravity trade economic models used to generate these pessimistic projections suggests that the impact of Brexit on our economy will be much less significant than the economic consensus constructed at the time of the referendum.

Latest Economics & Social Policy Blogs

Britain, her balance of payments, and the benefits of a flexible exchange rate and open economy

Britain, her balance of payments, and the benefits of a flexible exchange rate and open economy

Policy Exchange’s Head of Economics – and former Special Adviser to three chancellors – Warwick Lightfoot highlights new analysis from the Bank of England that show the UK’s foreign investments have enabled it to withstand a deterioration in the her balance of payments. Coupled with a reduction in the exchange rate, the continuing strength of the UK’s foreign investments means she will be able to weather future economic storms and capitalise on the opportunities presented by Brexit.

Perspectives on the Irish Border and Brexit negotiations

Perspectives on the Irish Border and Brexit negotiations

Two of Policy Exchange’s leading experts on Irish Affairs, former Irish diplomat Ray Bassett and former Special Adviser to the First Minister of Northern Ireland Dr Graham Gudgin, evaluate the Stage 1 Brexit Agreement published last week. Although welcome progress has been made, key issues remain outstanding and have the capacity to present difficultly if not resolved.

Latest Economics & Social Policy News

Latest Economics & Social Policy Events


  • Thursday, 7 December, 2017
    12:00 - 13:45

How can the UK ensure that it is competitive post Brexit? Dominic Raab MP joined an expert panel to offer answers to this question which will have a significant impact upon the wealth of the country following Brexit. This event marked the launch of Everyone has a part to play: Improving the UK’s competitiveness post-Brexit by enhancing the rule of law, a new report from Linklaters on this once-in-a-generation opportunity to reinforce the rule of law and hence the UK’s economic competitiveness and prosperity.

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