Economics & Social Policy
Latest Economics & Social Policy Publications
One of the critical areas for a new Prime Minister is to address the challenges in the housing market, and to help turn Generation Rent into Generation Buy. Addressing the housing crisis should be a central feature of economic policy over the remainder of this Parliament and into the next.
Childcare costs in the United Kingdom are some of the highest in the developed world, and they have been persistently so. This is a major factor driving cost of living pressures, and has a variety of deleterious consequences.
Britain is an international outlier in not making proper provision in the tax system for the extra costs of child-raising carried by families. The result, as this paper shows, is that families with young children in the UK pay significantly more in income tax than comparable families in countries like Germany and France. Politicians are finally beginning to wake up to this anomaly and the issue has been raised by Liz Truss in the Conservative leadership election. But it is time that a full beam of light was shone on this bias against family formation and that is just what Philip Booth and Andrei Rogobete have done in this paper.
Latest Economics & Social Policy Blogs
Few dispute the fact that the UK system of childcare is broken. Although around £5.4 billion on childcare, and £3.8 billion on childcare places, is being spent every year on supporting the sector, it remains financially crippling for parents, inflexible, difficult to navigate and there are insufficient places available for those who could benefit. To give a sense of the scale of the problem, a middle-income household will spend nearly 30% of their after-tax income on childcare but only about 5% of their income on energy after housing costs.
Judging by the response yesterday, much of Westminster was surprised at the scale and design of the Chancellor’s cost-of-living support intervention. In political terms, the initial signs are that the Chancellor got it right.
£15 billion was announced yesterday, on top of the £22 billion announced in January, meaning the total cost-of-living intervention amounts to £37 billion, an extraordinary intervention amounting to about 1.6% of GDP.
Ministers have an opportunity to cut taxes, drive supply side reform – and help reduce the cost of living
“My Government’s priority is to grow and strengthen the economy and help ease the cost of living for families.” These opening two lines of the Queen’s Speech provided a powerful message.
Further action is needed to address the cost of living crisis. Also, those affected are not just families, but the vast bulk of households that are being squeezed. If the Government doesn’t appreciate this, then it may have its work cut out.
Latest Economics & Social Policy News
Boris Johnson set out his vision for the United Kingdom on the steps of Downing Street yesterday – in the course of which he embraced many of the ideas championed by Policy Exchange in our series of policy proposals for the next Prime Minister.
The new PM must “seek a new approach to the Irish border issue as part of a broader strategy after Brexit to stabilise and strengthen the Union,” said a new briefing paper by Lord Bew.
Polling commissioned by Policy Exchange revealed massive support for social care being largely free at the point of use and funded out of general taxation.
Latest Economics & Social Policy Events
Wednesday, 26 June, 2019
14:00 - 15:00
For more than 20 years, the funding of long-term social care has been recognised as a central challenge by successive governments. Arguments around it played a contentious part in the Conservative Party’s election campaign in 2017 – with the proposed solution earning the sobriquet “the Dementia Tax”. The difficulty that the present Government has had in mapping a practical way forward is reflected in the failure to publish the promised green paper. But Policy Exchange’s paper, 21st Century Social Care, provides an answer, arguing that the state should fund long-term social care and complete the welfare state, which polling shows has massive support.
Wednesday, 26 June, 2019
12:00 - 13:00
with Rt Hon Lord Adonis, Ray Bassett, Lord Bew of Donegore, Sir Graham Brady MP,and Rt Hon Arlene Foster MLA
Tuesday, 11 June, 2019
17:00 - 18:00
with Rt Hon Lord Darling of Roulanish, Lord Macpherson of Earl’s Court GCB, Rt Hon Nicky Morgan MP, Rt Hon Liz Truss MP.
Wednesday, 12 June, 2019
18:00 - 19:00
Josh Frydenberg was elected to the Australian Parliament in 2010 as the Member for Kooyong. He is the seventh person since Federation to hold this seat. In August 2018, he was appointed Treasurer of Australia and Deputy Leader of the Liberal Party, having previously served as Minister for the Environment and Energy, Minister for Resources, Energy and Northern Australia, Assistant Treasurer – and Parliamentary Secretary to the Prime Minister since the 2013 election.
Monday, 26 November, 2018
18:00 - 19:30
Policy Exchange is… multidisciplinary, highly influential, a productive force in the heart of Westminster and our political system,” said Mark Carney, Governor of the Bank of England, at a Policy Exchange event with Alan Greenspan, former Chairman of the Federal Reserve, and Adrian Wooldridge, The Economist’s Bagehot columnist, to launch their new book, Capitalism in America.
Tuesday, 9 October, 2018
18:00 - 19:30
The launch of: “The Future of Capitalism: Facing the New Anxieties” by Paul Collier.
Monday, 23 July, 2018
17:00 - 18:30
Marking the launch of a new paper, Policy Exchange invites you to a panel discussion on “Is Britain’s Growth Model Broken – and Can Brexit Help to Fix It?” The paper’s author Dr Christopher Bickerton will introduce his research, followed by a panel discussion including the former Permanent Secretary to the Treasury Lord Macpherson of Earl’s Court.
Venue: Policy Exchange
Monday, 2 July, 2018
18:00 - 19:30
Adam Smith is now widely regarded as ‘the father of modern economics’ and the most influential economist who ever lived. But what he really thought, and what the implications of his ideas are, remain fiercely contested. Jesse Norman MP’s book shows how, far from being a doctrinaire ‘libertarian’ or ‘neoliberal’ thinker, Smith offers an evolutionary theory of political economy, which balances the roles of markets and the state.
Thursday, 28 June, 2018
13:00 - 14:30
Secretary of State for International Development Rt Hon Penny Mordaunt MP and Brigadier John Deverell spoke on the strategic role of soft power, outlining how her vision for the future of UK development policy applies in the context of civilian–military cooperation, the interplay between hard and soft power, and the importance of development’s role alongside defence and diplomacy.
Monday, 21 May, 2018
8:30 - 15:45
Policy Exchange hosted a major conference considering the future of the Union, with keynote speeches from Ruth Davidson, Michael Gove, Arlene Foster, Brandon Lewis, Alistair Darling, Jim Murphy and Theresa Villiers. In bringing together speakers from different parties, different nations and opposite sides of the Brexit debate, we demonstrated that unionism can be the bridge between the different elements in our divided society.