Thinktanks and Corporations

What is a think tank?

• Group of experts who investigate topics and develop solutions and policies fort issues

• Have political leanings/strong connections to parties

• usually to research and develop ideas in specific areas ie. education/economy

How are think tanks influential?

• Ideas for gov- (used to inform decisions/form policy)

• Depends on the gov in power- have to be aligned to have any real impact

• Criticised for being filled with young people wanting to start their political career ie. David Milliband and Institute for Public Policy Research

  • policies more idealistic/impactical

Thinktanks that align with different parties (recent): FINISH

• Labour Together is close to Keir Starmer

  • works to get Labour into power

• Onward - close to Rishi Sunak (centre right)

• IEA: Truss

• Adam Smith Institute: Cons

• Fabian Society: Labour

Evidence of think tanks influence:

• 2022 Mini Budget: Largely influenced/formed by neoliberal IEA (scrapping planned rise in corporation tax)

  • Truss senior special advisor - Ruth Porter a former communications director at IEA

• Centre for Social Justice: researches/focuses on policy for welfare issues founded by MP Ian Duncan Smith: proposed by Universal Credit system that was introduced by Coalition gov in 2013

  • universal credit: single welfare benefit that combined 6 previous ones ie. housing benefit

• Policy Exchange (right leaning)- no of suggestions been taken up by gov ie. free schools and police and crime commissioners.

  • 2019 report on free speech in universities- helped influence gov legislation I(gov included the higher education (freedom of speech bill) in 2021 Queen’s speech

both close connection with gov:

How are think tanks good for pluralism?

• 2020: National Institute of Economic and Social Research scrutinised gov budget, raising questions of viability of its growth targets reported in media

competing views publicised by think tanks- encourage pluralist society

Why are corporations influential?

• Importance in UK economy and bring mass employment - gives them insider influence (strategically important place in economy)

• Gov may seek advise on policies and how it will impact them

• Can put pressure on gov to change legislation to favour them

  • due to importance - can threaten relocation to get favourable terms (capital flight)

Examples of Corporations influence?

• Nissan 2016 - threatened to leave UK after EU referendum- built its new models at its plant in Washington but UK gov under May- have them deal of financial assistance to stay in Sunderland

• Social media companies influence: successful resistance to calls for companies to pay more UK taxes on profits

  • 2021: Google payed £50M in corporation tax despite revenues of £1.8Bn

When do corporations not have influence?

Not always listened to by gov

• CBI and Brexit (expand)

• don’t align with gov values/ideas

Advantages and disadvantages of think tanks?

Advantages:

• carry out detailed research political parties may not have time to/area of expertise

• range: across political spectrum so pluralism: putting forward range of policy alternatives

• uphold democracy - Institute for fiscal studies revealed the ‘fiscal hole’ after the 2022 mini budget- important as the gov wouldn’t publish the products by the OBR

Disadvantages:

• funding lacks transparency:

  • undermine objectivity of policies

  • add example

• undemocratic - special advantage with gov esp if they share ideology (unfair advantage in influencing policy)

• unaccoutable

Lizz Truss gov and significant of think tanks:

• IEA

• Adam Smith Institute lobbied to end ban on fracking- Truss pledged to end ban as part of her energy plan in 2022

  • Truss Political Secretary Sophie Jarvis was head of government affairs at the Adam Smith Institution

• Centre for Policy Studies proposed scrapping green levies from energy bills - something Truss proposed

How do corporations gain influence over the government (not economic point)

• Use in house lobbying- that doesn’t have to be registered under 2014 lobbying act

  • Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Act 2014

• Make political donations: extend influence

  • 2023: Supreme 8 Limited gave £350,000 to the Conservative Party

  • 2023: Ecotricity Group Limited gave £500,000 to Labour Party (seen as being gov soon)

• 2024 election year: Donations by corporations increased

  • 36.3% increase in amount given to parties by corporations from 2022-2023

2024 example of corporation supporting a political campaign:

• 2024 Gov removed VAT on period pants- long running campaign that they were unfair and was supported by Marks and Spencers- signed letter to treasury urging tax to be removed

Revolving door with politicians and corporations:

• David Cameron: After resignation, Cameron took on lobbying/advisor role for company Greensill Capital - payed over 1M a year for expertise

  • 2020: lobbied Sunak to change rules and allow greensill access to money through covid corporate financing facility (unsuccessful - counter point) (ALSO USE FOR LOBBYING)

  • FOR: 2019 arranged meeting between Hancock and company (secretary of state for health and social care)- Some NHS trusts went on to use Greensill capital services

• Nick Clegg: After losing Sheffield Hallam seat in 2019- became senior executive at Meta

Justification for the role of Corporations:

• Corporations- significant employers and tax payers- essential voice is loudly heard/expertise when advising gov

• BUT: disproportionate influence

What is lobbying?

• Professionals who are paid, seeking access and influence over MP’s, lords etc

• Purpose to gain influence on behalf of a client and prevent/promote legislation in their interests

What did the government introduce in 2014:

• Lobbying Act: legal requirement for anyone lobbying on behalf of a third party to register their activities

• In house unaffected

• 2015 Transparency International - estimated only around 4% lobbyists actually on the register

What are the concerns with lobbying?

• Revolving door: many lobbying firms hire politicians to lobby on their important contacts

Examples for lobbying:

• Annual spending on lobbying in the UK- estimated to be around £2B

• NFU (insider - links to DEFRA)- 2023 NFU successfully lobbied to ensure rural households receive additional energy help when they were offgrild

• 2022: NFU successfully bodied to have small woodlands qualify as Ecological Focus Areas in Scotland

Examples of lobbying scandals:

• David Cameron- became paid advisor to Greensill Capital in 2018 (recieved salaries and had shares) - 2020 attempted to persuad gov to allow them to join the corporate Covid Financing Facility (CCFF) - Cameron contacted Sunak - former PM extrodinary influence for capital gain

• Owen Patterson 2021- left parliament after lobbying scandal (expand)

• Bernie Ecclestone

Advantages of lobbyists:

• Help represent a range of interests- can also give voice to underrepresented groups (but mainly wealthy)

Dis:

• Disproportionate- helps already powerful interests (can afford to hire lobbyists)= dominate agenda and push smaller parties out (in house)

Examples of MP’s receiving hospitality:

• 2023: Gary Sambrook received £598 from intercity technology limited to attend England v new Zealand T20 match in 2023

• Matt Hancock- received £11,638 from Hawksmoor Technology Advisors

How can lobbying improve democracy?

• Impact on democracy: represent charities/interest groups looking to do good (and corporations)- play a role in pluralism (act as a channel that enable ideas and research to be presented by decision makers) - democracy as without lobbyists gov making decisions based on less info/without all interested groups presenting view (gov neutral and way up options)

• Adv: provide important function in politics- conveying the views of stakeholders to policy makers- generating better legislation as a result

Think tanks and unknown donors: