Saturday, August 05, 2023
US money raises question as to who runs the UK
Unelected thinktanks have a disproportionate influence on government, especially this Tory government, so it is important for there to be complete transparency as to how they are funded and who they speak to. Alas neither of these is true.
That is apparent from this worrying article in the Guardian, which reports that some of Britain’s most influential thinktanks received more than $1m (£787,000) from donations in the US in 2021.
The paper says that the recipients of this money include the Institute of Economic Affairs (IEA), regarded as an inspiration for policies adopted by the Liz Truss government, and Policy Exchange – a conservative thinktank used as a platform by ministers to trail new measures and which recently incubated hardline immigration plans:
Steve Goodrich, head of research and investigations at Transparency International UK, said: “Ensuring transparency around who funds our politics is essential for public confidence in how our democracy works.
“It is particularly concerning that those organisations with the most opaque funding arrangements are seemingly those getting the biggest hearing from ministers. We would urge any thinktank seeking to influence policy development to declare their funding sources and be transparent about their governance.”
Policy Exchange, where Truss was head of economic and social policy before entering politics, received almost $100,000 from a foundation controlled by Leonard Blavatnik, who has joint US-UK citizenship and was listed this year by the Sunday Times Rich list as Britain’s third-richest man.
The organisation’s American arm received $34,786 in 2021 from the Blavatnik Family Foundation 2020 – which is run by Blavatnik’s brother Alex – “to support and advance the program of policy exchange between the UK and US”.
It also took more than $270,000 from the family foundation of Yan Huo, a hedge fund magnate with US citizenship who has donated more than £1m to the Tories, including £200,000 shortly before the 2019 general election.
The IEA’s US wing, American Friends of the Institute of Economic Affairs (AFIEA), has accepted $118,000 since 2020 from the Sarah Scaife Foundation, a private foundation set up by the billionaire libertarian heir to an oil and banking dynasty.
The IEA is believed to have inspired many of the free-market policies pursued by Truss and the then-chancellor, Kwasi Kwarteng. Some of her staff worked at the IEA, and she founded its political wing, Freer. Truss spoke at more of its events than “any other politician over the past 12 years” according to the head of the IEA.
The figures on US funding were identified by the investigative journalist Peter Geoghegan, who analysed recently published US tax documents.
Tom Brake, the director of Unlock Democracy, a pressure group campaigning for greater transparency from thinktanks, said the figures “underlined the urgent need to break the secrecy that surrounds the funding of many of the UK’s thinktanks”.
He added: “Some thinktanks exert huge influence over government. For that reason, we need to understand who stands behind them financially and what their agenda might be. They aren’t innocent bystanders.”
Policy Exchange and the IEA have long faced questions about their refusal to name their donors. They argue that they respect their backers’ right to privacy unless the backers wish otherwise. Critics say the lack of transparency allows unseen donors to influence political debate.
The first question that should be asked of any organisation proposing policy change should be 'who funds you?' followed by 'what is their interest in your research?' and 'what contact do you have with government ministers?'
That is apparent from this worrying article in the Guardian, which reports that some of Britain’s most influential thinktanks received more than $1m (£787,000) from donations in the US in 2021.
The paper says that the recipients of this money include the Institute of Economic Affairs (IEA), regarded as an inspiration for policies adopted by the Liz Truss government, and Policy Exchange – a conservative thinktank used as a platform by ministers to trail new measures and which recently incubated hardline immigration plans:
Steve Goodrich, head of research and investigations at Transparency International UK, said: “Ensuring transparency around who funds our politics is essential for public confidence in how our democracy works.
“It is particularly concerning that those organisations with the most opaque funding arrangements are seemingly those getting the biggest hearing from ministers. We would urge any thinktank seeking to influence policy development to declare their funding sources and be transparent about their governance.”
Policy Exchange, where Truss was head of economic and social policy before entering politics, received almost $100,000 from a foundation controlled by Leonard Blavatnik, who has joint US-UK citizenship and was listed this year by the Sunday Times Rich list as Britain’s third-richest man.
The organisation’s American arm received $34,786 in 2021 from the Blavatnik Family Foundation 2020 – which is run by Blavatnik’s brother Alex – “to support and advance the program of policy exchange between the UK and US”.
It also took more than $270,000 from the family foundation of Yan Huo, a hedge fund magnate with US citizenship who has donated more than £1m to the Tories, including £200,000 shortly before the 2019 general election.
The IEA’s US wing, American Friends of the Institute of Economic Affairs (AFIEA), has accepted $118,000 since 2020 from the Sarah Scaife Foundation, a private foundation set up by the billionaire libertarian heir to an oil and banking dynasty.
The IEA is believed to have inspired many of the free-market policies pursued by Truss and the then-chancellor, Kwasi Kwarteng. Some of her staff worked at the IEA, and she founded its political wing, Freer. Truss spoke at more of its events than “any other politician over the past 12 years” according to the head of the IEA.
The figures on US funding were identified by the investigative journalist Peter Geoghegan, who analysed recently published US tax documents.
Tom Brake, the director of Unlock Democracy, a pressure group campaigning for greater transparency from thinktanks, said the figures “underlined the urgent need to break the secrecy that surrounds the funding of many of the UK’s thinktanks”.
He added: “Some thinktanks exert huge influence over government. For that reason, we need to understand who stands behind them financially and what their agenda might be. They aren’t innocent bystanders.”
Policy Exchange and the IEA have long faced questions about their refusal to name their donors. They argue that they respect their backers’ right to privacy unless the backers wish otherwise. Critics say the lack of transparency allows unseen donors to influence political debate.
The first question that should be asked of any organisation proposing policy change should be 'who funds you?' followed by 'what is their interest in your research?' and 'what contact do you have with government ministers?'
It is bad enough having government undermining our democratic rights through legislation, without also discovering that any government's policy agenda is being driven by overseas money. We need more transparency in public life, period.
