Policy Exchange

About Economics & Social Policy

1. Welfare reform. Our work is based on tackling the structural problems in the UK labour market and setting out plans for the next steps in welfare reform. It focuses on re-establishing responsibility at the heart of the welfare system and recognising that Government must to do more to help those with the greatest needs.

2. Growth and the UK economy. The biggest issue facing governments around the world is how to create conditions for growth. We have consistently argued that growth policy must sidestep political ideology and point-scoring and focus instead on tackling ingrained problems in the UK economy. We have published influential papers looking at: how the planning system is leading to a shortage of homes where people want to live and raising costs for businesses across the UK; how the tax system needs to give greater certainty to business to encourage investment from home and abroad; and how the Coalition's approach to deficit reduction is the minimum that will be required to ensure long-term fiscal credibility. In 2012 we will continue to push for credible plans to tackle the public debt and reduce tax burdens in the long-term. Alongside this we will consider: the role of innovation and, in particular, how to finance innovation with private and public money; how strategic infrastructure and planning reform can unleash growth across the UK; and how to ensure that areas outside of the South East see strong growth.

3. Public sector reform. A key part of reducing public debt while ensuring the delivery of world class public services will be significant public sector reform. Policy debates highlight interesting and promising approaches but, so far, implementation has fallen short of the mark. Our work has consistently highlighted the costs of a large public sector pay and pension premiums and the economic and social consequences of nationally negotiated wages in the public sector. We have also been pushing for government to use more innovative models of public sector provision.

4. Financial policy. The UK needs a competitive and thriving financial industry. It will be a key part of ensuring long-term growth in the UK both in terms of the contribution it makes and the businesses that it provides finance and support to. However, too often today the debate is about the cost of supporting the financial sector and not about what it contributes. It is also clear that reform is needed and that this reform is not confined to the financial sector. In 2012 will be furthering the debate and research across the financial space, including monetary policy, financial regulation, corporate governance, the euro area, the ongoing success of the City and any other area that government affects the financial industry.