Abstract
Policy Exchange (PX) is a right-of-centre think tank founded in 2002 by Conservative modernisers who believed their party needed to move beyond a strict adherence to Thatcherite ideas. Parallel to the rise of David Cameron, PX became ever more politically connected, while producing policy proposals on areas hitherto relatively neglected by the centre-right (e.g., education, social policy, healthcare). Indeed, the ideas behind the ‘Big Society’ platform were first developed under PX’s aegis. However, the moment of their political ascendancy coincided with the 2008 crisis, after which they became strong supporters of the austerity agenda—if positioning themselves as ‘reasonable’ rather than ideological advocates. As a result, PX expanded its output dramatically on fiscal and financial policy, moving much of their thinking towards the economic right. In the process, PX came to be seen as one of the most politically central British think tank, the crucible of centre-right thinking, and the ‘policy shop’ of the Cameron premiership.
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- 1.
See UK Companies House, Reg. No. 04297905, accessed 1 March 2016, https://beta.companieshouse.gov.uk/company/04297905/filing-history?page=5.
- 2.
Dean Godson joined PX in 2005, and was previously Chief Leader Writer of The Daily Telegraph , Associate Editor of The Spectator , and Contributing Editor for Prospect Magazine.
- 3.
Michael Gove became an MP in 2005 and later Education, Justice, and Environment Secretary.
- 4.
Charles Moore is former editor of The Daily Telegraph , The Sunday Telegraph, and The Spectator . After leaving his post at PX, Moore wrote the authorised biography of Margaret Thatcher.
- 5.
Daniel Finkelstein is former Director of the think tank Social Market Foundation and became Member of the House of Lords in 2013.
- 6.
Daniel Frum was a speechwriter for US President George W. Bush and Chairman of American Friends of PX.
- 7.
As reported in Chapter V, Jesse Norman is also member of NIESR’s Board of Trustees.
- 8.
James O’Shaughnessy co-authored the Coalition’s programme, was “Director of the Conservative Research Department from 2007 and 2010, and helped write the Conservative Party’s general election manifesto,” accessed 3 March 2016. http://www.policyexchange.org.uk/people/alumni/item/james-o-shaughnessy?category_id=45.
- 9.
Natalie Evans is also former Head of Operations at the New Schools Network, a Charity supporting new independent schools.
- 10.
Between 2012 and 2015, PX appears on these rankings in the following positions: World think tanks (non-US): 95, 95, 95; 113; World think tanks (US and non-US): 116, 118, n/a; n/a; Think tanks in Western Europe: 70, 71, 75, 73 (McGann, 2013–2016).
- 11.
Accessed 20 March 2016, https://web.archive.org/web/20121011031859/http://policyexchange.org.uk/about-us.
- 12.
Anthony Browne, Neil O’Brien, and Nicholas Boles were all members of Localis’ board (data retrieved from Companies House, Localis Research Ltd. Reg. No. 04287449), accessed 30 March 2016, https://beta.companieshouse.gov.uk/company/04287449/filing-history.
- 13.
Now ‘Policy Exchange Events.’ See UK Companies House, Reg. No. 06005752, accessed 1 March 2016, https://beta.companieshouse.gov.uk/company/06005752/filing-history.
- 14.
Rachel Whetstone is the former Head of Communications and Public Policy at Google, was political secretary to former Conservative leader Michael Howard, and is married to Steve Hilton, David Cameron’s speechwriter and visiting scholar at PX.
- 15.
Camilla Cavendish headed the 2013 NHS ‘Cavendish Review’ and later became Head of the Prime Minister’s Office Policy Unit.
- 16.
At the time of writing, Richard Ehrman was Consultant Director at the think tank Politeia.
- 17.
Patience Wheatcroft is Conservative life peer and former editor of The Wall Street Journal Europe.
- 18.
Virginia Fraser writes for Homes & Gardens magazine and has worked as an editor for The Sunday Telegraph and The Spectator .
- 19.
Alice Thompson is Associate Editor at The Times .
- 20.
Theodore Agnew is a Conservative donor and later non-executive board member of the Department of Education and Head of Academies. See (accessed 1 March 2016) https://www.gov.uk/government/people/theodore-agnew#previous-roles.
- 21.
Richard Briance is Partner of PMB Capital.
- 22.
Simon Brocklebank-Fowler is the founder of Cubitt Consulting.
- 23.
David Meller is Chair of the Meller Group and founder of the Meller Education Trust.
- 24.
George Robinson is Director of the hedge fund Sloane Robinson.
- 25.
Robert Rosenkranz is CEO of Delphi Financial Group and member of the Yale University Council, the Council of Foreign Relations, and the board of the Manhattan Institute.
- 26.
Andrew Sells is Chairman of the non-departmental public body Natural England, accessed 25 March 2016, https://www.gov.uk/government/people/andrew-sells.
- 27.
Tim Steel is Chairman of the private equity firm Committed Capital.
- 28.
Baron Simon Wolfson is the CEO of the clothing retailer Next and a Conservative life peer.
- 29.
“[W]e’re known […] as a good space for discussion […]. So if a minister or a shadow minister […] wants to make a policy announcement, we will almost certainly try to help them” (PX interview).
- 30.
Indeed, much publicity to PX comes in the form of speeches by senior figures at their premises, and one finds that copyright-free images of speakers with the PX logo as background are available around the web—e.g., Education Ministers Michael Gove and Nicky Morgan’s Wikipedia profiles. See (accessed 20 March 2016) https://en.wikipedia.org/wiki/Michael_Gove and https://en.wikipedia.org/wiki/Nicky_Morgan.
- 31.
Accessed 20 March 2016, http://whofundsyou.org.
- 32.
“So the funding structure is roughly the corporate sponsors, […] contribute to an annual membership fee like a forum, a business forum. So they underwrite a lot of the operational costs if you will. And then there’s events which are paid for, it could be anyone, mostly corporates, charities sometimes. And then we fund individual pieces of research. Sometimes that’s through foundations like Joseph Rowntree for example [and] there are very rich donors who like what we do and will contribute” (PX interview).
- 33.
Accessed 30 March 2016, http://www.lawfamilycharitablefoundation.org.
- 34.
Accessed 21 February 2016, http://www.petercruddasfoundation.org.uk/docs/Annual-Report-and-Financial-Statements-year-ended-31-3-08.pdf.
- 35.
Accessed 21 February 2016, http://www.petercruddasfoundation.org.uk/docs/Annual-Report-and-Financial-Statements-year-ended-31-3-09.pdf.
- 36.
Accessed 21 February 2016, http://www.petercruddasfoundation.org.uk/docs/Annual-Report-and-Financial-Statements-year-ended-31-3-10.pdf.
- 37.
“We had problems funding certain things. But we never […] really had a huge amount of money shortfall. So we were able to be very independent for that reason” (PX interview).
- 38.
Accessed 20 March 2016, https://web.archive.org/web/20121011031859/http://policyexchange.org.uk/about-us.
- 39.
See 11:50 mark, accessed 7 March 2016, https://www.youtube.com/watch?v=RAASzMcKZ_w.
- 40.
See former PX Director Neil O’Brien in the Labour conference fringe event ‘Reconsidering Blairism,’ accessed 7 March 2016, https://www.youtube.com/watch?v=xVVAX-RPEvY.
- 41.
The perceived distance between David Cameron and new-right think tanks like IEA and CPS was noted at the time by right-of-centre commentators (Daily Telegraph 2009).
- 42.
This need not apply to PX events, which cover more topics than its reports. On September 30th 2008, PX hosted the panel ‘Britain after the Credit Crunch’ with Philip Hammond MP, then Shadow Chief Secretary to the Treasury, Businesswoman Kim Wiser, and the Business Editor of the Daily Express Tracey Boles, accessed 10 March 2016, http://www.policyexchange.org.uk/events/pastevents/item/britain-after-the-credit-crunch?category_id=37.
- 43.
“[PX] was set up to be a centre-right conservative-minded think tank that does not spend its time talking about tax, fiscal policy, or Europe […] There was space in the market for […] a centre-right think tank that talks about other kinds of things. So in the early years of Policy Exchange they […] focused on things like housing policy, social policy, environmental policy, things of that sort. Now along came the financial crisis, 2007 through 2008, and that wasn’t going to work anymore” (PX interview).
- 44.
“[PX’s rise in economics work] is almost definitely because of the economic crisis. [Before] we didn’t feel there was a need for an economics tax and spend kind of unit in PX because the other think tanks did that. But once the economic crisis hit that, […] was something we had to respond to […]. So [PX’s economic policy unit] went from one person to four or five” (PX interview).
- 45.
Incidentally, Miles Saltiel has also written for the ASI.
- 46.
Oliver Hartwich is a member of the Mont-Pèlerin Society and has been employed in several right-leaning think tanks in Australia and New Zealand. According to his own account, the idea of an independent forecaster modelled after the BoE’s MPC —which later became the OBR—came in meetings of PX staff with then Shadow Chancellor George Osborne (Business Spectator 2010).
- 47.
While Saltiel and Thomas (02/2009: 10) claimed banks’ bailout “was necessary for the economy – and society – to function,” Lilico (2009: 46) pondered in a CPS report: “how bad would the recession have been without the Government’s interventions? Could it have been worse than creating a 5%–6% add-on to the recession, spending hundreds of billions of pounds in the process, destroying private capitalism, and forcing the bailing out of other types of company and the enactment of wealth taxes. Was this a better strategy than using the money to cut our taxes or provide other sorts of comfort?”
- 48.
“There is a shift from the general […] controlling spending, government deficits, […] to more specific [areas]. And actually later on […] we started looking at ‘well we’ve done departmental spending, that’s already been kind of laid out […] what is left? And the answer was public sector pay and welfare reform which is obviously a huge chunk which we hadn’t done a great deal on, and that became more important in 2012, 2013” (PX interview).
- 49.
However, one should not exaggerate the organisation’s internal coherence, as public disagreements with former members have occurred. In 2012, Alex Morton, then PX Head of Housing, disagreed publicly with Andrew Lilico’s assertion that there is no housing shortage in the south of England (Morton 12/2012).
- 50.
- 51.
By way of illustration, senior politicians who have spoken at PX events between 2007 and 2013 include then Home Secretary and future Prime Minister Theresa May, as well as then Immigration Minister Damian Green, on immigration reform (Gov.uk 2010a, 2012a); Nick Herbert on criminal justice reform (Gov.uk 2010b); Michael Gove on pension reform (Gov.uk 2011); Lord Freud, Minister for Welfare Reform , on employment outcomes (Gov.uk 2013a); then Exchequer Secretary to the Treasury David Gauke MP on tax avoidance (Gov.uk 2012b); Michael Fallon on postal service reform (Gov.uk 2013b); David Lidington MP on the European single market (Gov.uk 2010c); Francis Maude on civil service reform (Gov.uk 2013c); David Willetts on growth policies and high tech industrial strategy (Gov.uk 2012c) Gregg Clark on the ‘Big Society’ (Gov.uk 2010d); and General Richards on national security strategy (Gov.uk 2010e).
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González Hernando, M. (2019). Policy Exchange: The Pros and Cons of Political Centrality. In: British Think Tanks After the 2008 Global Financial Crisis. Palgrave Studies in Science, Knowledge and Policy. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-20370-2_6
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Print ISBN: 978-3-030-20369-6
Online ISBN: 978-3-030-20370-2
eBook Packages: Social SciencesSocial Sciences (R0)