Ten years of Policy Exchange

Free Schools, elected police chiefs, welfare reform - this is the legacy of my think tank.

Policy Exchange was founded ten years ago. We believed - and still do - that there is a role for the State, albeit a much smaller and more efficient one, to help improve peoples' lives. We also felt that people should have more of a direct say on the decisions that affect themselves and their families.

Decentralisation was one of our key themes and some of our better known policy recommendations such as directly elected police commissioners and Free Schools stem from this initial premise. The first elections for police and crime commissioners will take place this November. We believe that a police chief who is directly accountable to the people he or she serves will improve not only the standard of policing at a local level but also re-establish trust in the police, something that has diminished recently with the recent phone hacking scandal.

We first put forward policy recommendations for the setting up of Free Schools because we believe that every parent should have access to a good, local school which offers their child the best possible education. Teaching is one of the most important jobs in the country. We want schools, especially in the most deprived areas of the UK, to have the means to attract the best possible teachers. That means challenging dated concepts such as national pay bargaining, which defines how much a teacher should earn based on time spent in the job, rather than ability. Head teachers know how good a teacher is and should be allowed to pay that person accordingly. Likewise if someone is not cut out to be a teacher, then he or she should not simply be moved from one school to the next as is currently the case. We need to reform the education system to attract the brightest and the best to help our children achieve their potential.

The pupil premium - an additional cash payment for the most disadvantaged children - is one idea that some people forget was first floated by Policy Exchange. The Liberal Democrats took the idea forward in their 2010 election manifesto and the policy came into being this year.

Our work on re-establishing the contributory principle in the welfare system has been taken forward by both Labour and Conservative politicians. The universal credit, set to be introduced in 2014, is a stepping stone to making it more worthwhile to work rather than remain on benefits. However, there is a huge amount more to be done to create a fairer welfare system. Recently we have proposed tougher sanctions and conditions on jobseekers who are not doing all they can to find work. At the same time, the government has a responsibility to help jobcentre advisers identify those people who are the least likely to be able to hold down a job due to alcohol or drug problems or a history of mental health problems. These people need the most help and we need to create a system where on day one of someone signing on, a Jobcentre adviser has the information to tailor specific help towards people with particular needs.

While a number of our policy recommendations have found their way into Coalition thinking we are not resting on our laurels. There is a huge challenge facing all political parties - how do you improve public services with no money. We will be publishing a number of reports over the coming months which specifically look to provide answers to this question.

How can you improve the effectiveness of the police when they are faced with 20 per cent budget cuts over the next three years? We think the police could deploy existing, fully trained officers more effectively rather than simply hire more staff - deployment is more important than employment. Private companies and civilian staff can play a role in delivering back office functions, such as manning call centres, freeing up time for officers to carry out more visible policing roles which is what the public is crying out for.

Energy bills are the biggest concern to most people around the country if you look at any of the opinion polls. We think the government could help energy companies reduce electricity bills by revising current climate change policy. We believe that global warming is happening and we believe that the UK has a responsibility to reduce its carbon emissions. But, current energy policy throws billions of pounds of taxpayer's money on the deployment of specific, expensive technologies such as offshore wind. Government should spend more of its budget on financing innovation directly, rather than subsidising the mass roll out of expensive technologies.

Opening up public data is something that this government is committed to doing and we fully support this aim. Only this week we published a report calling on a right to open data. All non personal information held by government departments (maps and postcodes for example) should be made available for free. We think that entrepreneurs and civic activists could use this information to create new "Apple-like" services and products. Free, open data could create billions for the economy.

As you can probably tell, there is plenty of work to do. We need to make sure that the modern day Policy Exchange rises to the challenge.

Neil O'Brien is the Director of Policy Exchange

Neil O'Brien is the director of Policy Exchange.

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The Liberal Democrats are back - and the Tories should be worried

A Liberal revival could do Theresa May real damage in the south.

There's life in the Liberal Democrats yet. The Conservative majority in Witney has been slashed, with lawyer and nominative determinism case study Robert Courts elected, but with a much reduced majority.

It's down in both absolute terms, from 25,155 to 5,702, but it's never wise to worry too much about raw numbers in by-elections. The percentages tell us a lot more, and there's considerable cause for alarm in the Tory camp as far as they are concerned: the Conservative vote down from 60 per cent to 45 per cent.

(On a side note, I wouldn’t read much of anything into the fact that Labour slipped to third. It has never been a happy hunting ground for them and their vote was squeezed less by the Liberal Democrats than you’d perhaps expect.)

And what about those Liberal Democrats, eh? They've surged from fourth place to second, a 23.5 per cent increase in their vote, a 19.3 swing from Conservative to Liberal, the biggest towards that party in two decades.

One thing is clear: the "Liberal Democrat fightback" is not just a hashtag. The party has been doing particularly well in affluent Conservative areas that voted to stay in the European Union. (It's worth noting that one seat that very much fits that profile is Theresa May's own stomping ground of Maidenhead.)

It means that if, as looks likely, Zac Goldsmith triggers a by-election over Heathrow, the Liberal Democrats will consider themselves favourites if they can find a top-tier candidate with decent local connections. They also start with their by-election machine having done very well indeed out of what you might call its “open beta” in Witney. The county council elections next year, too, should be low hanging fruit for 

As Sam Coates reports in the Times this morning, there are growing calls from MPs and ministers that May should go to the country while the going's good, calls that will only be intensified by the going-over that the PM got in Brussels last night. And now, for marginal Conservatives in the south-west especially, it's just just the pressure points of the Brexit talks that should worry them - it's that with every day between now and the next election, the Liberal Democrats may have another day to get their feet back under the table.

This originally appeared in Morning Call, my daily guide to what's going on in politics and the papers. It's free, and you can subscribe here. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.