Policy Exchange: Past, present and future

The group once called "Cameron's favourite think-tank" celebrates its tenth anniversary today, and i

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 still looking to the future. 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 of pounds 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.

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Theresa May gambles that the EU will blink first

In her Brexit speech, the Prime Minister raised the stakes by declaring that "no deal for Britain is better than a bad deal for Britain". 

It was at Lancaster House in 1988 that Margaret Thatcher delivered a speech heralding British membership of the single market. Twenty eight years later, at the same venue, Theresa May confirmed the UK’s retreat.

As had been clear ever since her Brexit speech in October, May recognises that her primary objective of controlling immigration is incompatible with continued membership. Inside the single market, she noted, the UK would still have to accept free movement and the rulings of the European Court of Justice (ECJ). “It would to all intents and purposes mean not leaving the EU at all,” May surmised.

The Prime Minister also confirmed, as anticipated, that the UK would no longer remain a full member of the Customs Union. “We want to get out into the wider world, to trade and do business all around the globe,” May declared.

But she also recognises that a substantial proportion of this will continue to be with Europe (the destination for half of current UK exports). Her ambition, she declared, was “a new, comprehensive, bold and ambitious Free Trade Agreement”. May added that she wanted either “a completely new customs agreement” or associate membership of the Customs Union.

Though the Prime Minister has long ruled out free movement and the acceptance of ECJ jurisdiction, she has not pledged to end budget contributions. But in her speech she diminished this potential concession, warning that the days when the UK provided “vast” amounts were over.

Having signalled what she wanted to take from the EU, what did May have to give? She struck a notably more conciliatory tone, emphasising that it was “overwhelmingly and compellingly in Britain’s national interest that the EU should succeed”. The day after Donald Trump gleefully predicted the institution’s demise, her words were in marked contrast to those of the president-elect.

In an age of Isis and Russian revanchism, May also emphasised the UK’s “unique intelligence capabilities” which would help to keep “people in Europe safe from terrorism”. She added: “At a time when there is growing concern about European security, Britain’s servicemen and women, based in European countries including Estonia, Poland and Romania, will continue to do their duty. We are leaving the European Union, but we are not leaving Europe.”

The EU’s defining political objective is to ensure that others do not follow the UK out of the club. The rise of nationalists such as Marine Le Pen, Alternative für Deutschland and the Dutch Partij voor de Vrijheid (Party for Freedom) has made Europe less, rather than more, amenable to British demands. In this hazardous climate, the UK cannot be seen to enjoy a cost-free Brexit.

May’s wager is that the price will not be excessive. She warned that a “punitive deal that punishes Britain” would be “an act of calamitous self-harm”. But as Greece can testify, economic self-interest does not always trump politics.

Unlike David Cameron, however, who merely stated that he “ruled nothing out” during his EU renegotiation, May signalled that she was prepared to walk away. “No deal for Britain is better than a bad deal for Britain,” she declared. Such an outcome would prove economically calamitous for the UK, forcing it to accept punitively high tariffs. But in this face-off, May’s gamble is that Brussels will blink first.

George Eaton is political editor of the New Statesman.