The Charity Commission has no regulatory concerns about the Institute of Economic Affairs. Really?
(A lightly edited version of this blog appeared in Civil Society News on 3 April 2024)
The Charity Commission received a complaint supported by The Good Law Project (GLP), in the names of three MPs and a parliamentary candidate from four political parties, and me, about the Institute of Economic Affairs (IEA), whose charitable purpose is the advancement of education. The complaint was closely argued and concluded that the IEA had a partly political purpose (which no charity may have), did not abide by the Charity Commission’s guidance about the nature of charitable education, and did not ensure sufficient distance between the charity and its non-charitable connected bodies.
With lightning speed, the Charity Commission replied to say that they had no regulatory concerns and were not going to raise any of these issues with the IEA.
This followed a speech by the Commission’s Chair to the effect that political think tanks are a good thing for our democracy, and that therefore the Commission would only in rare instances consider intervening because of some politically inspired complaint. Here are the issues at stake.
Shortcut guide to the arguments
- Is the IEA partly political in its purpose?
The Commission’s line is that the IEA’s philosophy in favouring freedom and free markets is a legitimate broad value base for research and educational publications, just as (say) the Institute for Fiscal Studies has a broad value base in more conventional or middle-of-the-road economics. The counter-argument is that the IEA has always explicitly aimed to help shrink the state in all possible dimensions as a core part of its endeavour; and it is actually part of its founding purpose. That is political, as defined by the Charity Commission, and according to charity law, a charity must have an exclusively charitable and non-political purpose.
2. Does the IEA advance education as defined by charity law and the Commission?
The Charity Commission’s guidance is clear that charitable education must not be promoting a controversial and pre-determined point of view. It must present different sides of an issue as appropriate in a reasonably neutral and balanced manner, that lets the reader draw his or her own conclusion. You may feel that doesn’t sound like the IEA?
Trying to justify its continuing charitable status, the Commission has argued, on the one hand, that the IEA’s free market ideology is “relatively uncontroversial”. (Hands up all those who agree?) On the other hand, the Commission has also argued that because one think tank may put forward a case from one point of view, and another will put forward the case from a different point of view, it’s OK for a particular charity not to be reasonably balanced and neutral etc after all. (Hands up all lawyers who think that’s a tenable position?) With such obviously contestable arguments, the Commission cannot reasonably regard the matter as already discussed and closed.
The counter arguments are obvious. Since the IEA is consistently one-sided and selective in its militant shrink-the-state advocacy, which is a highly controversial and pre-determined position, not least after the Liz Truss debacle, it should not qualify as advancing charitable education.
3. Are the charitable and non-charitable arms of IEA too closely intertwined?
The Good Law Practice also argues in detail in the complaint that the non-charitable connected bodies allied with the IEA are often run by the same cast of characters, so that, as at the end of Animal Farm, the pigs looked at the men and the men at the pigs and nobody could tell the difference any more. I do not know why the Commission thinks this doesn’t require any courteous answer or investigation.
Victory for Free Speech?
The IEA have hailed the Commission’s decision that there is nothing here to investigate as a victory for free speech. In fact, it has nothing to do with free speech, because the issue is not whether the IEA should exist and say whatever it likes. It is whether it should be a charity and, if so, abide by the Commission’s guidance. After all, there are plenty of non-charitable right-of-centre think tanks like the Centre for Policy Studies, the Adam Smith Institute, and the Taxpayers’ Alliance, which are not so different from the IEA and make their contribution in a free society. Should they be charities, on the grounds that they too are a good thing? And there are plenty of think tanks that really do advance education as defined by the Commission. They are not a homogenous group, and it is a principle of good regulation that each one should be treated on its individual merits, with its own objectives, history and track record – not just lumped together with all the others.
Fair and consistent regulation
Summarily dismissing all these concerns is not in my view going to do a great deal for the reputation of the Commission for fair, consistent and balanced regulation without fear or favour. The concerns and arguments are not going to go away.