CNBC: UK Economic Recovery Slows

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Old Teaser

23 April 2010

Published pn CNBC here.

CNBC: Liberal Leader Shines in UK Debate

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Old Teaser

16 April 2010

Published on CNBC here.

Banking reform vital, but levies aren’t the answer

Thursday 8 April 2010

According to a new briefing from the Adam Smith Institute (ASI), proposals to introduce a new ‘bank levy’ would do little to correct the problems in the banking sector, and act as a distraction from other, more pressing reforms.

The briefing also expresses skepticism that governments would ring-fence the proceeds of such a levy for future crises, suggesting that they would soon become just another tax to finance current expenditure.

Indeed, it has already been reported that Alistair Darling favours national discretion to use the proceeds of a proposed EU-wide levy as the government sees fit, rather than reserving funds for the future.

According to Miles Saltiel, the author of the ASI’s briefing and a City financial expert, imposing such a levy is also likely to prevent banks from rebuilding their reserves – a key economic priority, in his opinion – as well as holding up lending.

Saltiel, who is a senior fellow of the Institute, also dismisses the ill-thought out populism behind ideas such as the ‘Tobin tax’, punitive regulation of hedge funds, and swingeing tax increases on bankers.

Instead he argues that policymakers should focus on six key issues:

(1) The government should abolish future expectations of “too big to fail” and encourage competition by breaking up the nationalized banks. The Williams & Glynn Bank, ABN-AMBRO and NatWest should all be filleted out of RBS, while HBOS and TBS should be split out of Lloyds.

(2) The government should also ensure that failed banks can be run down in an orderly way, by requiring so-called ‘living wills’.

(3) The UK should campaign for derivative contracts to be moved onto regulated exchanges, rather than being traded over-the-counter. As well as reducing counter-party risk, this would be good business for the City of London.

(4) The British government should take the lead in advocating tougher international capital and liquidity ratios. They should also press for stricter rules on what counts as capital.

(5) The UK should restrict how much its banks trade on their own account in capital markets by requiring higher capital reserves to be held against such activity.

(6) Legislation should require honest accounting and transparency. Governments – whose off-balance-sheet obligations dwarf those of the private sector – must not be exempt from such rules.

Tom Clougherty, the executive director of the ASI, added:

“Banking reform is one of the most pressing policy challenges facing the UK, but too often our politicians resort to crude populism rather than grappling with the real issues. This needs to change – having a more stable, more competitive banking sector is vital to our future economic well-being.”

ENDS

The Lesson of a Levy on Banks is published by the Adam Smith Institute, 23 Great Smith Street, London SW1P 3BL. A PDF can be downloaded free of charge at www.adamsmith.org/files/a-levy-on-banks.pdf

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The Indpendent: Mischief-makers, misfits and mums: the bloggers who'll keep us plugged in

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Old Teaser

6 April 2010

Written by Michael Bywater

It is oddly comforting, as we approach the most dismal general election in living memory (with a Government that has presided over war, sleaze and economic collapse facing an opposition which has presided over the Bullingdon Club) to know that anybody with an internet connection can read Not Proud of Britain or Slugger O'Toole, Man In A Shed or Never Trust A Hippy, as well as drop in on more established mainstream commentators such as the BBC's political editor Nick Robinson or the Adam Smith Institute.

Published in The Independent here.

Daily Mail: 50p rate is least of our worries for year ahead

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Old Teaser

5 April 2010

Written by Lucy Farndon

When the Adam Smith Institute did its calculations for 2009 it concluded that Tax Freedom Day didn't arrive until June 25 if the deficit was factored in - the worst burden since 1984.

Published in The Daily Mail here.

The Times: The fat lady must learn to be a little thinner

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Old Teaser

2 April 2010

Written by Antonia Senior

A survey by the Department for Culture, Media and Sport found that only 40 per cent of those in the lowest employment bracket attended an arts event in the past year compared with 84 per cent of those in the highest. As a report by the Adam Smith Institute points out, the DCMS has a pretty loose definition of art, including street arts and any “live music performance”.

Published in The Times here.

Honest Politician Of The Year Award

April Fool's Day 2010

A Westminster think-tank has had to scrap its annual Honest Politician Of The Year Award because no qualifying candidates could be found.

The influential Adam Smith Institute, which organises the annual Award, said that it had considered a number of promising nominees, but found insufficient evidence to prove their honesty to the Award jury.

Anthony Steen MP was nominated for his frank view that people were “jealous” of his Balmoral-type second home. However, the jury ruled this untruthful because Balmoral lacks a taxpayer-funded duck house.

Nicholas Winterton MP also reached the shortlist for so truthfully expressing his opinion of standard-class travellers as “a totally different type of people.” But he was disqualified for falsely claiming that his views had been “misrepresented”.

Next year the Adam Smith Institute will give its award instead to the Corrupt Politician Of The Year. “This should give us many more candidates, said Institute director Dr Eamonn Butler. “Indeed, I can think of 646 already.”

“Corrupt politicians are actually the most honest. They have to do what they are bribed to do in order to stay in business. So when bought, they stay bought.”

Another problem for the Awards is that the trophy, depicting a golden hand in a back pocket, and sponsored by Lord Mandelson’s mortgage broker, has been lost. Stephen Byers held it in recognition of his sincere contempt for Railtrack shareholders, but somehow managed to leave it in a cab for hire. Geoff Hoon and Patricia Hewitt have been hired to ask questions, for the usual consultancy fee.

Press enquiries:
G Brown 020 7930 4433

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ConservativeHome: Think Tanks

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Old Teaser

1 April 2010

The Adam Smith Institute was voted the think tank best at developing new talent.

Published on ConservativeHome here.

The Independent: Pandora: You are what you vote: Gillian's political past

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Old Teaser

1 April 2010

Written by Alice Azania-Jarvis

For the first year in its history, the Adam Smith Institute has opted not to award its annual Honest Politician Of The Year Award, explaining that "no qualifying candidates could be found". Surely not! Anthony Steen was, apparently, nominated after claiming that people were "jealous" of his sprawling second home, as was Sir Nicholas Winterton for airing his opinion of standard-class travellers ("a totally different type of people"). Alas, neither man quite made the grade. Not to worry: "Next year we will give an award for Corrupt Politician Of The Year," the event's organisers added. "Corrupt politicians are actually the most honest. When bought, they stay bought." A new law to live by, then.

Published in The Indpendent here.

ConservativeHome: The think tanks demand big cuts from Darling (but don't expect them)

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Old Teaser

24 March 2010

Eamonn Butler at the Adam Smith Institute agrees that spending needs to be cut:

"Public expenditure has increased by a third since 1997 – and has all that bought us anything worthwhile? We need nothing less than a complete re-think of what government exists for, and which parts of it we want to keep and even expand. But there is room for very large savings in departments, quangos and programmes that have simply grown, but which deliver little of value."

Published on ConservativeHome here.