MPs launch complaint against Institute of Economic Affairs

Layla Moran MP from the Liberal Democrats called for the commission to act with “utmost urgency”.

“One charity promoting extremist views and acting outside the rules is a blight on the whole sector,” Moran said.

Along with Moran, Alyn Smith MP from the Scottish National Party, Clive Lewis MP from the Labour Party and Siân Berry AM – parliamentary candidate from the Green Party have joined a former member of the commission’s own board, Dr. Andrew Purkis OBE, to argue that the IEA falls foul of regulations around political campaigning, educational research and inappropriate links with openly political offshoot organisations.

Despite clear guidance from the commission that a charity’s purpose should not be political, the IEA was widely seen as the inspiration for Liz Truss and Kwasi Kwarteng’s mini budget. According to political commentator Tim Montgomerie, the disastrous September 2022 mini budget was a “massive moment for the IEA” who had been advocating the policies for years.

Charity rules also state research must avoid presenting “biased and selective information in support of a preconceived point of view”. The IEA promotes extreme views such as there being “no sensible scientific objection” to increasing drilling in the North Sea, that healthcare in the UK should be insurance-based and that regulation on disposable vapes should be removed. It has so far refused to admit who pays for its work, but investigations have revealed some of its funding comes from the gas, oil and tobacco industries.

Commission guidance also states that charities must not “fund or support non-charitable purposes”, yet the IEA backs offshoots such as such as the IEA Forum and 1828 that aim to promote a “free market message”.

It’s a scandal that an organisation which pushes an extreme political agenda and seems so plainly in breach of charity regulations should continue to benefit from the tax advantages charitable status affords.

The Charity Commission, whose job it is to regulate charities and ensure that they comply with charity law, has received repeated complaints about the IEA over the last decade. But so far it has failed to act.

 We’ll keep the pressure on the Charity Commission until it steps up to do its job.

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