I have no problem that the Institute for Fiscal Studies (IFS), takes a centre-left approach to the CSR of the Coalition Government. In fact it is healthy for our democracy for economic and public spending to be debated in this way. But is it right that the IFS takes such a large proportion of its income directly or indirectly from the Taxpayer?
95% of their £5.1 million funding comes from "research contracts", but detailed information for these "research contracts" is not published in their accounts. However, 90% of their Funding Bodies are Government, the public sector, think tanks, or charitable organisations.
IFS major clients include:
- The BBC
- The European Commission
- Her Majesty's Treasury
- Department of Work and Pensions
- Government Equalities Office
- Department for International Development
- Department of Health
- Department of Trade and Industry
- Department for Education
- Department of Finance and Personnel for Northern Ireland
- Inland Revenue
- Food Standards Agency
- International Monetary Fund
- Low Pay Commission
- Office of National Statistics
- Office of the First and Deputy First Minister for Northern Ireland
In 2009, the IFS received a substantial part of their core funding from the Economic and Social Research Council (ESRC), worth up to £6.8 million over five years. ESRC in turn is funded by the Department for Trade and Industry.
Is it fair that the IFS is subsidised by the taxpayer in this way? And in particular, does this public subsidy create an unlevel playing field for other economic think tanks, who don't have access to taxpayer's largesse, and may take a different point of view?