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Labour demands 'full and proper' probe into free market think tank over ministerial access claims

3 min read

Labour has urged the Charity Commission to launch an investigation into the Institute for Economic Affairs, after its chief was filmed talking about the think tank's access to government ministers.


Shadow Cabinet Office minister Jon Trickett has written to the watchdog urging it to investigate the free-market group and accusing the IEA of using "underhand ways to influence political decisions".

IEA director Mark Littlewood was filmed by campaign group Greenpeace highlighting the organisation's influence with top ministers.

He told an undercover reporter - posing as an American agribusiness investor - that a top IEA figure was "writing [Michael] Gove and [Boris] Johnson’s script" on Brexit, and promised that becoming a donor would allow his client to attend "intimate" private dinners where they could "get to know cabinet ministers on first name terms".

"I have absolutely no problem with people who have business interests, us facilitating those," he said in comments reported by the Guardian.

The think tank has already pushed back at the report, saying it made "no apology" for seeking donors to help fund its "independent research efforts".

But Mr Trickett said the story had raised questions about the IEA's status as an educational charity, a status which entitles it to tax breaks under UK law.

"The system is clearly not working if a registered charity, supposedly prohibited in law from having a political purpose, uses foreign money to lobby politicians to support its extreme political agenda," the Labour frontbencher said.

"It is deeply worrying that senior Conservative politicians appear willing to engage in unaccountable backroom discussions on issues that are critical to the British people."

'FULL AND PROPER'

The Shadow Cabinet Office minister has written to the head of the Charity Commission, Baroness Stowell, saying there was "now substantial evidence in the public domain that the Institute of Economic Affairs (IEA) may have breached charity law".

His letter alleges that the IEA has "engaged in extensive lobbying and controversial political campaign activity in pursuit of specific policy goals", saying such a move goes "well beyond" its scope as an education charity.

And Mr Trickett claims that the think tank has actively "approached donors who stand to benefit from its research to request funding", despite previous reassurances that it had given to the watchdog that it would only take "blind" donations.

He adds: "It is yet to be determined beyond doubt that all these accusations are true in their entirety, but the evidence so far presented is worryingly convincing."

The party is calling on the Charity Commission to launch a "full and proper investigation" into the organisation.

LITTLEWOOD: NO APOLOGY FOR OUR WORK

IEA chief Mark Littlewood has pushed back against the Greenpeace recording, however, accusing its reporters of taking words "out of context".

In a statement, the think tank's director general said: "Our research and ideas precede donations and we make no apology for seeking to raise funds from individuals, foundations and corporations to support our independent research efforts.

"Donors are unable to influence the results and conclusions of our research, which are controlled entirely by our research team, but we greatly welcome their funding, without which we would be unable operate."

Mr Littlewood said the IEA made "no apologies for seeking to inform and educate politicians at the highest levels of government", including on Brexit.

“It should be noted that the comments referred to in this account are selective and taken out of context of a wider conversation," he added.

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