Institute for Fiscal Studies
Encyclopedia
The Institute for Fiscal Studies is an economic
research institute
based in London
, United Kingdom
which specialises in UK taxation
and public policy
. It is politically independent and produces both academic and policy-related findings.
The Institute's aim is to "advance education for the benefit of the public by promoting on a non-political basis the study and discussion of and the exchange and dissemination of information and knowledge concerning national economic and social effects and influences of existing taxes and proposed changes in fiscal systems."
It is located in the Bloomsbury
area of Central London
, close to the British Museum
and University College London (UCL)
.
s - a banker and Conservative Party politician (Will Hopper
), an investment trust manager (Bob Buist), a stockbroker (Nils Taube) and a tax consultant (John Chown) - were appalled at the way in which the 1965 Finance Act
became law. James Callaghan
, the then Chancellor of the Exchequer
, had made a speech announcing his intentions to make far-reaching changes to the tax system, including the introduction of a capital gains tax
and a corporation tax
. Nils Taube commissioned John Chown to prepare a professional analysis of the speech. Despite his warnings about the dire consequences of implementation of the government’s proposals, John Chown stated, “the same half-baked proposals were rehashed in the Budget Speech, and the Finance Bill, when published, read as if the draftsman had simply been given the Callaghan speech and been told to turn it into legislation”.
In 1967 a brainstorming weekend took place at The Bell, Aston Clinton
. In the same year the Charter for Tax Reform was published in The Times and Jeremy Skinner and Halmer Hudson joined the group. Will Hopper has recalled that the idea of a research institute did not take shape until some time later at a dinner which was attended by Bob Buist, John Chown, Nils Taube and himself on 30 July 1968 at the Stella Alpina restaurant, 32 North Audley Street, London, at which a decision was made to found the Institute. The Institute was formally incorporated on 21 May 1969.
As well as research, the Institute had wider, unspoken objectives. The founders did not just want to start an Institute; they wanted to change British fiscal strategy
. In particular, they wanted:
In 1971 a Council of the Institute was formed, with President Sir Richard Powell (civil servant), Vice-Presidents Roy Jenkins (Labour Party) and Selwyn Lloyd (Conservative Party). In the same year an Executive Committee was formed, with Will Hopper as Chairman, Halmer Hudson as Secretary and Buist, Chown, Skinner and Taube as Members. In 1972 the first full-time staff of the Institute were appointed. In 1974 the Institute moved from Bell Yard to Chandos Place. In 1975 the Meade Committee began its enquiries under the leadership of James Meade
. In 1978 the Meade Report was published. In the same year the Institute moved to Castle Lane. In 1979 the Fiscal Studies publication was launched and the Working Paper series began. In 1980 the Armstrong Report was published. In 1982 the Report series was launched and the first Green Budget was issued. In 1984 The Reform of Social Security document was published by the Institute. In 1985 the Institute moved to Tottenham Court Road
. In 1987 the Capital Taxes Group was established. In 1990 the Institute moved to Ridgmount Street. In 1991 the ESRC Centre was inaugurated. In 1994 the Tax Law Review Committee was established.
and spending, pensions and saving, company taxation, consumer behaviour and poverty
and inequality
. Although most of the Institute's research is UK-focused, recent work has also looked at international development policies, for instance at education and nutrition programmes in Colombia
.
The Institute is home to or a partner in the following research centres:
research centre, the Centre for the Microeconomic Analysis of Public Policy (CPP). The CPP is directed by Professor Richard Blundell
and co-directors, Professor Orazio Attanasio
, Professor James Banks, Professor Rachel Griffith, Professor Costas Meghir
. The CPP carries out core analytical research to enable informed microeconomic analysis of major public policy issues, from productivity growth to poverty reduction, and from promoting employment to ensuring sound public finances. Its focus is on the careful modelling of individual, household and firm behaviour, combining cutting-edge empirical analysis with detailed understanding of policy options and implementation. The CPP acts as a national resource for analysis of emerging policy challenges and draws on extensive collaboration with leading researchers in the UK, Europe, North America and the developing world. It has an established record of effective dissemination to and interaction with policymakers, civil society, the business community, academics and the general public - with an aim to seek to broaden and strengthen those links.
Cemmap has organised over 50 training courses and 15 masterclasses and is home to one of the world's leading working papers series in the field of microeconometrics with over 100 titles, many of which are published in leading journals.
Cemmap was founded in 2000 with a grant from the Leverhulme Trust
and since 2007 has been an ESRC research centre.
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
research institute
Research institute
A research institute is an establishment endowed for doing research. Research institutes may specialize in basic research or may be oriented to applied research...
based in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
which specialises in UK taxation
Taxation in the United Kingdom
Taxation in the United Kingdom may involve payments to a minimum of two different levels of government: The central government and local government. Central government revenues come primarily from income tax, National Insurance contributions, value added tax, corporation tax and fuel duty...
and public policy
Public policy
Public policy as government action is generally the principled guide to action taken by the administrative or executive branches of the state with regard to a class of issues in a manner consistent with law and institutional customs. In general, the foundation is the pertinent national and...
. It is politically independent and produces both academic and policy-related findings.
The Institute's aim is to "advance education for the benefit of the public by promoting on a non-political basis the study and discussion of and the exchange and dissemination of information and knowledge concerning national economic and social effects and influences of existing taxes and proposed changes in fiscal systems."
It is located in the Bloomsbury
Bloomsbury
-Places:* Bloomsbury is an area in central London.* Bloomsbury , related local government unit* Bloomsbury, New Jersey, New Jersey, USA* Bloomsbury , listed on the NRHP in Maryland...
area of Central London
Central London
Central London is the innermost part of London, England. There is no official or commonly accepted definition of its area, but its characteristics are understood to include a high density built environment, high land values, an elevated daytime population and a concentration of regionally,...
, close to the British Museum
British Museum
The British Museum is a museum of human history and culture in London. Its collections, which number more than seven million objects, are amongst the largest and most comprehensive in the world and originate from all continents, illustrating and documenting the story of human culture from its...
and University College London (UCL)
University College London
University College London is a public research university located in London, United Kingdom and the oldest and largest constituent college of the federal University of London...
.
History
The Institute came into existence because four financierFinancier
Financier is a term for a person who handles typically large sums of money, usually involving money lending, financing projects, large-scale investing, or large-scale money management. The term is French, and derives from finance or payment...
s - a banker and Conservative Party politician (Will Hopper
William Hopper (politician)
William Joseph Hopper, sometimes known as Will Hopper is a British investment banker who also became involved in the political field. He was one of the founders of the Institute for Fiscal Studies, a non-partisan research institute which offers comment on the economic impact of political proposals...
), an investment trust manager (Bob Buist), a stockbroker (Nils Taube) and a tax consultant (John Chown) - were appalled at the way in which the 1965 Finance Act
Finance Act 1965
The Finance Act 1965 is an Act of the Parliament of the United Kingdom which introduced two major new UK taxes. Corporation tax created a separate system for taxing the income of corporations, where previously they had paid income tax in the same way as private individuals. Capital gains tax is...
became law. James Callaghan
James Callaghan
Leonard James Callaghan, Baron Callaghan of Cardiff, KG, PC , was a British Labour politician, who was Prime Minister of the United Kingdom from 1976 to 1979 and Leader of the Labour Party from 1976 to 1980...
, the then Chancellor of the Exchequer
Chancellor of the Exchequer
The Chancellor of the Exchequer is the title held by the British Cabinet minister who is responsible for all economic and financial matters. Often simply called the Chancellor, the office-holder controls HM Treasury and plays a role akin to the posts of Minister of Finance or Secretary of the...
, had made a speech announcing his intentions to make far-reaching changes to the tax system, including the introduction of a capital gains tax
Capital gains tax
A capital gains tax is a tax charged on capital gains, the profit realized on the sale of a non-inventory asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property...
and a corporation tax
United Kingdom corporation tax
Corporation tax is a tax levied in the United Kingdom on the profits made by companies and on the profits of permanent establishments of non-UK resident companies and associations that trade in the EU. Prior to the tax's enactment on 1 April 1965, companies and individuals paid the same income tax,...
. Nils Taube commissioned John Chown to prepare a professional analysis of the speech. Despite his warnings about the dire consequences of implementation of the government’s proposals, John Chown stated, “the same half-baked proposals were rehashed in the Budget Speech, and the Finance Bill, when published, read as if the draftsman had simply been given the Callaghan speech and been told to turn it into legislation”.
In 1967 a brainstorming weekend took place at The Bell, Aston Clinton
Aston Clinton
Aston Clinton is a village and civil parish close to the main A41 road in Buckinghamshire, England between Tring and Aylesbury. The parish covers and is about east of Aylesbury. The village is at the foot of the chalk escarpment of the Chiltern Hills at the junction of the pre-historic track the...
. In the same year the Charter for Tax Reform was published in The Times and Jeremy Skinner and Halmer Hudson joined the group. Will Hopper has recalled that the idea of a research institute did not take shape until some time later at a dinner which was attended by Bob Buist, John Chown, Nils Taube and himself on 30 July 1968 at the Stella Alpina restaurant, 32 North Audley Street, London, at which a decision was made to found the Institute. The Institute was formally incorporated on 21 May 1969.
As well as research, the Institute had wider, unspoken objectives. The founders did not just want to start an Institute; they wanted to change British fiscal strategy
Fiscal policy
In economics and political science, fiscal policy is the use of government expenditure and revenue collection to influence the economy....
. In particular, they wanted:
- to alter the climate of opinion within which changes to the British tax system were considered;
- to improve the procedures by which changes in the tax system were effected;
- to help create a more rational tax system.
In 1971 a Council of the Institute was formed, with President Sir Richard Powell (civil servant), Vice-Presidents Roy Jenkins (Labour Party) and Selwyn Lloyd (Conservative Party). In the same year an Executive Committee was formed, with Will Hopper as Chairman, Halmer Hudson as Secretary and Buist, Chown, Skinner and Taube as Members. In 1972 the first full-time staff of the Institute were appointed. In 1974 the Institute moved from Bell Yard to Chandos Place. In 1975 the Meade Committee began its enquiries under the leadership of James Meade
James Meade
James Edward Meade CB, FBA was a British economist and winner of the 1977 Nobel Memorial Prize in Economic Sciences jointly with the Swedish economist Bertil Ohlin for their "Pathbreaking contribution to the theory of international trade and international capital movements."Meade was born in...
. In 1978 the Meade Report was published. In the same year the Institute moved to Castle Lane. In 1979 the Fiscal Studies publication was launched and the Working Paper series began. In 1980 the Armstrong Report was published. In 1982 the Report series was launched and the first Green Budget was issued. In 1984 The Reform of Social Security document was published by the Institute. In 1985 the Institute moved to Tottenham Court Road
Tottenham Court Road
Tottenham Court Road is a major road in central London, United Kingdom, running from St Giles Circus north to Euston Road, near the border of the City of Westminster and the London Borough of Camden, a distance of about three-quarters of a mile...
. In 1987 the Capital Taxes Group was established. In 1990 the Institute moved to Ridgmount Street. In 1991 the ESRC Centre was inaugurated. In 1994 the Tax Law Review Committee was established.
Research
Areas of research covered by the Institute include public financePublic finance
Public finance is the revenue and expenditure of public authoritiesThe purview of public finance is considered to be threefold: governmental effects on efficient allocation of resources, distribution of income, and macroeconomic stabilization.-Overview:The proper role of government provides a...
and spending, pensions and saving, company taxation, consumer behaviour and poverty
Poverty
Poverty is the lack of a certain amount of material possessions or money. Absolute poverty or destitution is inability to afford basic human needs, which commonly includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7 billion people are estimated to live...
and inequality
Economic inequality
Economic inequality comprises all disparities in the distribution of economic assets and income. The term typically refers to inequality among individuals and groups within a society, but can also refer to inequality among countries. The issue of economic inequality is related to the ideas of...
. Although most of the Institute's research is UK-focused, recent work has also looked at international development policies, for instance at education and nutrition programmes in Colombia
Colombia
Colombia, officially the Republic of Colombia , is a unitary constitutional republic comprising thirty-two departments. The country is located in northwestern South America, bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the...
.
The Institute is home to or a partner in the following research centres:
- Centre for the Microeconomic Analysis of Public Policy (CPP)
- Centre for Analysis of Youth Transitions (CAYT)
- Centre for the Economics of Education
- Centre for the Evaluation of Development Policies (EDePo)
- Tax Law Review Committee (TLRC)
- English Longitudinal Study of Ageing (ELSA)
- Centre for Microdata Methods and Practice (cemmap)
- Centre for Economic Research on Ageing (CERA)
Centre for the Microeconomic Analysis of Public Policy
Since 1991 the Institute has hosted an Economic and Social Research Council (ESRC)Economic and Social Research Council
The Economic and Social Research Council is one of the seven Research Councils in the United Kingdom. It receives most of its funding from the Department for Business, Innovation and Skills, and provides funding and support for research and training work in social and economic issues, such as...
research centre, the Centre for the Microeconomic Analysis of Public Policy (CPP). The CPP is directed by Professor Richard Blundell
Richard Blundell
Richard Blundell, CBE, FBA is a British Economist and Econometrician.He is currently the David Ricardo Professor of Political Economy at University College London and Research Director at Institute for Fiscal Studies...
and co-directors, Professor Orazio Attanasio
Orazio Attanasio
Orazio Attanasio is an Italian economist. He graduated from the University of Bologna in 1982 and London School of Economics in 1988. He then went to teach at Stanford. He is currently professor at University College London and member of IFS.- Publication :#Pension Wealth and Household Saving:...
, Professor James Banks, Professor Rachel Griffith, Professor Costas Meghir
Costas Meghir
Costas Meghir is a Greek-British economist who graduated from the University of Manchester in 1985. He was awarded the Ragnar Frisch Medal in 2000 for the article Estimating Labour Supply Responses using Tax Reforms in Econometrica...
. The CPP carries out core analytical research to enable informed microeconomic analysis of major public policy issues, from productivity growth to poverty reduction, and from promoting employment to ensuring sound public finances. Its focus is on the careful modelling of individual, household and firm behaviour, combining cutting-edge empirical analysis with detailed understanding of policy options and implementation. The CPP acts as a national resource for analysis of emerging policy challenges and draws on extensive collaboration with leading researchers in the UK, Europe, North America and the developing world. It has an established record of effective dissemination to and interaction with policymakers, civil society, the business community, academics and the general public - with an aim to seek to broaden and strengthen those links.
Centre for Microdata Methods and Practice
The Institute hosts the Centre for Microdata Methods and Practice (Cemmap), a joint venture between the Institute and the UCL Department of Economics. Cemmap's activities include:- conducting research and organising conferences, symposia, workshops and training courses;
- developing and applying methods for modelling individual behaviour, the influences on it and the impact of policy interventions; and
- maintaining an extensive network of fellows in the UK and abroad.
Cemmap has organised over 50 training courses and 15 masterclasses and is home to one of the world's leading working papers series in the field of microeconometrics with over 100 titles, many of which are published in leading journals.
Cemmap was founded in 2000 with a grant from the Leverhulme Trust
Leverhulme Trust
The Leverhulme Trust was established in 1925 under the will of the First Viscount Leverhulme, William Hesketh Lever, with the instruction that its resources should be used to support "scholarships for the purposes of research and education."...
and since 2007 has been an ESRC research centre.