Institute for Fiscal Studies

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The Institute for Fiscal Studies
IFS logo.gif
Formation 1969
Legal status Non-profit company
Purpose Economic and public policy research
Paul Johnson
Main organ
IFS Council
(President - Rachel Lomax)
Affiliations Economic and Social Research Council (ESRC)
Website The Institute for Fiscal Studies

The Institute for Fiscal Studies is an economic research institute based in London, United Kingdom, which specialises in UK taxation and public policy.[1] It is politically independent and produces both academic and policy-related findings.[1]

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." [2]

It is located in the Bloomsbury area of Central London, close to the British Museum and University College London (UCL).


The Institute came into existence because four financial professionals - a banker and later 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.[3] 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".[4] This led the group as a whole to become determined to ensure, as Chown put it, that "never again should a government, regardless of its political colour and intentions, introduce a far-reaching tax legislation without the benefit of a deep and thorough analysis of its second- and third-order effects."[5]

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:

  • 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 1970, Dick Taverne, then a Labour MP and a former Financial Secretary to the Treasury in the Wilson government, was approached to be the Institute's first director.[6] In 1971 a Council of the Institute was formed, with President Sir Richard Powell (civil servant) and Vice-Presidents Roy Jenkins (Labour Party) and Selwyn Lloyd (Conservative Party).[4] 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 the later Nobel laureate James Meade. In 1978, the Meade Report was published and 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.[7] In 1994, the Tax Law Review Committee was established.[8]


Areas of research covered by the Institute include public finance and spending, pensions and saving, company taxation, consumer behaviour and poverty and inequality.[9] 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 (some of which are described further, in following sections):

  • 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[edit]

Since 1991 the Institute has hosted an Economic and Social Research Council (ESRC) research centre, the Centre for the Microeconomic Analysis of Public Policy (CPP).[7] The CPP is directed by Professor Richard Blundell and co-directors, Professor Orazio Attanasio, Professor James Banks, Professor Rachel Griffith, Professor Costas Meghir.[7] 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.[7] 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.[7]

Centre for Microdata Methods and Practice[edit]

The Institute hosts the Centre for Microdata Methods and Practice (Cemmap), a joint venture between the Institute and the UCL Department of Economics.[10] 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.[10]

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.[10]

Cemmap was founded in 2000 with a grant from the Leverhulme Trust and since 2007 has been an ESRC research centre.[10]


The Institute regularly publishes policy-reports and academic articles. It also produces a peer-reviewed quarterly journal, Fiscal Studies, which publishes articles submitted by a range of academics and practitioners in the field.[11] The IFS Green Budget, which discusses policy issues which are likely to be relevant for the Chancellor of the Exchequer's annual budget statement, is published early each year.[12]

Another noteworthy publication is the Mirrlees Review, which was published in September 2011.[13] The review consists of two volumes. The first of these is a series of chapters covering different aspects of the UK tax system, accompanied by commentaries voicing different opinions. The second sets out the conclusions of the review. The review was chaired by Nobel Laureate James Mirrlees and included contributions from IFS staff alongside prominent economists from various universities around the world.


The Institute frequently speaks out on politically important issues and has at different times been criticised from both sides of the political spectrum. In October 2010, Deputy Prime Minister Nick Clegg accused the IFS of using methods that were "distorted and a complete nonsense" [14] after it challenged claims that tax and benefit reforms in the June 2010 Budget were "progressive." [15] Left-wing think tank Tax Research UK stated in a report that the "Institute for Fiscal Studies is a body that persistently recommends tax increases that benefit the wealthiest in society at cost to those who make their living from work and the poorest in society".[16] The author of this report Richard Murphy of Tax Research UK has also, in The Guardian, described the IFS as having "a bias towards the neoliberal view that suggests that labour should be heavily taxed whilst capital is left virtually tax free". He added: "Whatever the motive, the IFS's claim to be unbiased appears to me shaky."[17] On another occasion, the right-leaning magazine The Spectator published a leader stating that "‘institutes’ funded by research grants (which means, usually, tax money) will always argue for more expensive meddling by the state" and that the Institute for Fiscal Studies was "the most striking example" of this.[18]

See also[edit]


  1. ^ a b "About IFS". The Institute for Fiscal Studies. Retrieved 6 September 2010. 
  2. ^ "The Charity Commission Central Register: Institute for Fiscal Studies". 
  3. ^ Taverne, Dick (March 2014). Against the Tide:politics and beyond. p. 205. 
  4. ^ a b Robinson, Bill (August 1990). "The Early Days of IFS". Fiscal Studies 11 (3): 1–11. 
  5. ^ Robinson, 1990, p. 2.
  6. ^ Taverne, Dick (March 2014). Against the Tide:politics and beyond. p. 206. 
  7. ^ a b c d e "ESRC Centre homepage". The Institute for Fiscal Studies. Retrieved 6 September 2010. 
  8. ^ "Tax Law Review Committee". The Institute for Fiscal Studies. Retrieved 22 September 2014. 
  9. ^ "What we do". The Institute for Fiscal Studies. Retrieved 6 September 2010. 
  10. ^ a b c d "About". Centre for Microdata Methods and Practice. Retrieved 6 September 2010. 
  11. ^ "Publications & Research". The Institute for Fiscal Studies. Retrieved 6 September 2010. 
  12. ^ "IFS Green Budgets". Retrieved 22 September 2014. 
  13. ^ "Mirrlees Review". Retrieved 24 September 2014. 
  14. ^ "Nick Clegg accuses IFS of 'distorted nonsense'". 21 October 2010. Retrieved 19 November 2013. 
  15. ^ "New IFS research challenges Chancellor’s ‘progressive Budget’ claim". 25 August 2010. Retrieved 21 September 2014. 
  16. ^ pg. 13
  17. ^ "The Institute for Fiscal Studies fisked". 19 August 2008. Retrieved 18 November 2013. 
  18. ^ "Leading article: The power of ideas". 23 July 2011. Retrieved 21 September 2014. 

External links[edit]