The Shadow Governance: Why Britain’s Think Tanks Need Scrutiny. By Dusty Wentworth

Think tanks are often presented as neutral research bodies, offering independent expertise to politicians. Scratch beneath the surface, however, and they look far less impartial. Funded by opaque donors, many function as unregulated lobbying outfits — shaping laws, budgets, and public debate without a shred of democratic accountability.

Lobbying in Disguise: The Legal Loophole

Britain already has a lobbying register, created by the 2014 Lobbying Act. But here’s the catch: it only applies to consultant lobbyists. Think tanks are exempt.

That means a minister can receive a policy paper drafted by a think tank bankrolled by hedge funds, oil firms, or even foreign states — and the public has no way of knowing who really wrote it. Imagine a report recommending lower corporate taxes, paid for entirely by a billionaire who stands to gain most from the change.

While the Ministerial Code requires ministers to declare meetings with outside organisations, it does not cover reports, briefings, or policy documents received from think tanks. This loophole provides the perfect cover for influence that avoids scrutiny.

From New Labour to Today: A History of Influence

Think tanks have existed for decades, but they truly came into their own under Tony Blair. Organisations like the Institute for Public Policy Research (IPPR) and Demos helped develop the “Third Way” policies that defined New Labour. Blair’s team bypassed traditional power bases like trade unions and grassroots members, turning instead to think tanks for ready-made, media-friendly policies.

This progression didn’t stop when he left office. Blair created the Tony Blair Institute for Global Change (TBI), which now operates in dozens of countries advising governments on governance and economic reform. Its funding is not fully disclosed, leading critics to question whose interests it serves. TBI exemplifies how ex-leaders can convert political capital into ongoing, unaccountable influence.

Who Pays? The Conflict of Interest

Running a think tank is expensive. While some receive government contracts, these are rarely enough to cover the bills. The lack of robust public funding means think tanks must turn to private interests, often leading to potential conflicts. The rest comes from:

Corporations: sponsorships, memberships, and paid events.

Wealthy individuals: hedge fund managers and industrialists with clear interests in policy outcomes.

Foundations and trusts: philanthropic bodies funding causes aligned with their priorities.

Foreign governments: Gulf monarchies and others have quietly bankrolled British think tanks

Because disclosure is voluntary, much of this remains in the shadows. Investigations by openDemocracy and ratings by Who Funds You? show that some of Britain’s most influential think tanks refuse to name their backers or disclose amounts, earning the lowest possible transparency ratings.

Policy Laundering: The Mechanism of Hidden Influence

This process is lobbying in all but name, and it works precisely because it looks like expertise rather than persuasion:

1. A donor funds: A corporation or wealthy individual provides money to a think tank.

2. The report is produced: The think tank publishes research recommending a policy that benefits the donor.

3. Ministers adopt: Ministers cite the report’s ‘independent expertise’.

4. Policy is implemented: Policy is enacted — serving donor interests while appearing impartial and democratically derived.

Weak Safeguards, Strong Risks

Existing oversight is paper thin, leaving the system wide open to abuse:

Lobbying Act (2014): excludes think tanks entirely

Ministerial Code: records meetings, but not the policy documents or correspondence that often represent the real influence

Charity Commission: allows political activity if not explicitly party-political, but rarely intervenes

Electoral Commission: only steps in during election campaigns

ACOBA (Advisory Committee): polices the ‘revolving door’ but has no enforcement powers

Documented Examples

In 2021, Labour Together, a think tank linked to the Labour Party, was fined £14,250 by the Electoral Commission after failing to properly declare nearly £740,000 in donations, more than 20 breaches in total.

Conversely, some organisations demonstrate transparency. The IPPR has proposed a “quantitative easing reserves income levy” on banks, arguing it could raise billions to offset the estimated £22 billion annual cost of QE losses borne by taxpayers. Transparency ratings from Who Funds You? show that while IPPR scores highly for openness, many others refuse to disclose their funders.

These cases illustrate both the potential for responsible practice and the dangers of opacity.

Why It Matters

Think tanks are not harmless debating clubs. They are parallel power structures — unelected, unaccountable, and often funded by interests that prefer to stay hidden.

In a healthy democracy, policies should be shaped by voters, political parties, and open debate. The shift from a Westminster shaped by public debate to one shaped by private briefing is a creeping crisis of democracy. Until this changes, the question remains: who really governs?

Call to Action

If we want cleaner politics and greater democratic accountability, we must demand reform:

Full disclosure of all think tank donors and amounts.

Expansion of lobbying rules to cover think tanks and their correspondence with officials.

Publication of all documents received by ministers from these groups.

Real enforcement powers for regulators like the Electoral Commission and ACOBA.

This isn’t left or right. It’s about democracy itself. Write to your MP. Support transparency campaigns. Expose the funders. Because if we don’t, Britain will remain vulnerable to hidden influence.

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