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Taxpayers shouldn't fund lobbyists

This article is more than 14 years old
The government is supplying grants to organisations that influence the government, thus distorting the political debate

Stories that leak out about the dark arts of lobbying make ordinary people hot under the collar. But if they knew that they were paying for it too, that might really make their blood boil. Particularly if they found out that taxpayer-funded politics extended to big grants to campaigns for unpopular and expensive policies.

At the Taxpayers' Alliance, we've just released a major report looking into the extent of taxpayer funded lobbying and political campaigning in the UK. The report finds that nearly £38m – equivalent to the total cost of all the campaigns by the three main political parties at the last general election – was spent by government to lobby or influence government.

That is a lot of money despite our report employing a deliberately cautious methodology. Public sector organisations definitely spend part of their publicity budgets on PR but, as it isn't really possible to tell how much is spent on lobbying, we've left that out. Instead, we've just focused on the amounts they've spent hiring in external political consultants and paying for trade associations like the Local Government Association to represent their interests. Similarly, while big charities like Oxfam get huge grants from the government, there is no way to uncover the extent that this funding supports their campaigning work, so we've left that out as well and just focused on payments to organisations whose primary purpose is campaigning to change policy. Finally, much of the information had to be gathered with an FOI to some organisations likely to dole out to taxpayers' cash. All in all, it's unlikely that we've uncovered more than the tip of the iceberg.

Similar spending at the European Union level has been defended on the grounds that it balances out corporate lobbying. That just doesn't wash. Groups like the Campaign for Better Transport get financial support from both the government and corporations. The groups getting funding are those that reflect the ideological views and interests of those with the political power to give the money out, not ordinary people. Often, politicians and big business share more views with each other than the average man on the street.

Alcohol Concern have been given £515,000 and Action on Smoking and Health £191,000 from the public purse. Environmental campaigns from the Sustainable Development Commission to Friends of the Earth have received £6.7m in taxpayer funding.

But it's energy companies that have made windfall profits from government policies that push up the price of energy. Neither the environment nor the consumer has benefited. Taxes currently make up over two-thirds of the price of petrol and climate change policies make up 14% of the average household electricity bill. And when Alcohol Concern are successful in campaigning to increase the price of alcohol or Action on Smoking and Health are successful in getting tax on cigarettes put up, the poorest 10% pay far more as a share of their income than the richest.

It might still be felt that putting those taxes and regulations in place is worthwhile, despite the immediate financial cost to the poor, to safeguard people's health and reduce greenhouse gas emissions. But, the balance is being tilted in favour of the beliefs of well-off politicians and officials, who grant the money, and away from the interests of the poorest, who are already least able to communicate their needs politically.

Taxpayer-funded politics distorts the political debate and is an unfair imposition on ordinary people who often won't share the views it promotes. It strengthens the hand of the powerful and needs to end.

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