Social Market Foundation

The Social Market Foundation (SMF) is a prominent independent British public policy think tank, founded in 1989. Its core purpose is to educate the public in economic, social, and political sciences and to advocate for ideas that blend a pro-market stance with a concern for social justice. This approach is rooted in the concept of a social market economy, seeking to find a balance where markets and government collaborate to benefit society.

History and Evolution

The SMF was established by individuals associated with David Owen's 'continuing' Social Democratic Party (SDP) in 1989, with founders including Robert Skidelsky and Daniel Finkelstein. Lord Skidelsky, a Professor of Political Economy, was instrumental in developing the early intellectual framework of the social market economy for the SDP. Initially, the Foundation's early work, particularly Skidelsky's paper "The Social Market Economy," aimed to define and promote the social market idea as an alternative, drawing on the perceived success of Thatcher's liberalizing reforms. Following the SDP's dissolution in 1990, the SMF's affiliations shifted. It became closely linked with the post-Thatcher Conservative Party, even being referred to as "John Major's favourite thinktank". In the late 1990s and early 2000s, the Foundation gravitated towards New Labour, with Gordon Brown delivering a speech there in 2003 and publishing a paper with them in 2004. This evolution underscores the SMF's stated commitment to cross-party cooperation and evidence-based policy.

Business Model and Funding

The Social Market Foundation operates as a non-profit organization and a registered charity. Its business model relies predominantly on the sponsorship of its research, public policy debates, and events. The SMF maintains full editorial control over all its outputs, emphasizing transparency in its funding. It publicly lists its funders, which include charities, trusts, companies, and other organizations. For example, in 2022/2023, funders included Citizens Advice, Trust for London, Amazon UK, and various other corporations and non-profits, demonstrating a diverse funding base.

Core Products and Research Areas

As a think tank, the SMF's primary "products" are its research reports, policy publications, and public events/debates. These outputs aim to stimulate public discussion and influence policy development. The SMF's research covers a wide array of domestic public policy issues, encompassing economics and market regulation, work, skills, education, public sector reform, energy and the environment, and the distribution of power and wealth. Recent work has delved into topics such as the cost of living, productivity, financial services, public sector reform, education, health care, employment, smart data initiatives, policing efficacy, local misinformation, and pension policies. The Foundation also convenes conversations to improve policy-making and public debate, often featuring senior politicians and officials.

Market Position and Strategic Direction

The Social Market Foundation is recognized as one of Britain's leading cross-party think tanks, positioned in the center-ground of politics. Its influence is evident through its work being consulted by senior politicians and reported in the national media. The SMF distinguishes itself by promoting ideas that are pro-market but not laissez-faire, advocating for sustainable welfare systems and seeking to improve public services through effective competition and choice. The organization emphasizes evidence-based policy and cross-party cooperation, contributing to a more informed public debate on critical social and economic challenges. The SMF continues to undertake work on contemporary issues such as the decarbonization of the UK and the just transition to Net Zero, and exploring public attitudes to new technologies and economic policies.