• The purpose of the the Economic Policy Centre (EPC) is to promote high quality research and debate across all areas of economics in a free democratic society.
    The EPC's vision is to close the gap between economic policy and knowledge. Ultimately it brings together economic opinion formers - in academia, business, the media and government - in new and innovative ways.

  • The UK Space economy: the present and exciting future

    February 3rd, 2012

    Read the full pdf here.  A special thanks to our brilliant Space Fellow, Jim Bennett – as well as many others – on helping me with this wide-ranging feature article in the latest quarterly publiction of the Institute of Directors. Truth to tell, if you want a positive story about the UK Economy, this is almost the only one going.

    It’s fascinating as well to realise that some of the best places for Spaceports in the UK are in Scotland – which now comes with a new kind risk for investors should it become independent. It seems we are a long way from really fully understanding the costs and benefits of Scottish independence. But with my energy hat on, I for one wouldn’t bet on renewable energy subsidies and oil prices remaining high and stable into the future – which together form a big part of  the Scots Nationalists’ calculations.  Permanence, after all, is the illusion of every age.

    Read the full pdf here - The UK Spaece economy: the present and exciting future.

    EPC Space Fellow Jim Bennett on Yuri Gagarin’s anniversary and the New Space Race

    April 18th, 2011

    James C. Bennett writes:

    April 12th, was the 50th anniversary of the first human flight into space, that of the Russian Yuri Gagarin.  At the time, it was viewed entirely through the lens of the Cold War and its politics — as a propaganda tool by the Soviet regime, on their side — a proof of the glory of the Communist regime.  In the west, it was viewed as a symbol of Nikita Krushchev’s recent threat — “We will bury you.”   Today, the symbols of the Soviet era are found only in museums, and the same Soyuz launch vehicles now carry the double-headed eagle of the Russian Federation.  Gagarin himself is long dead, a victim of a mundane accident.  A new space race, driven not by politics but by the urge for exploration and industry pits not nation against nation, but multinational teams from across the globe in peaceful commercial competition.  In the long run Gagarin will be remembered not as the cog in the Soviet state machine that he was during his lifetime, but as the precursor of the expansion of humanity off the planet of our birth.

    Meanwhile, the emergence of a new suborbital provider intending to operate from the Netherlands demonstrates that the new space race is heating up Europe as well as America.  Recently the prestigious Southwest Research Institute, one of America’s premier space research organizations, startled the research world by reserving suborbital flights on both the American form XCOR Aerospace and the Anglo-American firm Virgin Galactic for scientific research, demonstrating that the term “space tourism” may become an inadequate description of human commercial suborbital flight.  Meanwhile, suborbital operators continue to await further clarification of the regulatory environment from authorities at both the national and European Union levels, which may determine the viability of EU member states as operational locations.  These new developments demonstrate that the stakes — jobs and stimulation of business and research —  in this matter are increasing as time goes by.

    Back to earth with housing . . .

    February 22nd, 2011

    As the first UK-based think tank with a space programme, last week’s event we organised on the UK Space Economy created quite a buzz, more than a few tweets and some very interesting follow-on content about the Isle of Man’s burgeoning space services sector.  Thanks again to Jim Bennett for a superb talk.

    So if you can forgive the pun, please watch this space for more to come.

    In the meantime, housing – i.e. the price of it – is firmly back in the news again. House prices are a national obsession and so news that asking prices for homes in England and Wales jumped 3.1% over the past month made a big splash. Over the last few years, forecasts have been even more out of line with reality for housing than the big macro indicators – inflation, growth and unemployment. So what’s going to happen?

    The paradox of the housing market is that almost unlike any other commodity, when prices start to fall, supply contracts as sellers take their properties off the market and start to rent them out instead.

    The essential thing is to keep your eye on the big picture – here’s a chart that runs from 1985-2009

    According to Rightmove, today there are 1.3 million homes for sale, but just 530,000 mortgages were approved last year. I really don’t see that improving over the next couple of years. I fear we still have a long way to go until the banks return to full financial health. And we’ll almost certainly never experience a 10 year doubling of prices ever again.

    The emerging synergies of the New Space Economy

    February 16th, 2011

    News just published by Aviation Week that Astrium is teaming up with Singapore to build a suborbital demonstrator and hopes to ultimately have a fleet of spaceplanes stationed there speaks volumes about not just the audacity inherent in New Space, but the radical internationalisation and increasingly dynamic role of the private sector.

    As the innovation accelerates and the costs fall, one can expect to see a lot more synergies involving – wealthy semi-microstates, billionaires, cash-poor state owned space agencies and dynamic private space entrepreneurs from all over the globe.

    SPACE: Britain’s New Frontier – a new paper from the EPC

    September 27th, 2010

    SPACE: Britain’s New Frontier

    Download here.

    Britain faces an historic opportunity to be a major player in space and the government must rise to the challenge.

    The EPC is the first British think tank to take a hard look at UK Space Policy and has found it wanting. Author, Jim Bennett, a space expert with over 30 years of experience at the highest practical and policy levels calls for radical redirection and a step change in political vision so that the UK can take a commanding position in the New Space Race.
    Unlike the previous Space Race, dominated by state-owned entities, a new private sector is emerging which may be dominated by suborbital flight, led by Virgin Galactic who have yet to commit to a spaceport in the UK.
    Whilst explaining the trajectory of the UK’s underperformance in Space which started with the implementation of the 1875 Explosives Act which prevented crucial rocket experimentation in the 1930s, the paper explains the genesis of the UK’s still significant niches (like satellite insurance and design) in the global space industry and  makes the following policy recommendations;

    Policy Recommendations:

    1. The UK should broaden its cooperative perspective beyond Europe – 75% of funds are currently allocated to the European Space Agency.

    2. The new UKSA must seek to take advantage of NASA’s international cooperative programmes which the UK has failed to do in the past

    3. The Commonwealth States – Australia, Canada and India – all have areas of space expertise which the UK could successfully cooperate on.

    4. Therefore the UK should aim to cooperate with Canada which has expertise in radar imaging satellites

    5. And with Australia which has extensive launch ranges

    6. As well as with India which has across the board capabilities including launch vehicles, satellites and now interplanetary probes

    7. The UKSA should send key personnel to Ottawa for an extended stay at the Canadian Space Agency to study what a small-to-medium scale agency can accomplish

    8. The UK should explore collaboration with Canada and Australia on dual-use (civil and military) space technologies and systems like communications and earth observations satellites to leverage UK defence investments in space and the high level of trust of the USA on technology-export issues

    9. The UK should seek to learn and copy from the Isle of Man’s favourable operating environment for space commerce

    10. The UK should seek to develop a civil regulatory framework for spaceflight and space activity that attracts capital from all round the world

    11. The UK should seek to actively earn from the USA’s deep experience of licensing launch sites and spaceports with a view to the future licensing of sites like Lossiemouth in Scotland

    Says author, Jim Bennett;
    Britain faces an historic opportunity to be a major player in space and the government must rise to the challenge

    You don’t need Astronauts to have a successful space programme. The New Space environment now offers British entrepreneurs, financiers and scientists to take a seat at the main table on their own terms”.Bennett also says that the UK is failing to exploit its connections with the USA and the Commonwealth to advance its own space programme;

    “Britain has networks of close ties, experiences, and mutual trust not just in one direction, but in three: Europe, the USA, and the Commonwealth. It should seek to maintain its existing productive ties with Europe, exploit the ease of business between the US and Britain to develop New Space entrepreneurship, and enhance its cooperation with the often-underestimated capabilities of Canada, Australia, and India”.