Social Market Foundation (SMF)

The Social Market Foundation (SMF) is an independent British public policy think tank based in Westminster, London. Founded in 1989, it describes itself as a cross-party organisation championing ideas that marry a pro-market orientation with concern for social justice — the philosophy of the social market economy. Named "UK Think Tank of the Year" by Prospect in 2012 and counted among the "Top 12 Think Tanks in Britain", the SMF has been influential in shaping policy on health, education, welfare and pensions. Its political journey has been unusual: created by supporters of David Owen's Social Democratic Party with early links to the Conservative Party, it later became closely identified with New Labour, and today it presents itself as proudly occupying the centre ground of British politics.

Origins in the SDP

The Social Market Foundation was founded in 1989 out of the ashes of David Owen's Social Democratic Party, using money provided by David Sainsbury. It was created by Owen supporters — Robert Skidelsky and Daniel Finkelstein are recorded as its founders — though it has never been officially affiliated with any political party. The organisation's name reflects its intellectual programme: to develop policy ideas based on a fusion of social justice and market economics. Its first publication, published in 1989 with then-chair Robert Skidelsky arguing the case, set out the concept of the "social market" that would define the foundation's work.

Early links with the Conservatives

In its early years the SMF was closely connected with the Conservative Party. It was cited as "John Major's favourite think tank" in the Financial Times in 1995, and two of its former directors, Rick Nye and Daniel Finkelstein, left to become Conservative Party advisers. The organisation hosted the then Conservative leader William Hague in 2000 for a speech on asylum policy that drew criticism from opponents. As late as 2000 the SMF described itself as "steering an independent course between the conflicting ideologies of conservatism and social democracy", reflecting its origins in the SDP tradition of One Nation thinking.

The move towards New Labour

From the late 1990s the foundation moved closer to the Labour Party. In 2001 Robert, Lord Skidelsky was replaced as chair by David, Lord Lipsey, and the organisation became associated with the policies of Tony Blair's New Labour, particularly on public service reform. In 2003 Gordon Brown delivered a keynote speech to the foundation on the subject of social markets, and in 2004 the SMF published a paper by Brown. Two former SMF directors left to work for senior Labour politicians. In September 2010 the political and social affairs journalist Mary Ann Sieghart took over as chair, and the foundation continued to position itself as a bridge between market-oriented economics and progressive social goals.

Charitable purpose and philosophy

The SMF is a registered charity (registration number 1000971) whose stated purpose is to "advance the education of the public in the economic, social and political sciences" and to "champion ideas that marry a pro-market orientation with concern for social justice". Its policy ideas are based on the concept of the social market economy — the post-war German model that combines competitive markets with strong social protections. The foundation describes itself as Britain's leading cross-party think tank, bringing together people of all parties and none to develop evidence-based policies for a fair society and a strong economy.

Research areas

The SMF's remit focuses on domestic public policy, particularly public services and welfare. Its fields of work include the cost of living, productivity, financial services and public sector reform, and the majority of its publications address education, health care and employment. It has also produced research on wide-ranging subjects including road pricing, casinos and energy policy. The foundation has been described as providing "the intellectual battering ram" for campaigns to increase competition in public services. One of its more controversial proposals was the suggestion that the public should be forced to save for a pension unless they specifically opted out — a forerunner of the auto-enrolment pensions system that was eventually adopted.

Influence on pensions and public services

The SMF's work on pensions and public service reform has been among its most consequential. Its advocacy of competition within public services helped shape the debate around choice and contestability in health and education during the New Labour years. Its pensions research, including the opt-out savings proposal, contributed to the policy thinking that led to workplace pension auto-enrolment. The Centre for Global Studies think tank originated from within the SMF under the name "The Centre for Post-Collectivist Studies", illustrating the foundation's role as an incubator of policy institutions as well as ideas.

Awards and recognition

The SMF was named "UK Think Tank of the Year" by Prospect magazine in 2012, recognising its influence on public debate and policy. It has been listed among the "Top 12 Think Tanks in Britain", a standing that reflects its consistent output and its ability to engage policymakers across party lines. Its events programme, held close to the Houses of Parliament, draws ministers, MPs, academics and journalists, and its fringe events at party conferences have been a longstanding feature of British political life.

Leadership

The foundation's leadership has included figures from across the political spectrum, reflecting its cross-party claims. Robert Skidelsky chaired the organisation in its early years before being succeeded by David Lipsey in 2001 and later by Mary Ann Sieghart in 2010. Its director is Theo Bertram, with Dr Rebecca Montacute serving as Research Director. The revolving door between the SMF and party politics — with former directors moving into advisory roles for both the Conservatives and Labour — has been both a source of its influence and a subject of comment about the closeness of think tanks to power.

Offices and organisation

The SMF is based in Westminster, close to the Houses of Parliament — an address history that includes 11 Tufton Street and Millbank Tower, locations that place it at the physical heart of the British policy world. It employs a small staff, reported at around 14 to 19 people in recent filings, with annual revenue of roughly £827,000. Its size is modest compared with some larger think tanks, but its output and media profile have consistently exceeded what its headcount might suggest.

The SMF under recent governments

The SMF has continued to adapt its cross-party pitch to changing political circumstances. During the 2010s it produced influential work on apprenticeships, childcare and the living wage, and its researchers became regular contributors to debates on productivity and regional inequality. In the 2020s the foundation has focused heavily on the cost of living crisis, net zero and fair markets, arguing that markets work best when they are properly regulated and open to all. Its events at Westminster and its party conference fringe programme remain fixtures of the political calendar.

Contact and online presence

The Social Market Foundation's official website is smf.co.uk, where it publishes its reports, briefings, blogs and event details. The site also carries commentary from its researchers on current policy debates, from the cost of living to net zero and fair markets. As a self-described centre-ground, cross-party think tank, the SMF continues to aim its research at whoever holds power — a strategy that has kept it relevant through successive changes of government since its founding in 1989.