**Charity Registration No. 1096300** **Company Registration No. 04297905 (England and Wales)** ## **POLICY EXCHANGE LIMITED** ## **ANNUAL REPORT AND FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 30 SEPTEMBER 2024** ## **POLICY EXCHANGE LIMITED** ## **LEGAL AND ADMINISTRATIVE INFORMATION** |**Trustees**|Karan Bilimoria|| |---|---|---| ||Alexander Downer|| ||Andrew Feldman|| ||David Harding|| ||Patricia Hodgson|| ||Greta Jones|| ||Andrew Law|| ||Charlotte Metcalf|| ||David Ord|| ||Daniel Posen|| ||Andrew Roberts|| ||William Salomon|| ||Simon Wolfson|| ||Nigel Wright|| ||Ommasalma Shah|(Appointed 30 January 2025)| |**Director of operations**|Dean Godson|| |**Charity number**|1096300|| |**Company number**|04297905|| |**Registered office**|Acre House|| ||11-15 William Road|| ||London|| ||United Kingdom|| ||NW1 3ER|| |**Auditor**|HW Fisher Audit|| ||Acre House|| ||11-15 William Road|| ||London|| ||United Kingdom|| ||NW1 3ER|| |**Bankers**|Barclays Bank PLC|| ||1 Churchill Place|| ||London|| ||E14 5HP|| ||Natwest Bank PLC|| ||135 Bishopsgate|| ||London|| ||EC2M 3UR|| ## **POLICY EXCHANGE LIMITED** ## **CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 7| |Statement of Trustees' responsibilities|8| |Independent auditor's report|9 - 11| |Statement of financial activities|12 - 13| |Balance sheet|14| |Statement of cash flows|15| |Notes to the financial statements|16 - 27| ## **POLICY EXCHANGE LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2024**_ The Trustees present their report and financial statements for the year ended 30 September 2024. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective January 2019). ## **Objectives and Activities** The objects of Policy Exchange as set out in its Memorandum and Articles of Association are as follows: _The non partisan advancement of education in the economic, social and political sciences and their effect on public policy and the policy making process in the UK and the promotion and publication of objective research._ Policy Exchange is one of the UK’s leading independent think tanks. As an educational charity, our mission is to develop and promote new policy ideas which deliver better public services, a stronger society and a more dynamic economy for all. The Trustees have considered the Charity Commission’s guidance on public benefit and place a number of objectives at the heart of their strategic thinking when considering how best to discharge Policy Exchange’s mission: - Quality of research – the Trustees consider that the authority and credibility of Policy Exchange’s research output must be of the highest standard in order to ensure that its work has maximum impact. Policy Exchange does not take commissions. Its research is independent and evidence-based, and draws upon a wide circle of academics, field specialists and practitioners in order to better inform its thinking and conclusions. The Charity recruits senior policy experts from the political, business and academic worlds and is proud of its research heads and advisers who are well established thought leaders in their respective fields. - Dissemination of ideas – Policy Exchange makes use of a wide range of communications channels to reach as broad an audience as possible. Its communications strategy is constantly reviewed in order to take advantage of new developments and the Charity measures the quality and quantity of its audiences closely as it seeks to reach out to new audiences, both nationally and internationally. Policy Exchange’s output takes the form of long and short written reports, comment pieces and articles for the national press, a lively programme of events (which are live streamed), interactive webinars, broadcast media interviews and set pieces. Social media platforms and the Charity’s website are central to achieving its aims and Policy Exchange devotes significant ongoing resources to keeping them fresh and lively. - Two way dialogue with policy makers and opinion formers from across the political spectrum – Policy Exchange works closely with key decision makers and policy experts of all political stripes, with whom it also shares its reports and ideas. Impact is measured by the extent to which the Charity’s work is able to influence policy change, to the benefit of the wider public. ## **Achievements and Performance** Policy Exchange continued to make a significant impact across a wide range of policy sectors in 2023-2024, hosting senior domestic and international speakers and publishing 46 new policy papers, research reports and briefings across the full spectrum of policy areas. Policy Exchange hosted a keynote speech from then Prime Minister Rt. Hon Rishi Sunak MP and two keynote speeches from then Shadow Secretary of State for Defence Rt. Hon John Healey MP and then Shadow Secretary of State for Health Rt. Hon Wes Streeting MP. We also hosted a range of other events with leading members of the Cabinet and Shadow Cabinet on subjects including Energy Security, Industrial Strategy and Education, and a book-launch event for the third volume of journalist Tim Shipman’s "Brexit quartet", attended by senior Ministers, MPs, Peers and advisers from across the political spectrum. Due to our status as the home of education reform, Policy Exchange was chosen to host the launch of the 2022 UK PISA results. A panel of current and former Ministers, Ofsted’s Chief Inspector and the Co-Author of the PISA report presented the results, in which England had moved further up the international tables. This was followed by a series of events on _Understanding Republican Foreign Policy_ , featuring speakers including Nikki Haley, Elbridge Colby, Mike Pompeo, Matt Pottinger and Joni Ernst. Other distinguished international speakers included a keynote speech by His Excellency Dr. Mohammad bin Abdulkarim Al-Issa, Secretary General of the Muslim World League; and leading psychologist and author Professor Jonathan Haidt. - 1 - ## **POLICY EXCHANGE LIMITED** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2024**_ ## **Achievements and Performance (continued)** Defence and Security were major themes of our work this year, with impactful publications published including _Sovereignty and Security in the Indian Ocean_ , on why the UK should not give up the Chagos Islands; _Closing the Back Door: Rediscovering Northern Ireland’s Role in British National Security_ ; and _From space to seabed: Protecting the UK’s undersea cables from hostile actors._ A series of interventions by Policy Exchange’s _Judicial Power Projects_ on the Government’s Rwanda Plan were widely cited in Parliament and in national media. Other major themes included the Constitution and the Rule of Law, with publications such as _Government Lawyers, the Civil Service Code, and the Rule of Law_ and events such as _Arms Embargoes and the Right to Self Defence_ exploring the nature and scope of what is meant by the rule of law, and its implications. Our report _Might is Right?_ , analysing the current era of increasingly disruptive protests, was widely covered by over 14 national news outlets and mentioned numerous times in Parliament on both sides of both houses. Policy Exchange also published reports across a range of sectors included studies on health ( _Just about Managing_ – on NHS management), energy ( _Decarbonising the Grid)_ , architecture ( _Beauty and Socialism_ ) and housing ( _Provably Popular Homes_ ). In the lead-up to the General Election, Policy Exchange launched two new workstreams _: The Future of the Right_ and _The Future of the Left._ _The Future of the Right_ programme is led by former ConservativeHome Editor Lord Paul Goodman, as well as Lord Charles Moore. Lord Moore is an authorised biographer of Margaret Thatcher, and will be looking at her legacy going forward in her Centenary year (2025) – which also marks fifty years since she became Leader of the Conservative Party. Initial activities included an event on _Lessons from Canada_ , with former Canadian Prime Minister Stephen Harper and a high-level panel at the Conservative Party Conference with former and current Conservative MPs. Lord Maurice Glasman began a parallel work programme on the Future of the Left with the former Labour MP for Dagenham, Jon Cruddas, and political advisor and writer Jonathan Rutherford. Other contributors including top academics Helen Thompson and Luke Bretherton and broadcaster and writer Sir Trevor Phillips – Senior Fellow at Policy Exchange – will also be contributing to this new work stream. A series of events at the Labour Party Conference, including with Secretary of State for Defence John Healey, continued Policy Exchange’s engagement with the new Labour Government. ## **Parliamentary Engagement** Over this period, Policy Exchange’s work has continued to resonate with all main parties and across both Houses of Parliament. The organisation’s research has been cited by cross-party parliamentarians 80 times between October 2023 and September 2024. This is in addition to seven appearances by Policy Exchange’s subject experts in this period in front of Select Committees of both Houses to give Oral Evidence. Committee appearances across this period include sessions with the Foreign Affairs Committee; Business and Trade Committee; European Scrutiny Committee; Defence Committee; Justice and Home Affairs Committee; and International Relations and Defence Committee. Our work has been championed from the Despatch Box by Ministers and Shadow Ministers. This has included the then Prime Minister, Rt. Hon Rishi Sunak MP; Secretary of State for Work and Pensions, Rt. Hon Mel Stride MP; Minister for Industry and Economic Security, Rt. Hon Nus Ghani MP; Immigration Minister, Rt. Hon Robert Jenrick MP; and Northern Ireland Minister, Lord Caine. Mentions from Labour Parliamentarians have included Opposition Whip, Andrew Western MP; Shadow Spokesperson for Health and Social Care, Baroness Merron and Secretary of State for Business and Trade, Rt. Hon Jonathan Reynolds MP. The House of Commons and House of Lords Libraries have frequently used Policy Exchange’s output in topical subject briefings for parliamentarians ahead of parliamentary debates. This has been the case eight times during this period. Our research continues to be endorsed by leading cross-party figures, including Rt. Hon Sir Sajid Javid; Rt. Hon Jim Murphy; Sir Michael Fallon; Rt. Hon Lord Blunkett; Rt. Hon Lord West of Spithead GCB DSC; Rt. Hon Nadhim Zahawi; Lord Glasman; Rt. Hon Jesse Norman MP; and Rt. Hon Lord Robertson of Port Ellen KT, to name a few. - 2 - ## **POLICY EXCHANGE LIMITED** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2024**_ ## **Media and Digital Outreach** Policy Exchange’s output was featured widely across the media between October 2023 to September 2024. A selection of highlights from this period are outlined below. Ahead of the King’s Speech in October 2023, Policy Exchange published _What do we want from the King’s Speech?_ The report received widespread coverage in The Times, The Daily Telegraph, The Daily Mail, The Sun, The Daily Express, The Independent, Politico's London Playbook and Housing Today. This was followed by _Sovereignty and Security in the Indian Ocean_ looking at issues concerning the Government’s negotiation of a treaty of cession with Mauritius and makes a case for why the government should retain Diego Garcia – the site of a critically important UK/US naval base and a key strategic asset for the UK. The report was covered in The Times, The Daily Telegraph, The Daily Mail, The Daily Express, City A.M, Politico's London Playbook and The National. In November, Policy Exchange’s Head of Crime and Justice, David Spencer, was interviewed regarding public order legislation as it impacts the policing of Gaza marches by Chris Mason, Political Editor at the BBC. Their exchange was televised on BBC News at Six on Thursday evening. Policy Exchange then published a landmark report into the Criminal Justice System - _The Wicked and the Redeemable: A Long-Term Plan to Fix a Criminal Justice System in Crisis_ – which was covered by The Times, The Daily Telegraph, The Daily Mail and Sky News. Later that month exclusive polling published by Policy Exchange - conducted by YouGov - exposed that a de facto blasphemy code is being introduced into our schools. The accompanying report was covered by The Times, The Daily Telegraph, The Daily Mail, The Sun, The Daily Express, The Independent, The Evening Standard and Politico's London Playbook. December 2023 saw Policy Exchange make the front page of The Daily Mail with a report analysing levels of potential political indoctrination amongst school children which could be in contravention of the 1986 and 1996 Education Acts. The Times, The Daily Telegraph and The Sun also reported on Policy Exchange's findings. At the end of the year Policy Exchange dominated the news with the publication of _Levelling the Playing Field: Why women and girls matter in amateur sport_ , backed by athletes Sharron Davies OBE, Martina Navratilova and Tom Daley CBE, looking at the issues around fairness and safeguarding of women and girls in amateur sport. The report was covered by BBC Radio 4's Today, BBC Radio 4's World at One, The Times, The Daily Telegraph, The Daily Mail, The Sun, The Daily Express and The Guardian. On the day of publication, it was the Leader Article in both The Daily Mail and The Sun. February 2024 saw a new report by Policy Exchange calling for the UK Government and its regional partners to unite in pressing Dublin to assume a greater collective security. It featured on the front page of The Daily Telegraph, as well as in The Times, Daily Mail, The Sun, The Guardian, The Express, The Mirror, Politico’s London Playbook. Iain Martin focused on the report for his Times column, commending the "...brilliant new report by the think tank Policy Exchange". This was followed by a report urging the UK Government to develop a seabed warfare strategy to protect our undersea fibre-optic cables, and other critical subsea infrastructure. It was covered in The Times, The Daily Telegraph (accompanied by a supportive editorial), the Daily Mail, The Daily Express and The National. _Decarbonising the Grid: Three scenarios for achieving Net Zero Power_ - using state-of-the-art economic modelling conducted by Aurora Energy Research - was covered in The Daily Telegraph, The Daily Mail, The Daily Express, Politico's London Playbook, GB News, Mail Online, City A.M., Guido Fawkes and energy publication Edie. It was also the focus of leader columns in The Times and The Daily Mail. A major Policy Exchange study – backed by leading psychologist and bestselling author, Professor Jonathan Haidt – then examined the link between smartphone ownership, social media use and mental health issues in children and young people. The report received wide-spread coverage, with articles in The Times, The Daily Telegraph, The Daily Mail, The Sun, The Mirror, The Independent, The Evening Standard and Sky News. Iain Mansfield was also interviewed on LBC, Times Radio and Sky Radio. The Daily Mail also reported on a letter signed by 50 MPs and Peers urging the enforcement of a phone ban in schools - inspired by Policy Exchange's report. _The UK’s Broken Housing Market: Causes, Consequences, and Cures_ , by leading economist Roger Bootle and Policy Exchange’s Head of Political Economy James Vitali, with a Foreword from former Labour Housing Secretary Ruth Kelly, was covered in The Daily Telegraph and Politico's London Playbook. Later that summer, a Policy Exchange report analysed the issues around disruption on Britain’s railways – and suggested options for resolving the problems at hand, including a mass recruitment campaign to train 2,000 new drivers a year. This was covered in The Sunday Telegraph, The Sunday Times, The Sunday Express, The Sun on Sunday, and ConservativeHome. - 3 - ## **POLICY EXCHANGE LIMITED** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2024**_ ## **Media and Digital Outreach (continued)** _Provably Popular Homes: Holding Developers to account with Systematic Beauty Polling’_ and _‘Beauty and Socialism: How the Left can put Beauty back into Britain_ – with a Foreword from former Labour MP and policy chief Jon Cruddas - received coverage in The Daily Telegraph and Politico’s London Playbook, Building Design, Architect’s Journal, Housing Today, and Building. It was the focus of Melanie McDonagh’s Telegraph column, whilst Ike Ijeh also wrote an op-ed for The Evening Standard, where he argued that "... in a society where beauty doesn’t matter, it is the poor who suffer most." Finally, in September _Just About Managing: The Role of Effective Management and Leadership in Improving NHS Performance and Productivity_ was covered by Politico, The Sun, Telegraph, City Am, The British Medical Journal and leading healthcare trade publication, Health Service Journal. Policy Exchange continued to enjoy a strong presence online, with a large following on X and YouTube – where thousands of people have joined events virtually. ## **Policy Impact** Our work has had impact across the full spectrum of policy, with particular highlights from this period set out below. In February 2024, the Government announced new laws to deal with disruptive protests including the intention to deal with the issues created by the Supreme Court in the case of R v Ziegler. Policy Exchange had addressed this in both _The Just Stop Oil Protests: A legal and policing quagmire_ and _Amending the Public Order Bill_ . In September 2024, _Might is Right: The 'Right to Protest'_ in a new era of disruption and confrontation, resulted in the first ever reappraisal from the Metropolitan Police of their approach to handling these matters. Our report, _Schools Out? Selected documents and analysis of the current school strikes,_ published in December 2023, led to the Department for Education issuing new statutory guidance which explicitly stated that "...Leave of absence should not be granted for a pupil to take part in protest activity during school hours." The influence of our Transport, Infrastructure and Liveable London Unit culminated in October 2023, when the Prime Minister set out that the Government would not be proceeding with the HS2 high-speed rail line from Birmingham to Manchester. Our report, _HS2: The Kindest Cut of All_ had revealed that scaling back HS2 could save £3bn per year by 2027/28 and perhaps £44bn or more in total. Policy Exchange received widespread coverage as the authoritative reference point for this debate. The work of our Equality and Identity Unit continued to demonstrate impact. It was announced in December 2023 that judges had ruled that the UK Government acted lawfully in blocking the Scottish Government's gender self-ID reforms. Policy Exchange's paper _The Scottish Gender Recognition Reform Bill: The Case for a Section 35 Order_ , analysed the issues. Later that month, the draft guidance for schools on Gender Questioning Children was released, with several recommendations from _Asleep at the Wheel: An Examination of Gender and Safeguarding in Schools_ being implemented by the Government. In May 2024, the Health Secretary, Rt. Hon Victoria Atkins MP implemented a further recommendation from the report when she used emergency legislation to ban the private provision of puberty blockers to children. Following the July 2024 General Election, Labour’s Health Secretary, Rt. Hon Wes Streeting MP announced that he would uphold and make permanent the previous Government’s ban on puberty blockers. In April, during Energy Security and Net Zero Oral Parliamentary Questions, the Secretary of State for Energy Security and Net Zero, Rt. Hon Claire Coutinho MP cited the headline figure from our report, _Decarbonising the Grid: Three scenarios for achieving Net Zero Power_ , stating that a net zero power grid by 2030 would cost £116bn (link). The report was also featured in an article published by BBC Verify considering Labour's energy targets for 2030, and referred to positively by Shadow Energy Secretary Rt. Hon Ed Miliband MP in an exchange on X. In education, our April 2024 report, _Disconnect: The Case for a Smartphone Ban in Schools_ had immediate impact, with 50 MPs and Peers publishing a joint letter to the Prime Minister, citing our work, and calling for the Government to act. In a Commons debate that followed, three Parliamentarians referenced this work, including a former Health and Social Care Minister who previously held the public health brief. The following September, the Department for Education in Northern Ireland issued new guidance to ban smartphones in schools. Following the General Election, the Government announced that the Apprenticeship Levy would be reformed, something that the Education Unit called for in _Reforming the Apprenticeship Levy._ Recommendations from our 2022 report, _A Fresh Shot_ , whereby pharmacy technicians can deliver flu jabs with 'patient guided direction', came into force from September 2024. - 4 - ## **POLICY EXCHANGE LIMITED** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2024**_ ## **Policy Impact (continued)** For the Crime and Justice Unit, this period saw the introduction of bays across the City of Westminster for hired ‘e-bikes’, following our paper _A Culture of Impunity: The ongoing erosion of disabled people’s access to Parliament and Westminster_ and changes to how the police deal with requests for assistance from Mental Health agencies, as recommended in _What do we want from the next Prime Minister?_ ## **Future Plans** Following a successful year, Policy Exchange is planning to broaden and deepen its impact through evidence-driven research and building relationships with a wide range of influential domestic and international figures across a range of issues. Our two new flagship programmes, The Future of the Left and the Future of the Right, will seek to explore, respectively, the tensions and choices involved in governing from the left, and where next in policy terms for a right that is looking to rebuild. Our Portrait of Modern Britain programme will support these endeavours with a series of polling-informed, data-rich reports focusing on ethnicity and religion, on the young, and on core public services. Policy Exchange’s Judicial Power Project will kick-start a sustained programme on the nature of the rule of law, including a new major workstream on the future of human rights law. This will sit alongside our existing work on global security and defence, public services, crime and justice and a continued focus on increasing economic growth and productivity. Supporting all of this work will be our external events programme, in which we intend to host a wide range of inspiring and high-profile speakers from Britain and internationally, from across the political spectrum. ## **Fundraising** Policy Exchange relies on the support of a broad spread of regular donors for its work. Fundraising for specific research and events is done on a project by project basis, according to Policy Exchange’s own research priorities, and its editorial independence is a precondition of any engagement with donors. Policy Exchange does not work with any external professional fundraisers or employ any large scale targeted fundraising activities and therefore does not participate in any fundraising regulatory schemes, relying instead on the quality of its research and its proven track record of effecting policy change, in order to attract support for its ongoing work. Fundraising costs incurred by the Charity during the year mainly comprise salaries. ## **Financial Review** The results for the year and financial position of the Charity are set out in the annexed financial statements. Policy Exchange recorded a surplus of £354,363 (2023: £186,144) on income of £4,316,531 (2023: 4,021,337). Costs increased to £3,962,168 compared with £3,835,193 the previous year, chiefly reflecting higher research expenses. ## **Reserves Policy** The Trustees recognise the need to hold reserves and allow for seasonal or other fluctuations in donations and/or expenditure. Total reserves at 30 September 2024 stood at £2,909,548 of which £520,476 was restricted. The Trustees review carefully the level of reserves and aim to keep a level of unrestricted reserves equivalent to between four and six months’ regular operating costs in order to manage any unexpected shocks. At £2,389,072, unrestricted reserves at 30 September 2024 comfortably exceeded this requirement and the Trustees are therefore satisfied that the Charity’s reserves are sufficient. ## **Structure, Governance and Management** Policy Exchange is a registered charity, number 1096300, and is constituted as a Charitable Company limited by guarantee governed by its Memorandum and Articles of Association dated 9 November 2001 and revised on 3 May 2011. The company was registered as a charity with the Charity Commission of England and Wales on 3 March 2003. The Trustees, who are also Members of the Charity, serve a four year term before being required to seek re-election. None of the Trustees have any beneficial interest in the Charity. The Trustees delegate the day-to-day running of the Charity to the Senior Management Team. The Senior Management Team makes quarterly reports to the Board of Trustees on any significant matters across all areas of the Charity, including changes in staff, policy research and financial issues. The Board of Trustees is responsible for making major decisions of a strategic nature with regard to both Policy Exchange Limited and its trading subsidiary Policy Exchange Events Limited (formerly The Ideas Space Limited). - 5 - ## **POLICY EXCHANGE LIMITED** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2024**_ ## **Structure, Governance and Management (continued)** A separate Risk and Remuneration Committee, comprising three Trustees who also serve on the Main Board, meets annually – or more often if required – to review the major risks which might threaten the successful operation of the Charity. Matters around pay and compensation for the Charity’s Director are also part of the Committee’s remit, which reports directly to the Chairman of Trustees at the relevant meeting of the Full Board of Trustees. ## **Directors and Trustees** The Directors of the company are also Trustees of the Charity, and there are no other trustees. The following Directors served throughout the year and up to the date of signature of the financial statements except where noted: Karan Bilimoria Pamela Dow (Retired on 20 May 2024) Alexander Downer Andrew Feldman David Harding Patricia Hodgson Greta Jones Andrew Law Charlotte Metcalf David Ord Daniel Posen Andrew Roberts William Salomon Ommasalma Shah (Appointed on 30 January 2025) Simon Wolfson Nigel Wright ## **Appointment and Training of Trustees** Trustees may, from time to time, and at any time, appoint any person to be a Trustee at any of the Quarterly Board Meetings. All Trustees have successful track records in the fields of journalism, commerce, the arts, the armed services, academia or government. Each one has experience in participating in formal committee structures and understands the responsibilities of acting as a trustee for a charitable organisation. All new Trustees are given the opportunity to spend time with management to familiarise themselves with the operations and understand the key issues that surround the organisation. ## **Risk Management** The Risk and Remuneration Committee identified two particular on-going operational risks for consideration: - Upholding the rigour and integrity of Policy Exchange’s research and event programme. The Trustees recognise that Policy Exchange’s reputation for achieving policy impact depends on the quality and depth of its research output. In order to maintain its high standards and record of policy impact, Policy Exchange has developed robust internal systems for conducting its research activities. Individual research programmes are set by the programme heads and are regularly reviewed by the Senior Management Team and, where necessary, by the Board of Trustees. Projects must go through a rigorous internal approval process before being allowed to proceed. Questions of independence, balance and impact are considered alongside the detail of the research itself. Researchers are encouraged to consult widely and Policy Exchange has developed extensive specialist networks with academics, field specialists and Government departments in order to better inform its work and assist with peer review. Emphasis is placed on ensuring that policy recommendations are evidence-based and implementable. - Financial Risk associated with dips in income. The reserves policy laid out above is intended to provide a cushion against financial volatility, but in addition Policy Exchange continues to pursue a policy of encouraging unrestricted donations for its day to day work, giving it increased flexibility to allocate funds as needed. - 6 - ## **POLICY EXCHANGE LIMITED** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2024**_ ## **Statement of disclosure to auditor** So far as each person who was a trustee at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the Trustees individually have taken all the necessary steps that they ought to have taken as Trustees in order to make themselves aware of all relevant audit information and to establish that the Charity’s auditor is aware of that information. On behalf of the board of Trustees William salomon …………………….. William Salomon Trustee Dated: 26 Jun 2025 - 7 - ## **POLICY EXCHANGE LIMITED** ## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2024**_ The Trustees, who are also the directors of Policy Exchange Limited for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these financial statements, the Trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation. The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. - 8 - ## **POLICY EXCHANGE LIMITED** ## **INDEPENDENT AUDITOR'S REPORT** ## **TO THE MEMBERS OF POLICY EXCHANGE LIMITED** ## **Opinion** We have audited the financial statements of Policy Exchange Limited (the ‘Charity’) for the year ended 30 September 2024 which comprise the Statement of Financial Activites, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice). ## In our opinion, the financial statements: - give a true and fair view of the state of the charitable company's affairs as at 30 September 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the _Auditor's responsibilities for the audit of the financial statements_ section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of our audit: - the information given in the Trustees' report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the directors' report included within the Trustees' report has been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the Trustees' report. - 9 - ## **POLICY EXCHANGE LIMITED** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)** ## **TO THE MEMBERS OF POLICY EXCHANGE LIMITED** We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' report and from the requirement to prepare a strategic report. ## **Responsibilities of Trustees** As explained more fully in the statement of Trustees' responsibilities, the Trustees, who are also the directors of the Charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. ## **Auditor's responsibilities for the audit of the financial statements** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. As part of our planning process: - We enquired of management the systems and controls the charity has in place, the areas of the financial statements that are most susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The charity did not inform us of any known, suspected or alleged fraud. - We obtained an understanding of the legal and regulatory frameworks applicable to the charity. We determined that the following were most relevant: the Charity SORP, FRS 102, Charities Act 2011 and Companies Act 2006. - We considered the incentives and opportunities that exist in the charity, including the extent of management bias, which presents a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly. - Using our knowledge of the charity, together with the discussions held with the charity at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment. - 10 - ## **POLICY EXCHANGE LIMITED** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)** ## **TO THE MEMBERS OF POLICY EXCHANGE LIMITED** The key procedures we undertook to detect irregularities including fraud during the course of the audit included: - Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied. - Assessing the extent of compliance, or lack of, with the relevant laws and regulations. - Documenting and verifying all significant related party balances and transactions. - Reviewing documentation such as the Trustees' Minutes for discussions of irregularities including fraud. - Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual. - Obtaining third-party confirmation of material bank balances. - Testing key income lines, in particular cut off, for evidence of management bias. - Performing physical verification of tangible fixed assets - Assessing the validity of the classification of income, expenditure, assets and liabilities between unrestricted, designated and restricted funds Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the accounts even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the trustees of the charity. A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor's report. ## **Use of our report** This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed. Russell Nathan ## **Russell Nathan (Senior Statutory Auditor) for and on behalf of HW Fisher Audit** Chartered Accountants Statutory Auditor Acre House 11-15 William Road London NW1 3ER United Kingdom 26 Jun 2025 ......................... - 11 - ## **POLICY EXCHANGE LIMITED** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2024**_ |**Current financial year**
**Unrestricted**
**Unrestricted**
**funds**
**funds**
**general**
**designated**
**2024**
**2024**
**Notes**
**£**
**£**
**Income and endowments from:**
Donations, gifts and grants
**3**
1,733,370
-
Incoming resources from charitable
activities
**4**
368,000
-
Trading income
**5**
40,417
-
Investments
**6**
65,619
-
Other income
**7**
-
-
**Total income**
2,207,406
-
**Expenditure on:**
Raising funds
**8**
219,650
-
Research
**9**
1,883,151
-
**Total resources expended**
2,102,801
-
**Net income for the year/**
**Net movement in funds**
104,605
-
Fund balances at 1 October 2023
2,184,467
100,000
**Fund balances at 30 September 2024**
2,289,072
100,000|**Restricted**
**funds**
**2024**
**£**
2,109,125
-
-
-
-
2,109,125
-
1,859,367
1,859,367
249,758
270,718
520,476|**Total**
**2024**
**£**
3,842,495
368,000
40,417
65,619
-
4,316,531
219,650
3,742,518
3,962,168
354,363
2,555,185
2,909,548|Total
2023
**£**
3,461,148
467,350
70,835
21,745
259| |---|---|---|---| ||||4,021,337| ||||262,468| ||||3,572,725| ||||3,835,193| ||||186,144
2,369,041| ||||2,555,185| All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. - 12 - ## **POLICY EXCHANGE LIMITED** ## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2024**_ ## **Prior financial year** |**Unrestricted**
**Unrestricted**
**funds**
**funds**
**general**
**designated**
**2023**
**2023**
**Notes**
**£**
**£**
**Income and endowments from:**
Donations, gifts and grants
**3**
1,654,923
-
Incoming resources from charitable activities
**4**
467,350
-
Trading income
**5**
70,835
-
Investments
**6**
21,745
-
Other income
**7**
259
-
**Total income**
2,215,112
-
**Expenditure on:**
Raising funds
**8**
262,468
-
Research
**9**
1,590,006
-
**Total resources expended**
1,852,474
-
**Net income for the year/**
**Net movement in funds**
362,638
-
Fund balances at 1 October 2022
1,821,829
100,000
**Fund balances at 30 September 2023**
2,184,467
100,000|**Restricted**
**funds**
**2023**
**£**
1,806,225
-
-
-
-
1,806,225
-
1,982,719
1,982,719
(176,494)
447,212
270,718|**Total**
**2023**
**£**
3,461,148
467,350
70,835
21,745
259| |---|---|---| |||4,021,337| |||262,468| |||3,572,725| |||3,835,193| |||186,144
2,369,041| |||2,555,185| All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. - 13 - ## **POLICY EXCHANGE LIMITED** ## **BALANCE SHEET** ## _**AS AT 30 SEPTEMBER 2024**_ |**Notes**
**Fixed assets**
Tangible assets
**13**
Investments
**14**
**Current assets**
Debtors
**16**
Cash at bank and in hand
**Creditors: amounts falling due within one year**
**17**
Net current assets
**Total assets less current liabilities**
**Income funds**
Restricted funds
**19**
Unrestricted funds
Designated funds
**20**
General unrestricted funds
The financial statements were approved by the Trustees on ...............
..............................
William Salomon
**Trustee**
26 Jun
William Salomon|**2024**
**£**
324,303
2,791,927
3,116,230
(457,371)
100,000
2,289,072
..........
2025|**£**
250,687
2
250,689
2,658,859
2,909,548
520,476
2,389,072
2,909,548|**2023**
**£**
370,443
2,633,731
3,004,174
(750,092)
100,000
2,184,467|**£**
301,101
2| |---|---|---|---|---| |||||301,103
2,254,082| |||||2,555,185| |||||270,718
2,284,467| |||||2,555,185| |||||| ## **Company Registration No. 04297905** - 14 - ## **POLICY EXCHANGE LIMITED** ## **STATEMENT OF CASH FLOWS** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2024**_ |**Notes**
**Cash flows from operating activities**
Cash generated from operations
**24**
**Investing activities**
Purchase of tangible fixed assets
Investment income received
**Net cash generated from investing activities**
**Net cash used in financing activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2024**
**£**
(801)
65,619|**£**
93,378
64,818
-
158,196
2,633,731
2,791,927|**2023**
**£**
(10,181)
21,745|**£**
271,875
11,564
-| |---|---|---|---|---| |||||283,439
2,350,292| |||||2,633,731| - 15 - ## **POLICY EXCHANGE LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 30 SEPTEMBER 2024**_ ## **1 Accounting policies** ## **Charity information** Policy Exchange Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Acre House, 11-15 William Road, London, NW1 3ER, United Kingdom. ## **1.1 Accounting convention** The financial statements have been prepared in accordance with the the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (effective 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £. Consolidated accounts have not been prepared as the inclusion of Policy Exchange Events Limited, the charity's only subsidiary, in a set of consolidated accounts would not be material for the purposes of giving a true and fair view The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. ## **1.2 Going concern** At the time of approving the accounts, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the accounts. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives. Designated funds comprise funds which have been set aside at the discretion of the Trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the accounts. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. ## **1.4 Incoming resources** Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. - 16 - ## **POLICY EXCHANGE LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2024**_ ## **1 Accounting policies** **(Continued)** ## **1.5 Resources expended** Expenditure is recognised on an accruals basis, exclusive of value added tax. Costs of generating funds are those costs incurred in attracting voluntary income, in particular grant funding and the costs of maintaining the company's profile within the sector. Expenditure relating to research and events activities are those elements of expenditure directly incurred in performing these activities. Governance costs include those costs incurred in the governance of the company and are primarily associated with constitutional and statutory requirements. Support costs have been allocated in full to the single charitable activity - Research. ## **1.6 Tangible fixed assets** Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses. Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows: Short leasehold Over the life of the lease Computer equipment 3 years straight line Fixtures, fittings & equipment 5 years straight line The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year. ## **1.7 Fixed asset investments** Fixed asset investments are initially measured at transaction price excluding transaction costs. Investments are subsequently held at cost less any impairments. ## **1.8 Impairment of fixed assets** At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). ## **1.9 Financial instruments** The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all its financial instruments. The charity only has assets and liabilities of a kind that qualify as basic financial instruments. These financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. ## **1.10 Taxation** The charity is a registered charity and is therefore exempt from taxation on income and gains falling within Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied to charitable purposes. - 17 - ## **POLICY EXCHANGE LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2024**_ ## **1 Accounting policies** ## **(Continued)** ## **1.11 Employee benefits** The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. ## **1.12 Retirement benefits** The Charity operates a defined contributions stakeholder pension scheme. Contributions are charged in the financial statements as they become payable in accordance with the rules of the scheme. ## **1.13 Leases** Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease. ## **2 Critical accounting estimates and judgements** In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. There were no critical accounting estimates and judgements. ## **3 Donations, gifts and grants** ||**Unrestricted**|**Restricted**|**Total**|Unrestricted|Restricted|Total| |---|---|---|---|---|---|---| ||**funds**|**funds**||funds|funds|| ||**general**|||general||| ||**2024**|**2024**|**2024**|2023|2023|2023| ||**£**|**£**|**£**|£|£|£| |Donations and gifts|1,733,370|2,109,125|3,842,495|1,654,923|1,806,225|3,461,148| ## **4 Incoming resources from charitable activities** ||**Corporate**|**Corporate**| |---|---|---| ||**events**|**events**| ||**2024**|**2023**| ||**£**|**£**| |Sales within charitable activities|368,000|467,350| - 18 - ## **POLICY EXCHANGE LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2024**_ |**5**
**6**
**7**
**8**|**Trading income**
**Unrestricted**
Unrestricted
**funds**
funds
**general**
general
**2024**
2023
**£**
£
Business forum and book sales
40,417
70,835
**Investments**
**Unrestricted**
Unrestricted
**funds**
funds
**general**
general
**2024**
2023
**£**
£
Interest receivable
65,619
21,745
**Other income**
**Total**
Unrestricted
funds
general
**2024**
2023
**£**
£
Other income
-
259
**Raising funds**
**Unrestricted**
Unrestricted
**funds**
funds
**general**
general
**2024**
2023
**£**
£
Costs of generating voluntary income
Staging fundraising events
16,058
55,957
Other fundraising costs
11,483
19,960
Staff costs
192,109
186,551
219,650
262,468|**Trading income**
**Unrestricted**
Unrestricted
**funds**
funds
**general**
general
**2024**
2023
**£**
£
Business forum and book sales
40,417
70,835
**Investments**
**Unrestricted**
Unrestricted
**funds**
funds
**general**
general
**2024**
2023
**£**
£
Interest receivable
65,619
21,745
**Other income**
**Total**
Unrestricted
funds
general
**2024**
2023
**£**
£
Other income
-
259
**Raising funds**
**Unrestricted**
Unrestricted
**funds**
funds
**general**
general
**2024**
2023
**£**
£
Costs of generating voluntary income
Staging fundraising events
16,058
55,957
Other fundraising costs
11,483
19,960
Staff costs
192,109
186,551
219,650
262,468| |---|---|---| |||262,468| - 19 - ## **POLICY EXCHANGE LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2024**_ ## **9 Research** |Staff costs
Professional fees, research and events
Publications, printing and postage
Travel and subsistence
Website and IT support
Other costs
Share of support costs (see note 10)
Share of governance costs (see note 10)
**Analysis by fund**
Unrestricted funds - general
Restricted funds|**2024**
**£**
1,571,348
1,088,956
14,240
50,511
50
592
2,725,697
982,352
34,469
3,742,518
1,883,151
1,859,367
3,742,518|**2023**
**£**
1,624,228
962,828
10,570
45,509
55
316| |---|---|---| |||2,643,506
904,100
25,119| |||3,572,725| |||1,590,006
1,982,719| |||3,572,725| ## **10 Support costs** |**Support costs**||| |---|---|---| |**Support costs**
**Governance**
**costs**
**£**
**£**
Staff costs
116,621
-
Depreciation
51,215
-
Other costs
427,965
-
Premises
386,551
-
Audit fees
-
18,500
Accountancy
-
15,969
982,352
34,469
Analysed between
Charitable activities
982,352
34,469|**2024**
Support costs
Governance
costs
**£**
£
£
116,621
90,296
-
51,215
55,034
-
427,965
390,640
-
386,551
368,130
-
18,500
-
17,500
15,969
-
7,619
1,016,821
904,100
25,119
1,016,821
904,100
25,119|2023
£
90,296
55,034
390,640
368,130
17,500
7,619| |||929,219| |||929,219| Governance costs include payments to the auditors of £18,500 (2023: £17,500) for audit fees and £15,969 (2023: £7,619) for other services. Included within premises costs is an expense for £298,499 (2023: £288,040) for lease payments. - 20 - ## **POLICY EXCHANGE LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2024**_ ## **11 Trustees** No Trustees received benefits or have been paid any remuneration from the Charity during the year or prior year. ## **12 Employees** The average monthly number of employees during the year was: |Research
Fundraising
Administration/Support
Total
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2024**
**Number**
18
2
5
25
**2024**
**£**
1,598,612
189,117
92,349
1,880,078|**2023**
**Number**
17
2
8| |---|---|---| |||27| |||**2023**
**£**
1,641,052
194,288
65,735| |||1,901,075| The key management personnel of the charity comprises the trustees, the Director, the Managing Director and the Director of Research. The trustees do not receive any remuneration. Remuneration of key management personnel amounted to £340,366 (2023: £301,750) in the year. The number of employees whose annual remuneration was £60,000 or more were: |60,000 - 69,999
70,000-79,999
80,000 - 89,999
90,000 - 99,999
100,000-109,999
110,000 - 119,999
120,000 - 129,999
130,000 - 139,999
150,000 - 179,999|**2024**
**Number**
1
2
2
1
1
-
1
1
1
**10**|**2023**
**Number**
3
-
-
3
-
1
1
-
1| |---|---|---| |||**9**| Contributions totaling £53,739 (2023: £43,288) were made to defined contribution pension schemes on behalf of employees whose emoluments exceed £60,000. - 21 - ## **POLICY EXCHANGE LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2024**_ |**13**
**Tangible fixed assets**
**Short leasehold**
**Computer**
**equipment**
**Fixtures, fittings**
**& equipment**
**£**
**£**
**£**
**Cost**
At 1 October 2023
321,730
94,709
95,712
Additions
-
801
-
At 30 September 2024
321,730
95,510
95,712
**Depreciation and impairment**
At 1 October 2023
61,127
84,256
65,667
Depreciation charged in the year
32,659
7,899
10,657
At 30 September 2024
93,786
92,155
76,324
**Carrying amount**
At 30 September 2024
227,944
3,355
19,388
At 30 September 2023
260,603
10,453
30,045|**Total**
**£**
512,151
801| |---|---| ||512,952| ||211,050
51,215| ||262,265| ||250,687| ||301,101| ## **14 Fixed asset investments** ||**Investment in**| |---|---| ||**subsidiary**| ||**£**| |**Cost or valuation**|| |At 1 October 2023 & 30 September 2024|2| |**Carrying amount**|| |At 30 September 2024|2| |At 30 September 2023|2| ## **15 Subsidiaries** Details of the Charity's subsidiaries at 30 September 2024 are as follows: |**Name of undertaking and country of**|**Name of undertaking and country of**|**Nature of business**|**Class of**|**% Held**|| |---|---|---|---|---|---| |**incorporation or residency**|||**shareholding**|**Direct**|**Indirect**| |Policy Exchange Events|United Kingdom|Conference/administration|Ordinary||| |Limited||services||100.00|-| These financial statements are separate Charity financial statements for Policy Exchange Limited. - 22 - ## **POLICY EXCHANGE LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2024**_ ## **16 Debtors** |**Debtors**||| |---|---|---| |**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income|**2024**
**£**
54,000
153,479
116,824
324,303|**2023**
**£**
122,400
16,354
231,689| |||370,443| ## **17 Creditors: amounts falling due within one year** |Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income|**2024**
**£**
52,525
196,291
1,138
207,417
457,371|**2023**
**£**
67,313
204,270
11,158
467,351| |---|---|---| |||750,092| Total deferred income at the year end amounted to £nil (2023: £228,000). At the start of the year, total deferred income was £228,000 (2023: £86,626). £228,000 was released to income within the year (2023: £86,626). £nil (2023: £228,000) was deferred within the year. This amount represents income for subscriptions, donations and conference income that relate to future accounting periods and will be shown in the next financial year. ## **18 Retirement benefit schemes** ## **Defined contribution schemes** The Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The charge to profit or loss in respect of defined contribution schemes was £93,349 (2023: 64,633). - 23 - ## **POLICY EXCHANGE LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2024**_ ## **19 Restricted funds** The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes: |**Balance at**
**1 October 2022**
**£**
Economics
-
Security and Extremism
-
Education
254,671
Crime and Justice
-
Environment and energy
113,720
Directors
-
Immigration, Integration and Demography
78,821
Health and Social Policy
-
Foreign Policy
-
447,212|**Movement in funds**
**Incoming**
**resources**
**Resources**
**expended**
**Balance at**
**1 October 2023**
**£**
**£**
**£**
358,500
(358,500)
-
316,975
(316,975)
-
90,000
(161,426)
183,245
-
-
-
20,000
(133,720)
-
581,500
(566,416)
15,084
20,000
(26,432)
72,389
69,000
(69,000)
-
350,250
(350,250)
-
1,806,225
(1,982,719)
270,718|**Movement in funds**
**Incoming**
**resources**
**Resources**
**expended**
**Balance at**
**30 September**
**2024**
**£**
**£**
**£**
265,000
(265,000)
-
893,750
(600,247)
293,503
52,500
(90,577)
145,168
150,000
(136,224)
13,776
50,000
(50,000)
-
352,875
(367,959)
-
-
(4,360)
68,029
20,000
(20,000)
-
325,000
(325,000)
-
2,109,125
(1,859,367)
520,476|**Movement in funds**
**Incoming**
**resources**
**Resources**
**expended**
**Balance at**
**30 September**
**2024**
**£**
**£**
**£**
265,000
(265,000)
-
893,750
(600,247)
293,503
52,500
(90,577)
145,168
150,000
(136,224)
13,776
50,000
(50,000)
-
352,875
(367,959)
-
-
(4,360)
68,029
20,000
(20,000)
-
325,000
(325,000)
-
2,109,125
(1,859,367)
520,476| |---|---|---|---| ||||520,476| Restricted funds relate to research projects undertaken with regard to all public policy areas. A typical research project will include detailed research, a written report or note, and related event(s). - 24 - ## **POLICY EXCHANGE LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2024**_ ## **20 Designated funds** The income funds of the charity include designated funds comprising the following unexpended balances held for specific purposes: ||||**Movement in**||**Movement in**|| |---|---|---|---|---|---|---| ||||**funds**||**funds**|| |||**Balance at**|**Incoming**|**Balance at**|**Incoming**|**Balance at**| ||**1**|**October 2022**|**resources**|**1 October 2023**|**resources**|**30 September**| |||||||**2024**| |||**£**|**£**|**£**|**£**|**£**| |Core maintenance||100,000|-|100,000|-|100,000| |||100,000|-|100,000|-|100,000| Core funds are to be used in relation to core projects including premises expenses and website and IT upgrades. - 25 - ## **POLICY EXCHANGE LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 30 SEPTEMBER 2024**_ ## **21 Analysis of net assets between funds** |**Analysis of net assets between funds**||||| |---|---|---|---|---| |**Unrestricted**
**funds**
**Designated**
**funds**
**2024**
**2024**
**£**
**£**
Fund balances at 30 September 2024 are represented by:
Tangible assets
250,687
-
Investments
2
-
Current assets/(liabilities)
2,038,383
100,000
2,289,072
100,000|**Restricted**
**funds**
**2024**
**£**
-
-
520,476
520,476|**Total**
Unrestricted
funds
Designated
funds
**2024**
2023
2023
**£**
£
£
250,687
301,101
-
2
2
-
2,658,859
1,883,364
100,000
2,909,548
2,184,467
100,000|Restricted
funds
2023
£
-
-
270,718
270,718|Total
2023
£
301,101
2
2,254,082| |||||2,555,185| - 26 - ## **POLICY EXCHANGE LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2024**_ ## **22 Operating lease commitments** At the reporting end date the Charity had outstanding commitments for future minimum lease payments under a noncancellable operating lease, which fall due as follows: |Within one year
Between two and five years
In over five years|**2024**
**£**
278,375
1,391,875
301,255
1,971,505|**2023**
**£**
278,375
1,391,875
580,393| |---|---|---| |||2,250,643| ## **23 Related party transactions** The total donations recognised as income in the year from the charity's trustees and related parties amounted to £1,071,250 (2023: £1,297,750). |**24**
**Cash generated from operations**
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease/(increase) in debtors
(Decrease)/increase in creditors
**Cash generated from operations**
25
**Analysis of changes in net funds**
The Charity had no debt during the year.|**2024**
**£**
354,363
(65,619)
51,215
46,140
(292,721)
93,378|**2023**
**£**
186,144
(21,745)
55,034
(41,408)
93,850| |---|---|---| |||271,875| |||| - 27 - ## **Issuer** HW Fisher **Document generated** Wed, 25th Jun 2025 18:22:10 BST **Document fingerprint** f11249a5ae075d4fe510ee0b1ce50560 ## **Parties involved with this document** ## **Document processed** ## **Party + Fingerprint** Thu, 26th Jun 2025 12:09:18 BST William Salomon - Signer (b27531e4c9fcd6dfed21678c2e1c77b3) Thu, 26th Jun 2025 12:44:26 BST Russell Nathan - Signer (d32305aefbcb8164623cb061d259d6db) **Audit history log Date Action** Wed, 25th Jun 2025 18:22:10 BST Envelope generated by Stephen Best (89.150.28.98) Wed, 25th Jun 2025 18:22:11 BST Document generated with fingerprint c451c834810d02e2c2b623f7b89a76d7 (89.150.28.98) Wed, 25th Jun 2025 18:22:12 BST Document generated with fingerprint dad597eafe6975c50afaddac70f9c6ea (89.150.28.98) Wed, 25th Jun 2025 18:22:12 BST Document generated with fingerprint 0b12df1111197d2ad73e499a106d7cfe (89.150.28.98) Thu, 26th Jun 2025 11:59:55 BST Document generated with fingerprint f11249a5ae075d4fe510ee0b1ce50560 (89.150.28.98) Thu, 26th Jun 2025 12:01:56 BST Sent the envelope to William Salomon (WSalomon@hansacap.com) for signing (89.150.28.98) Thu, 26th Jun 2025 12:01:56 BST Document emailed to WSalomon@hansacap.com Thu, 26th Jun 2025 12:07:12 BST William Salomon opened the document email. (148.252.128.190) Thu, 26th Jun 2025 12:07:12 BST William Salomon opened the document email. (148.252.128.190) Thu, 26th Jun 2025 12:07:48 BST William Salomon opened the document email. (148.252.128.190) Thu, 26th Jun 2025 12:07:55 BST William Salomon viewed the envelope (148.252.128.190) Thu, 26th Jun 2025 12:09:18 BST William Salomon signed the envelope (148.252.128.190) Thu, 26th Jun 2025 12:09:18 BST Sent the envelope to Russell Nathan (rnathan@hwfisher.co.uk) for signing (148.252.128.190) Thu, 26th Jun 2025 12:09:19 BST Document emailed to rnathan@hwfisher.co.uk Thu, 26th Jun 2025 12:43:54 BST Russell Nathan opened the document email. (31.94.64.21) Thu, 26th Jun 2025 12:43:54 BST Russell Nathan opened the document email. (31.94.64.21) Thu, 26th Jun 2025 12:43:58 BST Russell Nathan viewed the envelope (31.94.64.21) Thu, 26th Jun 2025 12:44:26 BST Russell Nathan signed the envelope (31.94.64.21) Thu, 26th Jun 2025 12:44:26 BST This envelope has been signed by all parties (31.94.64.21)