2025-09-30-accounts

Company registration number 04297905 (England and Wales)

Charity registration number 1096300 (England and Wales)

POLICY EXCHANGE LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

POLICY EXCHANGE LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Karan Bilimoria Alexander Downer Andrew Feldman David Harding Patricia Hodgson Greta Jones David Ord Daniel Posen Andrew Roberts William Salomon Simon Wolfson 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 - 6
Statement of Trustees' responsibilities	7
Independent auditor's report	8 - 10
Statement of financial activities	11 - 12
Balance sheet	13
Statement of cash flows	14
Notes to the financial statements	15 - 26

POLICY EXCHANGE LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 SEPTEMBER 2025

The Trustees present their report and financial statements for the year ended 30 September 2025.

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

The year under review was a productive period for Policy Exchange, marked by the publication of 65 reports and the hosting of 30 events featuring speakers from across the globe, including the United States, France and Canada, among others.

Policy Exchange maintained a clear presence across domestic and international policy debates, with a number of its publications directly shaping political and parliamentary discussion. Our work on constitutional and legal issues included reports on the European Convention on Human Rights, the proposed agreement on the Chagos Islands, and the operation of international law, all of which contributed to sustained scrutiny of Government policy and were referenced in media coverage and parliamentary debate. Research on the International Criminal Court, the Human Rights Act and the Law Officers’ Convention further informed discussion among parliamentarians, journalists and legal practitioners.

Across domestic policy, our research had a measurable impact. In health, Just About Managing: The Role of Effective Management and Leadership in Improving NHS Performance and Productivity was reflected in reforms announced by the Secretary of State for Health and Social Care, while Not Fit for Purpose: An Appraisal of the ‘Fit Note’ and Assessments of Fitness for Work was cited eight times by the House of Lords Economic Affairs Committee in correspondence with the Department for Work and Pensions. Our welfare report, For Whose Benefit? backed by former Secretary of State for Work and Pensions, Rt Hon Lord [David] Blunkett, set out proposals for reform to health and disability benefits which were reflected in subsequent Government announcements. In economic policy, Driving Growth: The Case for Road Pricing in the UK and Rise of the Regulators contributed to debate on growth and regulatory reform. Other outputs, including The Costs of Crime – And How to Reduce Them and work on Non-Crime Hate Incidents, informed discussion on policing and criminal justice, including in broadcast and print media.

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POLICY EXCHANGE LIMITED

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 30 SEPTEMBER 2025

We continued to convene senior policymakers and opinion formers through a programme of cross-party public events and private roundtables. Speakers included the Chancellor of the Duchy of Lancaster, Rt Hon Pat McFadden MP; the Leader of the Opposition, Rt Hon Kemi Badenoch MP; Editor of the New Statesman, Tom McTague; Shadow Attorney General, Lord Wolfson of Tredegar KC; and French Interior Minister, Bruno Retailleau.

Our flagship programmes continued to deliver substantive outputs. The Future of the Left and The Future of the Right held numerous events and policy briefings, analysing of why successive Governments with large majorities have struggled to implement their policy programmes, and contributing to the national debate as to why our political landscape is fragmenting – and what policy issues both right and left are struggling to handle. The portrait of Modern Britain series published reports on ethnicity, religion and health, including findings on national identity and public priorities for the NHS, which received national media coverage. The Policy Programme for Prosperity published reports on road pricing, regulation and the costs of crime. During the period, we also launched the Policy Exchange Nuclear Enterprise Commission, bringing together a cross party and international group of experts from politics, industry and academia to examine the civil and defence nuclear ecosystem.

Our events programme featured a number of standout occasions over the past year. These included our Winter Reception, attended by more than 400 guests and featuring a keynote address from the Rt Hon Pat McFadden MP in his capacity as Chancellor of the Duchy of Lancaster and the Minister overseeing the Government’s five missions.

Policy Exchange also hosted the Shadow Attorney General, Lord Wolfson of Tredegar KC, for a lecture entitled The Rule of Law: at home, abroad – and in Westminster. Lord Wolfson delivered an authoritative and wide-ranging address covering the rule of law, international law, and the role of the Attorney General within Government.

We were also honoured to welcome Bruno Retailleau, French Minister of the Interior and Minister of State, to deliver the 2025 Colin Cramphorn Memorial Lecture. In a speech entitled The Islamist challenge: how should free societies now respond?, he reflected on the shared challenges Britain and France face from Islamism and argued for rejecting narratives of self-loathing about our national histories.

As part of the Thatcher Centenary Programme at Policy Exchange, the Rt Hon Kemi Badenoch, Leader of HM Opposition and Leader of the Conservative Party, took part in an In Conversation event with Lord Moore of Etchingham, authorised biographer of Margaret Thatcher.

Another key event featured an In Conversation discussion between Senator James E. Risch, Chairman of the U.S. Senate Foreign Relations Committee, and Lord Godson. Senator Risch spoke on a range of major geopolitical issues, including Vladimir Putin’s aggression “creating the largest security crisis Europe has seen in over 70 years”, the need for substantive policy change to “counter the authoritarian axis that seeks to undermine American and European security”, and questions relating to the future of the Chagos Islands.

Taken together, these activities demonstrate Policy Exchange’s continued ability to produce research and convene events that inform parliamentary debate, contribute to policy development and support engagement across Government, Parliament, industry and academia alike.

Parliamentary Engagement

Over this period, Policy Exchange’s work has continued to resonate with all main parties and across both Houses of Parliament. In practical terms, the charity’s research has been cited by Parliamentarians from across the political spectrum 92 times between October 2024 and September 2025.

This is in addition to 17 submissions of Oral and Written Evidence by Policy Exchange’s subject experts to a breadth of Select Committees of both Houses of Parliament. Committee appearances across this period include sessions with the Defence Committee; Economic Affairs Committee; Northern Ireland Scrutiny Committee; Built Environment Committee; International Relations and Defence Committee; Constitution Committee; and the Work and Pensions Committee.

Our work has been quoted from the Despatch Box by Ministers and Shadow Ministers. This has included Foreign Office Minister, Baroness Chapman of Darlington; the Leader of the Opposition, Rt Hon Kemi Badenoch MP; Minister of State for Transport, Lord Hendy of Richmond Hill; Shadow Attorney General, Lord Wolfson of Tredegar KC; Shadow Chancellor of the Duchy of Lancaster and Shadow Secretary of State for Northern Ireland, Alex Burghart 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 29 times during this period.

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POLICY EXCHANGE LIMITED

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 30 SEPTEMBER 2025

Our research was also endorsed by leading cross party and international figures, including the 22nd Prime Minister of Canada, Rt Hon Stephen Harper PC; former First Sea Lord, Admiral Lord West of Spithead GCB DSC PC; former Cabinet Minister, Rt Hon Sir Sajid Javid; former Foreign Secretary, Rt Hon Lord Hague of Richmond; Chair of the Welsh Affairs Committee, Ruth Jones MP; and former Cabinet Minister, Rt Hon Ruth Kelly to name a few.

Media and Digital Outreach

Policy Exchange has continued to strengthen its media presence over the past year, securing extensive and influential coverage across print, broadcast and digital platforms. Its research consistently shaped the national conversation on major policy issues, with reports achieving front page prominence and attracting supportive leader columns in leading titles including The Sunday Telegraph, The Times, The Daily Telegraph, The Sun and the Daily Mail.

Flagship publications such as A Portrait of Modern Britain series, work on assisted suicide, extremism, crime and national security, and analysis of the Chagos Islands and Northern Ireland legacy issues generated widespread coverage across major outlets, including the BBC, Financial Times, The Guardian, The Independent, The Sun, Politico London Playbook and others.

Several interventions dominated the news agenda for sustained periods, notably reports on extremism policy, legacy legislation and welfare reform, which were covered across virtually every national broadcaster and newspaper. Policy Exchange experts were regularly featured as commentators, with appearances on the BBC News at Six, Sky News, LBC, GB News and Times Radio, alongside a strong pipeline of op-eds in outlets such as The Telegraph, The Spectator, The Daily Telegraph and CityAM. International reach was also evident, with coverage extending to outlets such as The Times of India.

Across social media, Policy Exchange has continued to strengthen its position as one of the most influential think tanks shaping the online policy debate. In particular, the organisation’s presence on X (formerly Twitter) remained highly impactful, with the @Policy_Exchange account generating more than one million impressions over the course of the year. Among the most prominent moments was Policy Exchange’s post confirming the violent attack on its offices by the group ‘Shut the System’, which attracted more than 150,000 impressions and prompted messages of support and reposts from senior figures across Westminster. Another significant highlight followed the visit of Hon Michael R Pompeo to Policy Exchange in September 2025, when a thread documenting his appearance was quote-posted by the 70th United States Secretary of State himself, who commented: “Always a pleasure to join @Policy_Exchange” — further amplifying the organisation’s reach to an international audience and achieving over 43,000 views.

Policy Exchange’s website also continued to attract substantial engagement throughout the year. It recorded more than 822,000 page views, alongside over 50,000 report downloads, including more than 404,000 first-time users. The website also experienced significant spikes in traffic around major political and economic developments. In particular, on 4 July 2025, readership surged following publication of Policy Exchange analysis examining the market instability that unfolded after the Chancellor’s upset in the House of Commons. The piece, titled ‘ What next for the economy’ , received over 9,500 views in a single day, demonstrating Policy Exchange’s ability to provide timely commentary at moments of national significance.

Policy Impact

Policy Exchange has continued to deliver measurable policy impact across a range of areas.

In health and social care, a series of longstanding recommendations on NHS reform and management have gained traction, culminating in policy announcements aligned with our work, namely the abolition of NHS England - an outcome first advocated in multiple Policy Exchange reports. This influence was reinforced by the adoption of more than 20 recommendations from our Health and Social Care Unit in the Government’s 10 Year Health Plan.

Our work on welfare reform has also had an impact. Proposals set out in For Whose Benefit? were reflected in Government policy, including changes to eligibility, assessment processes and support mechanisms, while the broader fiscal narrative around welfare reform echoed the report’s central arguments.

In crime and justice, Policy Exchange has secured a series of policy wins. Recommendations from our Crime and Justice Unit have been incorporated into the Government’s flagship Crime and Policing Bill, while our work on sentencing and accountability informed plans to legislate for greater ministerial oversight of the Sentencing Council. Our research has also driven real world operational change, including the rapid deployment of Live Facial Recognition technology by the Metropolitan Police, and the scrapping of non-crime hate incidents. Earlier work on prison reform has been reflected in the Gauke Sentencing Review, including measures on early release, women’s centres and foreign national offenders.

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POLICY EXCHANGE LIMITED

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 30 SEPTEMBER 2025

Policy Exchange has also played a role in shaping debate and outcomes on constitutional and national security issues. Our analysis of extremism policy prompted the Government to reject elements of its own review, while sustained work on Northern Ireland legacy issues continues to place pressure on Ministers.

Across education and technology, our research has driven parliamentary scrutiny and policy development, with our work contributing to a Government review of smartphone use in schools.

Taken together, these outcomes reflect Policy Exchange’s ability not only to shape debate, but to translate ideas into policy change.

Future Plans

Following a successful year, Policy Exchange will seek to broaden and deepen its impact through rigorous, evidence-driven research and by strengthening relationships with a wide range of influential figures in the UK and internationally.

Our flagship programmes - The Future of the Left and The Future of the Right - will continue to examine, respectively, the challenges of governing from the left and the policy direction of a right seeking to renew itself.

Policy Exchange’s Nuclear Enterprise Commission (PXNEC), chaired by the Rt Hon Lord Case CVO, has now moved into full operational mode and is expected to deliver its final report in the coming months.

The PXNEC brings together Commissioners from across the nuclear ecosystem, including former NATO Secretary General Rt Hon Lord Robertson of Port Ellen KT GCMG; former US National Security Advisor Lt Gen H.R. McMaster (USA, Ret.); CEO of the Nuclear Industry Association, Tom Greatrex; Professor Dame Fiona Murray DBMG CBE, Associate Dean for Innovation at the MIT Sloan School of Management and Vice-Chair of the Board of Directors of the NATO Innovation Fund; Frank Miller, former Special Advisor on nuclear matters to President George W. Bush and nuclear defence specialist at the U.S. Department of Defense; and Dr Won-Pil Baek, Senior Research Fellow at Korea Atomic Energy Research Institute, amongst others.

The Judicial Power Project will maintain its sustained focus on the rule of law, including its workstream on human rights law. This will sit alongside our ongoing work across global security and defence, public services, crime and justice, and our continued emphasis on driving economic growth and productivity.

The 3 year Policy Programme for Prosperity will also continue at pace as it enters its final year, with work on taxation reform and regulation in the months ahead.

Supporting this programme of work will be an expanded external events series, bringing together high-profile and influential speakers from across the political spectrum, both in the UK and internationally.

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 on going 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 £117,900 £2023/24: £354,363) on income of £3,939,392 (2023/24: £4,316,531). Costs decreased to £3,821,492 compared with £3,962,168 the previous year, chiefly reflecting lower overall salary costs.

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POLICY EXCHANGE LIMITED

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 SEPTEMBER 2025

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 2025 stood at £3,027,448 (2023/24: £2,909,548) of which £365,089 (2023/24: £520,476) were 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 £2,562,359 unrestricted reserves at 30 September 2025 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 has any beneficial interest in the Company. 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 Ltd and its trading subsidiary Policy Exchange Events Ltd (formerly The Ideas Space Ltd).

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

Alexander Downer Andrew Feldman David Harding Patricia Hodgson Greta Jones Andrew Law (Retired 22/04/2025) Charlotte Metcalf (Retired 05/06/2025) David Ord Daniel Posen Andrew Roberts William Salomon Salma Shah (Appointed 30/01/2025) Simon Wolfson Nigel Wright (Retired 29/09/2025)

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.

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POLICY EXCHANGE LIMITED

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 SEPTEMBER 2025

Risk Management

The Risk and Remuneration Committee identified three 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.

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

W Salomon

……………………..

William Salomon

Trustee

Dated: 29 Jun 2026

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POLICY EXCHANGE LIMITED

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 30 SEPTEMBER 2025

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;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 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.

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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 2025 which comprise the Statement of Financial Activities, 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 2025 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.

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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.

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.

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

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POLICY EXCHANGE LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE MEMBERS OF POLICY EXCHANGE LIMITED

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 auditor’s 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

.........................29 Jun 2026

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POLICY EXCHANGE LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 30 SEPTEMBER 2025

Current financial year Unrestricted Unrestricted funds funds general designated 2025 2025 Notes £ £ Income and endowments from: Donations, gifts and grants 2 1,992,320 - Incoming resources from charitable activities 5 35,000 - Trading income 4 6,667 - Investments 6 43,950 - Other income 7 910 - Total income 2,078,847 - Expenditure on: Raising funds 8 268,742 - Research 9 1,536,818 - Total resources expended 1,805,560 - Net income/(expenditure) for the year/ Net movement in funds 273,287 - Fund balances at 1 October 2024 2,289,072 100,000 Fund balances at 30 September 2025 2,562,359 100,000	Restricted funds 2025 £ 1,860,545 - - - - 1,860,545 - 2,015,932 2,015,932 (155,387) 520,476 365,089	Total 2025 £ 3,852,865 35,000 6,667 43,950 910 3,939,392 268,742 3,552,750 3,821,492 117,900 2,909,548 3,027,448	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

The statement of financial activities includes all gains and losses recognised in the year. 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.

• 11 -

POLICY EXCHANGE LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 30 SEPTEMBER 2025

Prior financial year

Unrestricted Unrestricted funds funds general designated 2024 2024 Notes £ £ Income and endowments from: Donations, gifts and grants 2 1,733,370 - Incoming resources from charitable activities 5 368,000 - Trading income 4 40,417 - Investments 6 65,619 - 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/(expenditure) 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

The statement of financial activities includes all gains and losses recognised in the year. 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

BALANCE SHEET

AS AT 30 SEPTEMBER 2025

Notes Fixed assets Tangible assets 15 Investments 16 Current assets Debtors 17 Cash at bank and in hand Creditors: amounts falling due within one year 19 Net current assets Total assets less current liabilities The funds of the Charity Restricted income funds 21 Unrestricted funds - general Unrestricted funds - designated 23	2025 £ 166,754 3,015,735 3,182,489 (360,821)	£ 205,778 2 205,780 2,821,668 3,027,448 365,089 2,562,359 100,000 3,027,448	2024 £ 324,303 2,791,927 3,116,230 (457,371)	£ 250,687 2
				250,689 2,658,859
				2,909,548
				520,476 2,289,072 100,000
				2,909,548

The financial statements were approved by the Trustees on .........................29 Jun 2026

W Salomon .............................. William Salomon Trustee

Company registration number 04297905 (England and Wales)

• 13 -

POLICY EXCHANGE LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

Notes Cash flows from operating activities Cash generated from operations 26 Investing activities Purchase of tangible fixed assets Investment income received Net cash generated from investing activities Net cash generated from 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	2025 £ (395) 43,950	£ 180,253 43,555 - 223,808 2,791,927 3,015,735	2024 £ (801) 65,619	£ 93,378 64,818 -
				158,196 2,633,731
				2,791,927

• 14 -

POLICY EXCHANGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

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.

• 15 -

POLICY EXCHANGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

1 Accounting policies

(Continued)

1.5 Resources expended

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

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 the statement of financial activities.

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.

• 16 -

POLICY EXCHANGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

1 Accounting policies

(Continued)

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.

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 Income from donations and legacies

	Unrestricted	Restricted	Total	Unrestricted	Restricted	Total
	funds	funds		funds	funds
	2025	2025	2025	2024	2024	2024
	£	£	£	£	£	£
Donations and gifts	1,992,320	1,860,545	3,852,865	1,733,370	2,109,125	3,842,495

3 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.

• 17 -

POLICY EXCHANGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

4 Income from other trading activities

		Unrestricted	Unrestricted
		funds	funds
		2025	2024
		£	£
	Business forum and book sales	6,667	40,417
5	Income from charitable activities
		Unrestricted	Unrestricted
		funds	funds
		2025	2024
		£	£
	Corporate events	35,000	368,000
6	Income from investments
		Unrestricted	Unrestricted
		funds	funds
		2025	2024
		£	£
	Interest receivable	43,950	65,619
7	Other income
		Unrestricted	Unrestricted
		funds	funds
		2025	2024
		£	£
	Other income	910	-

• 18 -

POLICY EXCHANGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

8 Raising funds

	Unrestricted	Unrestricted
	funds	funds
	general	general
	2025	2024
	£	£
Costs of generating voluntary income
Staging fundraising events	59,386	16,058
Other fundraising costs	23,891	11,483
Staff costs	185,465	192,109
	268,742	219,650

9 Research

Direct costs Staff costs Professional fees, research and events Publications, printing and postage Travel and subsistence Other costs Share of support and governance costs (see note 10) Support Governance Analysis by fund Unrestricted funds - general Restricted funds	Charitable activities 2025 £ 1,406,929 1,221,519 11,029 113,271 4,510 2,757,258 768,130 27,362 3,552,750 1,536,818 2,015,932 3,552,750	Charitable activities 2024 £ 1,571,348 1,088,956 14,240 50,511 642
		2,725,697 982,352 34,469
		3,742,518
		1,883,151 1,859,367
		3,742,518

• 19 -

POLICY EXCHANGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

10 Support costs allocated to activities

Staff costs Depreciation Other costs Premises Governance costs Analysed between: Charitable activities Governance costs comprise: Audit fees Accountancy	2025 £ 121,317 45,304 179,623 421,886 27,362 795,492 795,492 2025 £ 18,785 8,577 27,362	2024 £ 116,621 51,215 427,965 386,551 34,469
		1,016,821
		1,016,821
		2024 £ 18,500 15,969
		34,469

Governance costs include payments to the auditors of £18,785 (2024: £18,500) for audit fees and £8,577 (2024: £15,969) for other services. Included within premises costs is an expense for £321,966 (2024: £2298,499) for lease payments.

11	Net movement in funds	2025	2024
		£	£
	The net movement in funds is stated after charging/(crediting):
	Fees payable for the audit of the charity's financial statements	18,785	18,500
	Depreciation of owned tangible fixed assets	45,304	51,215

12 Trustees

No Trustees received benefits or have been paid any remuneration from the Charity during the year or prior year.

• 20 -

POLICY EXCHANGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

13 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	2025 Number 14 2 5 21 2025 £ 1,407,912 180,379 125,420 1,713,711	2024 Number 18 2 5
		25
		2024 £ 1,598,612 189,117 92,349
		1,880,078

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 £370,762 (2024: £340,366) 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 - 139,999 140,000 - 149,999 150,000 - 159,999 180,000-189,999	2025 Number - 1 3 - - 1 1 - 1 - 1 8	2024 Number 1 2 2 1 1 - 1 1 - 1 -
		10

Contributions totaling £57,906 (2024: £53,739 ) were made to defined contribution pension schemes on behalf of employees whose emoluments exceed £60,000.

14 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

• 21 -

POLICY EXCHANGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

15	Tangible fixed assets
		Short leasehold	Computer	Fixtures, fittings	Total
			equipment	& equipment
		£	£	£	£
	Cost
	At 1 October 2024	321,730	95,510	95,712	512,952
	Additions	-	-	395	395
	At 30 September 2025	321,730	95,510	96,107	513,347
	Depreciation and impairment
	At 1 October 2024	93,786	92,155	76,324	262,265
	Depreciation charged in the year	32,659	2,302	10,343	45,304
	At 30 September 2025	126,445	94,457	86,667	307,569
	Carrying amount
	At 30 September 2025	195,285	1,053	9,440	205,778
	At 30 September 2024	227,944	3,355	19,388	250,687
16	Fixed asset investments
					Investment in
					subsidiary
					£
	Cost or valuation
	At 1 October 2024 & 30 September 2025				2
	Carrying amount
	At 30 September 2025				2
	At 30 September 2024				2
17	Debtors
				2025	2024
	Amounts falling due within one year:			£	£
	Trade debtors			54,000	54,000
	Other debtors			11,773	153,479
	Prepayments and accrued income			100,981	116,824
				166,754	324,303

• 22 -

POLICY EXCHANGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

18 Subsidiaries

Details of the Charity's subsidiaries at 30 September 2025 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.

19 Creditors: amounts falling due within one year

Other taxation and social security Trade creditors Other creditors Accruals and deferred income	2025 £ 48,484 132,243 4,860 175,234 360,821	2024 £ 52,525 196,291 1,138 207,417
		457,371

20 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 £125,420 (2024: £92,349).

• 23 -

POLICY EXCHANGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2025

21 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 2023 £ Economics - Security and Extremism - Education 183,245 Crime and Justice - Environment and energy - Directors 15,084 Immigration, Integration and Demography 72,389 Health and Social Policy - Foreign Policy - 270,718	Movement in funds Incoming resources Resources expended Balance at 1 October 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 2025 £ £ £ 250,000 (250,000) - 600,000 (629,931) 263,572 23,000 (101,185) 66,983 75,000 (88,776) - - - - 666,810 (666,810) - - (33,495) 34,534 - - - 245,735 (245,735) - 1,860,545 (2,015,932) 365,089	Movement in funds Incoming resources Resources expended Balance at 30 September 2025 £ £ £ 250,000 (250,000) - 600,000 (629,931) 263,572 23,000 (101,185) 66,983 75,000 (88,776) - - - - 666,810 (666,810) - - (33,495) 34,534 - - - 245,735 (245,735) - 1,860,545 (2,015,932) 365,089
			365,089

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 2025

22 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 2023	resources	1 October 2024	resources	30 September
						2025
		£	£	£	£	£
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.

23 Analysis of net assets between funds

Unrestricted Unrestricted funds funds general designated 2025 2025 £ £ At 30 September 2025: Tangible assets 205,778 - Investments 2 - Current assets/(liabilities) 2,356,579 100,000 2,562,359 100,000 Unrestricted Unrestricted funds funds general designated 2024 2024 £ £ At 30 September 2024: Tangible assets 250,687 - Investments 2 - Current assets/(liabilities) 2,038,383 100,000 2,289,072 100,000	Restricted funds 2025 £ - - 365,089 365,089 Restricted funds 2024 £ - - 520,476 520,476	Total 2025 £ 205,778 2 2,821,668
		3,027,448
		Total 2024 £ 250,687 2 2,658,859
		2,909,548

• 25 -

POLICY EXCHANGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

24 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	2025 £ 278,375 1,391,875 22,880 1,693,130	2024 £ 278,375 1,391,875 301,255
		1,971,505

25 Related party transactions

The total donations recognised as income in the year from the charity's trustees and related parties amounted to £1,179,500 (2024: £1,071,250).

26 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 in debtors (Decrease) in creditors Cash generated from operations	2025 £ 117,900 (43,950) 45,304 157,549 (96,550) 180,253	2024 £ 354,363 (65,619) 51,215 46,140 (292,721)
		93,378

27 Analysis of changes in net funds

The Charity had no material debt during the year.

• 26 -

Issuer

HW Fisher

Document generated Fri, 26th Jun 2026 18:54:23 BST

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Parties involved with this document

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