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2024-03-31-accounts

Report and Financial Statements Registered number: 341010 Charity number: 306083 31 March 2024

Contents

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Reference and administrative information 1
Trustees annual report 2
Trustees responsibilities 15
Independent auditor's report 1
Statement of financial activities 2
Balance sheet 2
Statement of cash flows 2
Notes to the Financial Statements 2
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REFERENCE AND ADMINISTRATIVE INFORMATION

Trustees (Members of the Council of Management)

Sir Philip Rutnam (Chair Appointed 8[th] July 2024) Professor Nicholas Crafts (Died October 2023) Sir Paul Tucker (President) Jenny Bates Alexander Baker Professor Phillip Brown Neville Manuel (Resigned 21 September 2023) Neil Gaskell Stephen Daryl King Professor Jill Rubery Romesh Vaitilingam Kofi Adjepong-Boateng Peter Oppenheimer Alison Straszewski (Appointed 21 September 2023) Amanda Rowlatt (Appointed 29 June 2023) Keith Wade (Appointed 29 June 2023)

Key Management Personnel

Professor Jagjit Chadha (Director) Stephen Millard (Deputy Director Macroeconomic Modelling & Forecasting) Adrian Pabst (Deputy Director, Social and Political Economy) Yetunde Aroloye (Chief Financial Officer) Neil Lakeland (Head of External Affairs)

Registered Office & Principal Place of Business

2 Dean Trench Street, Smith Square, London, SW1P 3HE

Company Number: 341010 incorporated in the United Kingdom

Charity Number : 306083 registered in England and Wales

Auditor

Sayer Vincent LLP, 110 Golden Lane, London, EC1Y 0TG

Bankers

Bank of Scotland, 600 Gorgie Road, Edinburgh, EH11 3XP

Solicitors

Pannone & Partners, 123 Deansgate, Manchester, M3 2BU

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The Trustees, who are also directors of the Charity, are pleased to present their annual Trustees’ report together with the financial statements of the charity for the year ended 31 March 2024 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements have been prepared in accordance with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, 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).

OBJECT AND ACTIVITIES

The principal object contained within the National Institute of Economic and Social Research Memorandum and Articles of Association is:

‘T he advancement of education in the social sciences particularly by the propagation of knowledge of the social and economic conditions of contemporary .

We carry out high quality economic and social research of relevance to policymakers and business, meeting this object via four main activities:

The Institute carries out these activities by:

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CORE VALUES

We have integrity .

We are independent and our work is impartial. We challenge accepted paradigms and produce impactful and meaningful research to help people understand the issues which affect them. We want our work to shape policy and practice in ways that improve

This means that we:

We are transparent.

We contribute to the national and international conversation and strive to make our work and ideas open to all. We are open to new questions, ideas, and approaches, and we seek out opportunities to explore and understand. We prioritise ensuring that our research is accessible and impactful across sectors and communities. We promote and welcome comments and constructive challenge as a way of improving and growing.

This means we:

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We are respectful .

We treat all with dignity. We recognise and value different skills, knowledge, and experience, and we draw on this diversity to improve the quality of our work and its impact with our stakeholders. We recognise and acknowledge the challenges faced by others and accordingly provide support. We know that behind the analysis and numbers there are people who deserve respect.

This means that we:

PUBLIC BENEFIT

The T rustees on public benefit future activities.

The activities described above enable the Institute to improve the wider knowledge and understanding of issues which are of importance to the UK and internationally, with the aim of improving social and economic welfare. This was the purpose of the Institute’s foundation over eighty years ago and remains central to its ethos today.

To serve the public benefit we maintain a high reputation for the independence and quality of our research, and invest in several outreach activities, including working with other organisations in the charitable and educational sectors. We have sought to bring our work to new, non-academic audience, including the establishment of a new Business Conditions Forum and the development of a new, extensive Economic Outlook publication for the UK .

FUNDRAISING

NIESR has not hitherto engaged in public fundraising and does not use professional fundraisers or commercial participators. During the year there were no complaints relating to fundraising practice.

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ACHIEVEMENTS & PERFORMANCE

Overview

Our research

vision and strategy, publishing our results in both academic and policy outlets and ensuring that the results are disseminated in such a way as to maximise our impact on policy. Highlights include the paper by Stephen Millard, Margarita Rubio (University of Nottingham ) and Alex Varadi (Bank of England) on ‘The macroprudential toolkit: Effectiveness and interactions’ published in the Oxford Bulletin of Economics and Statistics and the paper by Arnab Bhattacharjee, Geoffrey Hewings (University of Illinois), Adrian Pabst and Tibor Szendrei on ‘NiReMS: A regional model at household level combining spatial econometrics with dynamic microsimulation’ published in Spatial Econom ic Analysis. We convened Special Sessions at the 2023 and 2024 Royal Economic Society conferences on ‘Coordinating monetary, fiscal and financial interventions’ and ‘Understanding distributional shocks and household-level inequalities across the UK: Evidence and

Analysis’, ‘Migration and integration’, ‘Education and skills’ and ‘ Macroeconomics of Climate Change’. As a founding member of the ESRC -funded Productivity Institute we have focused on investment and regional disparities and contributed to their annual conferences and a special session on regional monetary policy. NIESR researchers presented this work at a variety of conferences, including the EUROFRAME Annual Conference in Paris, the Money, Macro and Finance Society Annual Conference in Portsmouth, which we co-organised and conferences at Harvard University and the University of Southern California, among others .

The Productivity Commission

The UK Productivity Commission, established and hosted by NIESR together with the Productivity Institute, was set up to examine the United Kingdom’s productivity performance and provide policy solutions to address the shortfall. Over the past year, the Commission has held three evidence sessions with leading experts and policymakers and taken evidence on the role of public investment in growth and the role of international investment. In addition, the Commission published a paper, written by Paul Fisher, on ‘Productivity and investment: Time to manage the project of renewal’, which generated media traction, including citations in the Sunday Times ~~.~~ Our work on the need for public investment has had considerable policy traction.

UK and Global Economic Analysis

We remain committed to producing our flagship quarterly forecasts for both the UK and the Global Economy, together with commentary exploring our views on their

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current state, how we see them evolving, the implications for monetary and fiscal policy, and an assessment of counterfactual policy options including at regional and household levels. Each quarter, our UK and Global Economic Outlooks are disseminated to the media, economists and the wider public. We also produce monthly ‘Trackers’ for GDP, wage inflation and CPI inflation and a quarterly term premium Tracker. These Trackers involve nowcasting the relevant variables and, in the case of GDP and wage inflation, providing short-term forecasts. We have been asked on a few occasions to comment on data releases in media interviews, and our Trackers have provided us with the ability to respond to such requests in a knowledgeable manner and to bolster our reputation for the ability to deploy frontier modelling techniques.

Modelling

build scenarios on issues such as the effects of Brexit and the EU Recovery and Resilience Facility. We have been particularly successful in winning projects based on our climate change modelling work using NiGEM. Key to this success is the integral part it plays in the development of alternative climate scenarios by the Network for Greening the Financial System (NGFS), with many financial institutions within the NGFS making use of NiGEM for their own climate modelling. This year we published joint research with the Bank of England, the Green Finance Institute, University of Oxford, University of Reading, and the UN Environmental Programme World Conservation Monitoring Centre, which explored the nature-related financial risks to the UK financial sector through a prudential-regulatory lens. This research also provided information on potentially material drivers, risk transmission channels and timescales, offering a view on ‘how’ and ‘where’ nature -climate risks pose

We have also continued to develop and deploy two other frontier models: the National Institute Regional Economic Modelling System (NiReMS) and the Lifetime Income Distributional Analysis (LINDA) model. The former allows us better to understand regional dynamics while the latter enables us to analyse distributional implications. This year we have successfully used both models to assess regional inequalities and the impact of the cost-of-living crisis on households across the income distribution in the second chapter of our UK Economic Outlook, as well as in a large Nuffield-funded grant on tracking any progress in relation to Levelling Up. Besides publishing a paper on NiReMS in the leading journal Spatial Economic Analysis, we are using both NiReMS and LINDA to provide bespoke analysis for two government departments and have proposed a separate project to another.

Policy Engagement

Central to our wider mission is a commitment to improve economic and social policy

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through the provision of high-quality, academically rigorous research. In achieving this we have a number of diverse audiences, including policymakers, universities, the business community, the media and parliamentarians.

Social media is one of our principal methods of reaching these different constituencies. This year, despite the ongoing evolution of the algorithms that underpin the platforms, we have remained focused on delivering engaging content through a variety of different formats, reflecting the fragmentation of many of the usual channels, that inform public debate. As a result, our engagement rate has continued to increase.

Our research efforts are widely cited and referenced by politicians in their speeches, within government documents and during parliamentary debates. We have provided oral evidence to the Treasury Select Committee, the House of Lords Economic Affairs committee and the All-Party Parliamentary Group (APPG) on Gambling-Related Harm, as well as held private meetings with key officials, ministers and shadowministers to discuss the economic challenges and suggest policy interventions, for example at the Low Pay Commission and at the Bank of England.

Internationally, our work has been referenced by organisations such as the European Central Bank, the Finnish Finance Ministry, the New Zealand Treasury, the European Commission, the OECD, the Federal Reserve Bank of Cleveland and the Federal Reserve Bank of Minneapolis.

Through our Business Conditions Forum, member roundtables and focused workshops, we gather the informed opinion of the corporate sector with the considerable help of UK Finance. This engagement, alongside regular discussions with our corporate members and event attendees, is distilled into our research publications and quarterly economic forecasts.

Press and Media Engagement

Building on the engagement we have achieved, coverage of our quarterly forecast for the UK and world economies continued to dominate our media monitoring. These outlooks consistently highlighted the anaemic growth rate of the UK economy, the persistent underlying inflation and widening disparities of living standards between the regions and nations of the United Kingdom. Our central message, which called for the government to focus on greater levels of public investment, a revision to the fiscal rules and a sustained focus on regional regeneration, was a consistent theme throughout and received strong coverage within the main print media, as well as on broadcast news programmes. This work has been a long running thread at NIESR and has been regularly supported by the Nuffield Foundation.

Alongside this main body of work, our commentary on the main monetary and fiscal

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events, examination of quantitative easing (QE) / quantitative tightening (QT) and the broader challenges facing UK economic policy, were frequently cited.

Our strategic approach to the release of major research report findings also yielded results. The publication of our insights into the fiscal costs and benefits of problem gambling was picked up by both the industry press and mainstream media, and our analysis of the economic costs of Brexit was extensively covered at the time, and continues to be cited by policymakers, parliamentarians and the media alike. In June we released a study into the economic and social benefits of granting asylum seekers the right to work. This was exclusively covered by the i newspaper and gained traction on social media. As a result, separate meetings took place with policymakers.

We remain focused on providing long-format commentary pieces and this year we have successfully published these in Central Banking, The Critic, The New Statesman, The Times, The Financial Times and Comment Central. The Director regularly publishes letters in the FT and provides considerable background briefing to economic journalists.

Events

Throughout this year we delivered a broad range of events that informed our stakeholders and helped us to achieve our charitable objective. Alongside our quarterly summaries of the UK and global economies, which are reaching an increasingly varied audience in terms of both sector and geographic location, we provided topical briefings around the major fiscal events and specialist workshops on quantitative easing, investment and short-termism, geopolitics and central banking. Some highlights from our calendar include:

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to mark the 300th anniversary of Adam Smith. These presentations explored the relevance of Adam Smith’s teachings to modern policymaking An event, in partnership with Cardiff University, to explore the outlook for the Welsh economy.

Our public lectures, which cover key economic and social policy issues, were delivered by Nobel laureate Professor Sir Christopher Pissarides, Professor M. Hashem Pesaran and Rt. Hon. Jesse Norman MP. All of these took place in person and were recorded for posterity available on our website.

Memberships and Sponsorships

Income from our corporate membership programme provides us with a valuable source of unrestricted funds, so we can focus on the questions that matter and support our wider mission of improving policy through the provision of accurate, authoritative analysis.

During this financial year we have deepened the relationships we have with our existing members, through the provision of dedicated events and communications, as well as attracting new members and unlocking additional opportunities to generate income. Our university partnership programme continues to be highly valued, with dedicated events on the Scottish and Welsh economies being delivered at Glasgow and Cardiff universities, respectively. This ability to model the impact of policy interventions on each devolved nation provides a richer picture to policymakers and the wider public and represents a key area of strategic differentiation for us. We are committed to developing future partnerships with more universities so that they can benefit from our convening power and ability to deliver research impact.

RISK MANAGEMENT

The Institute Risk Register is kept under regular review by management and the Trustees, through internal monitoring, and the oversight provided by the Audit, Risk and Ethics Committee (AREC). These processes have covered both short- and longterm risks. During the past year AREC has undertaken deep-dive discussions of the risks involved in income generation (with special reference to NiGEM), fund raising and due diligence and recruitment and retention of staff. The Trustees are also aware that overall responsibility for risk issues rests with the full Council. The AREC review of the risk register is ongoing looking at the risks/mitigation and measures.

Whilst it was not considered necessary to add new specific risk in response to the risks involved, it was agreed that more emphasis should be placed on business continuity issues. Mitigations to risks in the category of academic reputation, financial sustainability and IT provisions have been strengthened in this regard.

The principal risks facing the institute continue to relate to financial stability. We are seeking to address this by placing renewed emphasis on income diversification both within the category of research income and in encouraging non-research income are intended to provide additional mitigation in this area. Management systems also

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continue to strengthen in the area of project management and human resources, whilst our continued accreditation under ISO standards provides valuable independent assurance that our systems remain robust.

FINANCIAL REVIEW

The full year result is a deficit of (£758,013) reflects the costs of Phase II of the building works as well as the reduction in research income for the financial year (2023: £286,948 surplus) excluding revaluations of investments and changes in the USS deficit provision. After adjustments relating to the revaluations of investments and changes in the USS deficit provision which includes the reduction in the USS deficit recovery (£1,099,922) we have a surplus of £464,899 during the year.

Research income was approximately £1,971,631 less than the previous year due to the loss of cross institute funding (ESCoE - ONS and ESRC - IAA) at the end of last financial year as well as staff turnover in the research team.

The value of investments is approximately £1,665,123 at the end of the financial year after drawdowns of £600,000 of which £450,000 was to fund the Phase II building costs (repairs to windows, change of water pipes and general improvement to the building) and £150,000 to replenish cashflow.

Statement of Financial Activities

The Statement of Financial Activities (SoFA) for the year shows a surplus, before investment portfolio revaluations, of £341,909 (2023: £786,605) arising from gross unrestricted income of £1,664,687 (2023: £1,787,499) and £1,388,645 of restricted income (2023: £3,202,747).

This year’s financial statements have a reduction in the provision to nil for the Universities Superannuation Scheme reflecting the results of the valuation of the scheme which was undertaken from 2023. The change in the provision this year has been a reduction of £1,099,922 (2022: reduction of £499,657). Excluding the movement in the USS deficit provision and unrealised gains/losses on investments, the Institute recorded a deficit of £758,013 (2023: surplus £286,948.) Including the movement in the USS deficit provision and unrealised gains/losses on investments, the Institute recorded a net surplus for the year of £464,899 (2023: £600,263) as set out in the following table.

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2023-2024 2022-2023 2021-2022 2020-2021
£ £ £ £
Income
Fees for research
work 1,814,287 3,785,918 3,463,591 4,180,112
Economic model
fees 777,366 728,618 681,196 632,762
Publications 176,947 185,477 184,371 134,099
Corporate
membership 178,863 122,897 164,198 153,437
Donations and
contributions 2,479 52,650 2,155 33,055
Investment income 54,899 55,027 51,846 53,016
Other income 48,491 59,659 64,979 75,857
3,053,332 4,990,246 4,616,336 5,262,338
Expenditure
Staff costs* 2,547,717 2,691,373 2,795,863 2,746,446
Other expenditure 1,263,628 2,011,925 2,415,025 2,717,160
3,811,345 4,703,298 5,210,888 5,463,606
Net
(deficit)/surplus
excluding
gain/(loss) on
investments and
USS deficit
provision (758,013) 286,948 (594,552) (201,268)
Net gains/(losses)
on investments 122,990 (186,342) 108,550 622,822
Movement in USS
deficit provision 1,099,922 499,657 (951,563) 6,107
Net movement in
funds as per the
statement of
financial activities 464,899 600,263 (1,437,565) 427,661

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Total income for the year to 31 March 2024 has decreased by 39% compared to prior year this was driven by a 52% decrease in income from research work. It should be noted that a proportion of this revenue is passed on to organisations external to the Institute and matched by a corresponding increase in costs. The costs attributable to grants held and awarded by our host institutions is reflected wi thin “other expenditure” above and set out in note 5 to the financial statements within “fees and other direct costs”. Income from publications has also decreased from previous years ~~.~~ Analysis of the attributable costs is set out in note 5 to the financial statements .

Balance Sheet

Cash at bank and in hand decreased by 60% (£774,490) during the year to £519,219 due to reduced research work; there was a disposal of investment during the year valued at £600,000 for Phase II works and cashflow purposes and there was a reduction in deferred income (6%) which can be seen in note 15 to the accounts.

Debtors have decreased by 29%, mainly due to reduction in trade debtors. Most trade debtors at the end of the year have been received by the time of the report’s approval.

Within deferred income of £863,514, £252,112 represents research projects & £477,127 represents Macro modelling.

The level of unrestricted reserves on the balance sheet has increased to £1,985,467 at the end of the year compared to £1,520,568 at 31 March 2023.

The balance sheet has no provision for liabilities (31 March 2023: £1.099,922); as there is no longer a contractual obligation in relation to the USS deficit recovery plan.

INVESTMENT POLICY

The Investment Committee is responsible for managing all the invested assets held by the Institute with a view to achieving a return to help further the Institute’s objectives ~~.~~ Paying due regard to investment risks, the Committee’s overall objectives are t o create sufficient income and capital growth to support the Institute in carrying out its purposes consistently year by year with due and proper consideration for future needs and the maintenance of and, if possible, enhancement of the value of the invested funds while they are retained.

These objectives are to be achieved by investing prudently in a broad range of fixed interest securities and equities which are quoted on a Recognised Investment Exchange and unit trusts and OEICs (open ended investment companies) which are authorised under the Financial Services and Markets Act 2000. There will be no investment in unquoted securities.

The Committee operates under delegated investment powers from the Council of Management, set out in its terms of reference. The Trustees have agreed to aim for a medium risk portfolio and expect the Investment Managers to balance the risk given broad market conditions. There is currently one discretionary Investment Manager, whose performance is subject to regular review by the Investment Committee, and

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whose appointment is formally reviewed at least every three years. At the time of writing, no change to the overall investment policy or objectives has been requested.

During the year to 31 March 2024 there was a net increase in the fair value of listed investments of £122,990 (2023: net decrease of £186,342).

Reserves policy and going concern

The Trustees aim to maintain free reserves in unrestricted funds at a level which provides for the ongoing running and development of the Institute and should be sufficient to cover:

The Trustees reviewed these risks and agreed that the Institute will aim to hold free - reserves of between £2,000,000 £3,000,000 in an unrestricted general fund. These reserves are subject to annual review by the Trustees it has been agreed that the target level of free reserves remains broadly appropriate.

The balance held as unrestricted reserves at 31 March 2024 was £1,985,467 (below the minimum threshold) during the year. No USS deficit recovery plan was required resulting from the 2023 valuation, because the scheme was in surplus. This meant the deficit recovery contributions required after the 2020 valuation were no longer needed

To facilitate the management of short-term cash flow fluctuations, a small amount of the reserves has been invested in easily accessible bank accounts. In view of the above, the Trustees have considered the risks faced by the Institute and conclude that no material uncertainties related to events or conditions that may cast significant doubt over the ability of the Institute to continue as a going concern have been identified

Designated funds

Experience support fund. This was established in 2011 from a legacy of £10,000 (current balance of £8,995) from a former Institute Secretary, Mrs Kit Jones, and the money is to be used to provide an annual paid work placement for a sixth form student based in the London Borough of Barking and Dagenham, which is in line with the

The levels of any designated funds are subject to annual review by the Trustees .

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Institute is both a company limited by guarantee and a registered UK Charity. It is governed by a Council of Management who are collectively responsible for the governance and strategic direction of the Institute together with its organisational and

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financial health and its external reputation and delivery of public benefit, in the context of its principal object as defined in the Memorandum and Articles of Association.

The Council of Management consists of senior representatives from the worlds of policymaking, business and academia. Trustee positions are usually advertised publicly with the aim of appointing a diverse board with an appropriate mix of skills. Trustees are appointed at the Institute’s Annual General Meeting in December and coopted at other times subject to election at the next AGM. Prior to election, Trustees are made aware of their obligations in relation to the Charity in line with the Memorandum and Articles of Association. New Trustees receive an induction into their role which includes understanding and fulfilling any training needs. All Trustees give of their time freely and no Trustee remuneration was paid in the year (except as detailed in note 7). Details of Trustee expenses and related party transactions are disclosed in notes 7 and 9 to the accounts.

The Council of Management has four committees, consisting of the following Trustees and executive staff:

Audit, Risk and Ethics Committee

Alison Straszewski (Chair, Appointed 21 September 2023)

Keith Wade

Amanda Rowlatt

Professor Jagjit Chadha (Director) in attendance

Yetunde Aroloye (Chief Financial Officer) in attendance

Investment Committee

Stephen Daryl King Keith Wade (Chair, Appointed 24 November 2023) Giles Keating (co-opted) Professor Jagjit Chadha (Director) in attendance Yetunde Aroloye (Chief Financial Officer) in attendance Professor Adrian Pabst (Deputy Director) in attendance

Nominations and Remuneration Committee

Professor Phillip Brown Alex Baker (Chair) Professor Jill Ruberry Professor Jagjit Chadha (Director) in attendance Yetunde Aroloye (Chief Financial Officer) in attendance

Development Committee

Kofi Adjepong-Boateng Professor Jagjit Chadha (Director) in attendance Neil Lakeland (Head of External Affairs) in attendance Peter Oppenheimer Romesh Vaitilingam

Each committee reports to Council, making recommendations for Council review and decision.

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Council delegates responsibility for the day to day running of the Institute to the Director, who reports to Council quarterly. The Director works to an agreed set of objectives and key performance indicators reviewed annually, manages the research portfolio and acts as the primary representative of the organisation externally.

STAFFING

At the end of the period the Institute had a headcount of 49 staff, equivalent to 43 full time employees. The year has seen 9 starters and 11 departures. Of the current staff, 28 were female and 21 male.

Staff turnover remain under review by the trustees to ensure that measures put in place continue to have an impact.

The management recognise the Unite union as having collective bargaining rights in relation to pay, hours and holiday for all employees except for the Director and his direct reports. A Staff Consultative Committee provides a forum for discussion on noncontractual issues, which the Director reports progress to all staff at regular meetings. The Nominations and Remuneration Committee has the responsibility for setting the Director's remuneration and reviewing performance , and the Director has the responsibility for setting the remuneration of all other staff.

STATEMENT OF RESPONSIBILITIES OF THE TRUSTEES

The Trustees (who are also directors of The National Institute of Economic and Social Research for the purposes of company law) are responsible for preparing the Trustees’ annual 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies

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Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

behalf by

Sir Philip Rutnam, Chair

8[th] November 2024

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INSTITUTE OF ECONOMIC AND SOCIAL RESEARCH

Opinion

We have audited the financial statements of The National Institute of Economic and Social Research (the ‘charitable company’) for the year ended 31 March 202 4 which comprise the statement of financial activities, balance sheet, 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:

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 charitable company 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 ethic al 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 Institute’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.

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Other Information

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 the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. We have nothing to report in respect the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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requirement to prepare a strategic report.

Responsibilities of trustees

company for the purposes 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 charitable company’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.

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 are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

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Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditors/audit-assurance-ethics/auditors-responsibilities-forthe-audit

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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.

Judith Miller (Senior statutory auditor) Date 22 November 2024 for and on behalf of Sayer Vincent LLP, Statutory Auditor 110 Golden Lane, LONDON, EC1Y 0TG

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The Natlonal Instltute of Economlc and Soclal Research Statement of flnanclalactlvltles (incorporating an income and expenditure account) Forthe year ended 31 March 2024 2024 Ullrestricted 2024 Re51ticted 2024 Total 2023 Uniestiicted 2023 Restricted 2023 Total Noie Income from: Donations and contributions Charitable activities Research work Economeiric model Publications Other trading activities Investments 2.479 1479 2,250 50,400 52,650 425.642 777.366 176.947 227.354 54.899 1.388.645 1.814287 633,571 728,618 185,477 182,556 55,027 3.152,347 3,785,918 728,618 185,477 182,556 55,027 176,947 227,354 Total income 1.664.687 1.388.645 3.053.332 1,787,499 3,202,747 4,990,246 Expendilure on.. Chariiable aciiviiies Research work Econometric model Publications Other trading aCtr￿ltIeS Investment management 490.933 507.166 401.2 32.013 6.650 1,273,365 1,764298 507,166 401,296 %0,180 410,129 343,786 30,553 7,608 2.451.385 3,411,565 410,129 343,786 30,553 7.608 Total expenditure 1.438.058 1.273.365 1711,423 1,752,256 2.451,385 4,203,641 Net incomellexpenditurel before net gainslllossesl on Investments 226.629 115.280 341.909 35,243 751.362 786,605 Net gainsll105sesl on investments 12 122.990 1186,3421 1186,3421 Net incomellexpenditurel lorthe year 349.619 115.280 1151.0991 751,362 600.263 Transfers tse￿een funds 115.280 1115.2801 751,362 1751.3621 Net movement In funds 464.899 600,236 600,236 Reconclllatlon of funds: Total funds brouEhtfDrward 20a 1.520.568 1,520,568 920,305 920,305 Totalfunds carrIedfO￿ard 1.985.467 1,985,467 1,520,568 1,520,568 All of the abDVP result5are derNed frorn continuingactivttie5. Therewere Trootherrecogniseo gain50r1055e50therthanth05e stated above. Mov2meDt5 in fund5are disclosed in Note20a to Ihe financial siaiemenis. 23

The Natlonal Instltute of Economlc and Soclal Research Balance sheet Company no. 0341010 As at 31 March 2024 2024 2023 Note Fixed assets: Tangible assets Investments li 12 296,134 1,665,123 206,293 2.160,068 1,961,257 2,366,361 Currentassets: Debtors Cash at bank and in hand 14 667.733 519,219 939,611 1,293,709 1,186,952 2,233,320 Liabilities: Creditors.. amounts falling due within one year 15 {1,162,742) 11,979,191) Net current assets 24,210 254,129 Total assets less current Ilabllltles 1,985,467 2,620,490 Provisions for liabilities 17 11,099,922) Total net assets 19a 1,985,467 1,520,568 Funds: Restricted income funds Unrestricted income funds- Designated funds General funds 20a 8,995 1,976,472 8,995 2,611,495 Total unrestricted funds excluding pension provision 1.985,467 2,620,490 Pension provision 11,099,922) Total unrestricted funds 1,985,467 1,520,568 Totalfunds 1,985,467 1,520,568 Approved by the Trustees and signed on their behalf by Sir Philip Rutnam Trustee Date.. 18 November 2024 24

The Natlonal Instttute of Economlc and Soclal Research Statement of cash flow5 For the ear ended 31 March 2024 Note 2024 2023 Cash flows from operating activities Net lexpenditurel lincomeforthe year las per the staiement of financial activiliesl Depreciation chaiges (Gainsl I losses on investments Dividends, interesi and rent from investments Decrease in debtors Decrease in creditors Decrease in prowsionslor liabilities 600,263 25,422 186,342 155,0271 112,077 1645,5291 1499,6571 IU2.990} 154.899} 271.878 1816.449} 11.099.922} Net cash (used Inl operatlng actlvltles 11.319,9281 1276.1091 Cash flows from Investlngactlvltles: Dividends, interest and rentsfrom investments Purchase ol fixed assets Purchase ol investments Sale of investments 55,027 138.6141 1127.395} 1446.585} 1.056,820 18,764 Net cash provlded by Investlngactlvltles 537,739 35,177 Change in cash and cash equivalents in theyear 1782.1891 1240,9321 Cash and cash equivalents atthe beginning of the year 1,294,471 1,535,403 Cash and cash equivalents atthe end of the year 512,282 1.294,471 At l April 2023 Cash flows Othei change5 At 31 March 2024 Cash at bank and in hand 1.293.709 762 1774.4891 17,7001 519.219 16.9381 Cash held within inve5tment5 Total cash and cash equlvaients 1.294,471 1782.1891 512,282 25

The Natlonal Inslltute of Economlc and Soclal Research Notes to the financial statements For the ear ended 31 March 2024 l Accounting policies al Statutory information The NatlOn31 Institute of Economic and Social Research is a charttable company limited byguarantee and is incorporated in the United Kingdom. The registered office address is 2 Dean Trench Street. Smtth Square. London. SWIP 3HE. bl Basis of preparation The financial statements have been prepared in accordancewtth Accounting and Reporting by Charities.. Staternent of Recornmended Practice applicable to charities preparingtheir accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021- Icharities SORP FRS 1021, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. Assets and liabilities are initially recognised at historical cost ortransaction value unless othewse stated in the relevant accounting policy or note. In applying the financial reportingframework. the trustees have made a numberof subjectwe judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affectingthese financial statements are detailed within the relevant accountinE policy below. cl Public benefit entity The charitable company meets the definrtion of a public benefrt entity under FRS 102. dl Going concern The trustees consider that there are no material uncertainlies about the charitable companys abilityto continue as a going concern. The trustees do not considerthat there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of asseis and liabilitieswithin ihe next reporting period. The operational deficit relates to the planned costs ol Phase11 of the buildingworks and less research income in the financial year. The Trustees agree that the viability of the Institute as a going concern is 5UPPOrted bythe existence of rese￿eS which compiise longterm investment5 and a cash buffer, along with the unencumbered property at 2 Dean Trench Street. Further information is included in the financial review section ol the Trustees, report. el Income Income is recognised when the charity has entitlement to the funds. any performance conditions attached to the income have been met. it is probable that Ihe income will be received and that Ihe amouni can be measured reliably. Income from government and other grants. whether'capital. grants or'revenue. grants. is recognised when the charity has entitlementto the funds. any performance conditions attached to the granis have been met, it is probable ihat the income will be received and the amount can be measured reliably and is not deferred. Income recewed in advance of the prowsion of a specified seThice is deferred untilthe criteria for income recognttion are met. fl Interest and dlvldends recelvable Interest on funds held on deposit and dividends on investments are included when receivable and the amount can be measured reliably by the charity. This is normally upon notification of the interest paid or payable bythe bankor. wth diwdends. as notified bythe investment manager. gi Fund accounting Restricted funds are to be used for specific purposes 3513id down bythe donor. Expendtture which meets these criteria is charged to the fund. Unrestricted funds are donations and other incoming resources received or generated lorthe charitable purposes. Designated funds are unrestricted funds earmarked bylheirustees for particular purposes. 26

The Natlonal Inslltute of Economlc and Soclal Research Notes to the financial statements For the ear ended 31 March 2024 l Accounting policies (continued) h) Expendlture and Irrecoverable VAT Expenditure is recognised once there is a legal or constructive obligation to make a paymentto a third paty, it is probable that setllementwill be required and the amount of the obligation can be measured reliably. Expenditure is classified under the followng actwity headings.. Expenditure on charitable activities includes the costs of research work. the provision of our econometric model and the provision of our quarterly review, and their associated support costs. Other expenditure includes the cost of management of our investment portfolio and other trading activities. including costs associated with corporate membership. rental and Oiher income. Irrecoverable VAT is charged as a cost against the activityforwhich the expendrture was incurred. il Alloeation of support tosts Resources expended are allocated to the particular activitywheiethe cost relates directlyto that activity. Support and governance costs. includingthe salary and overhead costs of the centralfunction. are re-allocated to each of the actiwties on the following basis which is an estimate, based on staff lime, ol the amount attributable to each activity in theyear. 2024 2023 Research work Econometric model Publications Othertrading activities Investment management 61.9% 21.6% 14.9% 1.5Wo 0.1% 72.7 14.8% li.o% 1.4 0.1% Governance costs are the costs associated with the govemance arrangements ol the charity. These costs are associated with constitutional and statutory requirements and include any costs associaled wth the strategic management of the charity's activities. 11 Tangible flxed assels Items of equipment are capitalised where the purchase price exceeds £1.500. Depreciation costs are allocated to activities on the basis of the use ol the related assels in those activities. Assets are reviewed loi impaiiment tt circumstances indicate their carryingvalue may exceed their net realisable value and value in use. Major components are treated as a separate assetwhere they have signilicanily different patterns ol consumption ol economic benefits and ale depreciated separately over its useful life. Where fixed assets have been revalued. any excess between the revalued amount and the historic cost of the asset will be shown as a revaluation resetve in the balance sheet. Depreciation is provided at rates calculated to write down the cost ol each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows= Proiperty improvements Office and computer equipment IT upgrade Website development 10 years 3 years 4 years 4 years Land is not depreciated as it is deemed to have an infinite useful lrfe. kl Listed investments Invesiments are a form ol basic financial insirument and are inilially recognised at their iransaction value and subsequently measured at theirfairvalue as at the balance sheet date using the closing quoted market price. Any change in fairvalue will be recognised in the ststemenl of financial activities. Investment gains and losses, whether realised or uniealised, are combined and shown in the heading-Net gainslllossesl (In investments" in the statement of financial activities. The charity does not acquire put options. derivatives orother complex financial instruments. 27

The Natlonal Inslltute of Economlc and Soclal Research Notes to the financial statements For the ear ended 31 March 2024 l Accounting policies (continued) 11 Investments In subsldlarles Investments in subsidiaries are at cost. ml Debtors Trade and other debtors are recognised atthe settlement amount due afteranylrade discount offered. Prepayments are valued at the amount prepaid net ol anytrade discounts due. n) Shortterm deposits Short term deposits includes cash balances that are invested in accounts with a maturity date of bethen 3 and 12 months. ol Cash at bank and in hand Cash at bank and cash in hand includes cash and shorttemi highly liquid investments with a short maturrty ol three months or less from the date of acquisition or opening of the deposit or similar account. pl Creditors and provisions Creditors and provisions are recognised where the charity has a presenl obligation resulling from a past event thatwll probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimaied ieliably. Creditois and provisions are normally recognised at their settlement amount after allowing for anytrade discounts due. ql Flnanclal Instruments With the exception of the listed investments described above, the charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured attheir settlement value with the exception of bank loans which are subsequently measured al amortised cost usingthe effective interest method. rl Pensions The charity participates in Universities Superannuation Scheme. The assets of the scheme are held in a separate trustee-admini5tered fund. Because of the mutual nature ol the scheme, the assets are noi attributed io individual institutions and a scheme-wide coniribulion rate is sei. The institution is therefore exposed to actuarial risks associated with other institutions. employees and is unable to identify its share of the underlying assets and liabilities ol the scheme on a consistent and reasonable basis. As required by Seciion 28 of FRS 102"Employee benefits" the instilution iherelore accounts for the scheme as if it were a defined contribution scheme. As a result. the amount charged lo the profit and 1055 account represents the contributions payable to the scheme. Since the institution has entered into an agreement Ithe Recovery Plan) Ihat determines how each employer within the scheme will fund the overall deficit, the institution recognises a liabilitylor the contributions payable that arise from the agreement (to the extentthat they relate to the deficit) wilh related expenses being recognised through the profit and loss account. The charity also operates an Auto-Enrolmenl Compliant IAEI defined contribution scheme. The assets ol these schemes are individually held by its rnernbers. Contributions to these schemes in the yeai weie chaiged to the statement of financial aclmlies a5 incuired. sl Critical accountingjudgements FRS 102 make5 the distinction between a group ptan and a multi-employer scheme. Agroup plan cons1Sts of a collection of entities under common control typically with a sponsoring employer. A multi-employei scheme is a scheme lor entilies not under common control and represents itypicallyl an industry- wide scheme such as Universities Superannuation Scheme. The accounting for a multiemployer scheme where the employer has entered into an agreement with Ihe scheme that determines howlhe employer willfund a deficit results in the recognition of a liabilityfor the contributions payable that arise from the agreement (to the extent that they relate to the deficit) and the resulting expense in profit or loss in accordance with Section 28 of FRS 102. 28

The Natlonal Inslltute of Economlc and Soclal Research Notes to the financial statements For the ear ended 31 March 2024 Income from charitable activities 2024 2023 Unrestricted Restricted Total Unrestricted Restricted Total Research work Government Research Councits Trusts & Foundations European Commission institutions Other 39.879 184.075 440,549 442.281 223.954 440.549 442.281 22.549 684,954 301.653 1,668,275 736,863 233,677 1,969,928 736,863 233,677 385.763 299.191 331.918 513,532 845,450 Sub-total 425,642 1,388,645 1.814.287 633,571 3,152,347 3,785,918 Econometric model fees Subscriptions 777.366 728,618 728.618 Sub-total 777,366 728,618 728,618 Publications Sales and other 176.947 176.947 185.477 185.477 Sub-total 176,947 176.947 185,477 185,477 Total income from charitable activities 1.379.955 1,388.645 2.768.600 1,547,666 3,152,347 4,700,013 Ineome from othertradingaetivities 2024 2023 Total Total Corporate membership Room rental Other income 178,863 24.137 24,354 122.897 30.562 29,097 227,354 182,556 All income from other trading activities is unrestricted. 4 Income from investments 2024 2023 Total Total Dividends 54.899 55,027 54,899 55,027 All income from investments is unrestricted. 29

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The National Institute of Economic and Social Research Noles to the financial stalemenls For the ear ended 31 March 2024 Net Income l {expendlturel forlhe year This is stated after charging: 2024 2023 Depreciation Auditor's remuneration (excluding VATI: Audit Other services Foreign exchange losses 37.554 25,422 20.450 138 3.497 18,250 913 3,878 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel Staff costs were as follows.. 2024 2023 Salaries and wages Interim siaff costs Social security costs Employer's contribution to defined coniribution pension schemes Employer's contribution to defined benefit pension schemes 2.041.187 2,095,880 23,253 231,340 28,708 312,192 216.052 27,307 263.171 Total staff tTrefore movement in USS pension provision 2,547,717 2,691,373 Movement in provision for USS pension scheme 11.099.922) 1499,6571 Total staff costs 1.447.795 2,191,716 The following number of employees received employee benefils exceedinE£60,000 (excluding employer pension costs and employer's national insurance) during the year t>etween= 2024 No. 2023 No. £60.000- £69,999 £70,000- £79,999 £80.000- £89,999 £90,000- £99,999 £150.000- £159.999 The key management of the charity comprise the truslees. the Director. two Deputy Directors. Chief Financial Off icer and Head of External Affairs. The total employee benefits (including employerfs pension contributions and employer's national insurancel ofthe key management personnel were £631.66412023: £627,079). As permitted by the charity's memorandum and articles of association. the Director is also a member of the Council of Management. During the year, the Director received a salary of £156,84012023- £156,840) plus pension benefits of £30,89312023- £33,878). No other charity trustees were paid nor received any other benefits from employment with the charity in the year12023= £nill. No charitytrustee received payment for prolessional or other services supplied to the charity12023- £nill. Trustees, expenses represent the payment or reimbursement of travel and subsistence costs and totalled £59412023: £1.0231 incurred by 3 12023: 51 members relating to attendance at meetings of the tfU5tees. Staff number5 The average number of employees (head count based on number of staff employed and interim management personnell duringthe year was 46 12023.. 511. 32

The National Institute of Economic and Social Research Noles to the financial stalemenls For the ear ended 31 March 2024 Related party transactlons There are no related partytransactions to disclose12023: nonel- There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties. io Taxation The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. All profits from the charitls Irading subsidiary NIESR Serwces Limited are paid to the parent chanty by way of a distribution under gift aid and a corresponding tax credit is recorded at the point ol the distribution. therefore there is no liabilityto corporation tax in either the current or priorfinancialyear. The charity's trading subsidiary has been dormant in both current and prior accounting periods hence there is no distribution expected to be made. li Tangible fixed assets Freehold Property improvements ITand office equipmenl property Website Total Cost At the slart of the year Additions in year Disposals in year 118.380 148.981 116.062 233.715 11.333 42,498 543.574 127,395 At the end ofthe year 118.380 265.043 245.048 42,498 670.969 Depreciation At the start of the year Charge forlhe year 111.890 6,783 182.893 30,771 42.498 337,281 37.554 At the end ofthe year 118,673 213,664 42,498 374.835 Net book value At the end otthe year 118,380 146,370 31,384 296.134 At the start of theyear 118.380 37.091 50.822 206,293 During 2016 the charity sought independent professional advice in relation to the value of its freehold property. This advice indicated a valuation significantly in excess of the carryingvalue ol the assets in Ihe linancial statements. As a result the charity reconfirmed ils practice in recent years of not depreciaiing its freehold property. All of the above assets are used for charitable purposes. 12 Investments 2024 2023 Fair value al the start of the year Additions at cost Disposal proceeds Net gain on change in fairvalue 2.159.304 446,585 11.056.820) 122,990 2,364,410 118,7641 1186,3421 Listed investments 1,672,059 2,159,304 Investment in sut>sidiary companies Cash held by investment broker {6.9381 762 Fair value at the end of the year 1.665.123 2,160,068 33

The National Institute of Economic and Social Research Noles to the financial stalemenls For the ear ended 31 March 2024 13 Subsidiary undertaking The charitable owns the whole of the issue(l ordinary share capital of NIESR Services Limited, a company registered in England (Company number: 04063185, address: 2 Dean Trench Street. London, SWIP 3HEI. The company was dormant in bolh Ihe current and prior accounting periods and hence has not been consolidated into these financial statements. Avaitable profits are distributed under gift aid to the charitable company. The Director of the charitable company is also director of the subsidiary. 14 Debtors 2024 2023 Trade Llebtors Prepayments and other debtors Amounts owed from subsidiary undertaking Accrued income 421.081 41,350 1.033 204,269 718,085 33.525 1,033 186.968 667,733 939.611 With the exception of listed investments. all of the CharIt￿S financial instruments. both assets and liabilities. are measured at amortised cost. 15 Creditors: amounts falling due within one year 2024 2023 Trade creditors Taxation and social security Accruats Deferred incotne (note 161 96.926 88.046 114,253 863,517 617,165 176,174 266.015 919,837 1,162,742 1,979,191 16 Deferred income Deferred incorne comprise5 income receNed in advance of the prow5ion of a specilied service. 2024 2023 Econometric model subscriptions Research work Corporate membership Royalty income 477.127 252,112 97,854 36.424 402,162 425,779 91,896 Balance at the end ofthe year 863.517 919.837

The National Institute of Economic and Social Research Noles to the financial stalemenls For the ear ended 31 March 2024 17 Provlslons for Ilabllltles 2024 2023 Obligation to fund deficil on USS pension At the start of the year Novement in year 1,099,922 11.099.922) 1,599,579 1499,6571 At the end ofthe year 1,099,922 A (leficit recovery ptan was put in place as part of the 2020valuation. which required payment of 6.2% of salaries overthe period l April 2022 until 31 March 2024. at which point the rate would increase to 6.3%. As set out in the note. no deficit recovery plan was required under the 2023 valuation because the scheme was in suiplus on a technical piovisions basis. The institution was no longer required to make deficit recovery contributions from l January2024 and accordingly released the outstanding provision to the profrt and loss account. Deficit recovery contributions due within one yearforthe charity are £60.34612023= £90.8371. 18a Pension schemes- Universities Superannuation Scheme (USS) The total amount credited to the statement of financial actiwties for the year relating to USS pensions was £836.751.12023.' £187.4651 as shown in note7. The latest available complete actuarial valuation of the Retirement Income Builder is as at 31 March 2023 (the valuation datel. which was carried out using the projected unit method. Since the institution cannot identify its share of USS Retirement Income Builder Idefined benefit) assets and liabilities, the following disclosures reflect those relevant forthose assets and liabilities as a whole. The 2023 valuation was the seventh valuation forthe scheme under the scheme-specific funding regime introduced bythe Pensions Act 2004, which requires schemes to have sufficient and appropriate assets to cover their technical provisions (the statutoryfunding objectivel. At the valuation date, the value of the a5se15 01 Ihe scheme was £73.1 billion and the value of the 5cherne's technical provisions wa5 £65.7 billion indicating a surplus of £7.4 billion and a funding ratio of Ill%. The key financial assumptions used in the 2023 valuation are described below. More detail is set out in the Statement ol Funding Principles. CPI assumption Term dependent rates in line with the (Jifference between the Fixed Inierest and Index Linked yield cuNes less- 1.096 p.a. to 2030. re(Jucing linearly tyO.l% p.a. from 2030 lall Subject Benelits with no cap= CPI assumption +3bps Benefits subjectto a"50ft cap- of 5% Iproviding inflationary increases up to 5%, and half of any excess inflation over 5% up to a maximum ot io%i'. e.pl a_&siimntinn minii%.?hn Pension increases to a floor of O.O%l Discount rate (forward rates) Fixed interest giltyield curve plus- Pre-retirement= 2.50% p.a. Post-retirement 0.90% p.a. The main demographic assumptions used relate to the mortalityassumptions. These assumptions are based on analysis ofthe scheme's experience carried out as part of the 2023 actuarialvaluatlon. The mortality assumptions used in these figures are as follows: 2023 valuation Mortality base table Future improvements to mortality 101% of S2PMA'light' for males and 95% of S3PFAfor females CMI 2021 wrth a smoothing parametei of 7.5, and initial adijition of 0.4046 p.a. log6 w2020 and w2021 parameters, and a long-term improvement late ol 1.80% p.a. for males and 1.60Vo p.a. fnrfp.m21p.% 35

The National Institute of Economic and Social Research Noles to the financial stalemenls For the ear ended 31 March 2024 18a Pension s¢hemes- Universities Superannuation Scheme IUSS) (continued) The current life expectancies on retirement at age 65 are: 2024 2023 Males currently aged 65 (years) Females currently aged 65 lyearsl Males currently aged 45 lyearsl Females currently aged 45 lyearsl 23.7 2S.6 25.4 27.2 24.0 25.6 26.0 27.4 2024 2023 Discount rate Ipensionersl non pensioneisl Pensionable salary growth Pension increases ICPII 1.4% 10.7% nla 0.00% 1.4% 10.7% nla 2.20 18b Pension schemes- defined contribution The charity operates an Auto-Enrolmeni Compliant IAEI (lefined contribution scheme with Legal and Generalfor non-research staff members who do nol qualify for the Universities Superannuation Scheme. The total cost charged to the statement of financial aclivilies forthe year relating to non-USS pension contributions was £27.30712023'. £28,708) as shown in note 7. 19a Analysls of net assets between funds Icurrentyear) General Designated funds Restricted funds unrestricted Total fund5 Tangible fixed assets Investtnents Net current assets 296.134 1,665.123 15.215 296.134 1,665,123 24.210 8.995 Net assets al 31 March 2024 1.976.472 8.995 1.985.467 19b Analysis of net a55et5 between fund5 (prior yearl General unrestricted Designated funds Restricted funds Total funds Tangible fixed assets Investments Net current assets Provisions for liabilities 206.293 2,160.068 245.134 11.099.922> 206,293 2.160.068 254,129 11,099.9221 8.995 Net assets al 31 March 2023 1.511.573 8.995 1.520.568 36

The National Institute of Economic and Social Research Noles to the financial stalemenls For the ear ended 31 March 2024 20a Movements In funds (current year) Expenditure & losses At31 March At l April 2023 Income & gains Transfers 2024 Restricted funds: 1.388.645 11.273.365) 1115,2801 Total restricted funds 1.388.645 11.273.365) 1115,2801 Unrestricted funds: Designated funds: Work experience support fun(1 8.995 8,995 Total designated funds 8.995 8,995 General funds 2.611.495 11.099.922) 1.787.677 12.537.980) 1,099,922 115,280 1,978.472 Pension provision Total unrestrlcted funds 1.520,568 1.787.677 11.438.058) 115.280 1,985,467 Total funds 1,520,568 3.176.322 12.711.423) 1,985.467 The narrative to explain the purpose of each fund is given at the foot of the note below. 20b Movements In funds Iprlor yearl Expenditure & losses At 31 March At l April 2022 Income & gains Transfers 2023 Restricted tunds: 3,202,747 12,451,385) 1751,3621 Total restricted funds 3,202,747 12,451,385) 1751,3621 Unrestricted funds: Designated funds.. Work experience support fund 8,995 8.995 Total designated fund5 8,995 8,995 General funds Pension provision 2.510.889 11,599.5791 1.787.499 12.438.255) 499,657 751.362 2,611,495 11.099.922) Total unrestricted funds 920.305 1,787.499 11,938.5981 751,362 1.520.568 Total funds 920,305 4,990,246 14,389,983) 1,520,568 37

The National Institute of Economic and Social Research Noles to the financial stalemenls For the ear ended 31 March 2024 20c Movement in funds (purposes of funds) Purposes of restrlcled funds Restricted funds represent amounts received from funders which have to be used for the specific purpose for which they were given. Restricted income is set out by source belowfor allfunder5, unless they do notwish to be named, contributing in excess of £30,000 ol restricted income duringthis or last year. 2024 Totsl 2023 Total Economic and Social Research Council Nuff ield Foundation Education Endowment Foundation Office for National Statistics Gambling Commission Green Finance Initiative Department for Culture. Media and Sport Department for Business and Technology National Academy for Education Leadership Wales Low Pay Commision What Works Centre for Children & Families Department for Science. Innovation & Technology Financial Fairness Trust Other 440.549 314,765 110.270 86,382 74.530 72,440 71.680 70,610 37.633 34,035 29.353 736,863 152,122 16,859 1,433,074 91,326 7,131 3,100 387,430 232,100 60,803 81,939 46,398 1,388,645 3,202,747 Purposes of designated funds Work experience support fund.. Funded frorn a legacy of £10,000 received in 2011 a formersecretary, Mrs Kit Jones, thi5 designated fund is to enable paid work placements for sixth form students from the London Borough of Barking and Dagenham. 21 Legal stalus of the charity The charity is a company limited by guarantee and has no share capital. The liabilityol each member in the event of winding up is limited to £1. 38