Interesting, then, that they put on a recent event entitled 'Top 200: Managing Change through Transition Periods'. Apparently it drew on evidence from Canada and New Zealand, amongst others, on how best to ride out tough times in the public finances. From what I've heard NZ implemented a drastic cut in research funding in the nineties, pulling back from funding all but the most economically relevant areas. More recently, Canada has announced that it will be cutting back on research funding, to the consternation of researchers.
If the Institute for Government has the ear of Government, we should all prepare for some drastic 'out of the box' thinking, modelled on our overseas colleagues. Or am I just being paranoid?