According to charity sector specialist magazine Third Sector, Andrew Hind, chief executive of the Charity Commission, has said he is “extremely concerned” that the Smith Institute is misrepresenting the contents of the regulator’s report into the think tank.

The commission reprimanded trustees of the think tank this week for failing to protect the charity from claims that it is supporting the Labour Party.

Paul Myners, deputy chair of the institute, responded by saying the commission was asking trustees to ensure that all speakers were politically neutral and that the regulator had “shown a fundamental lack of understanding of the work that all think tanks undertake”.

But Hind responded: “We are not saying we expect trustees to guarantee that no party political statements will be made. What we are saying is that if you want to have politicians at your event, as a think tank charity you have to ensure that there is balance.

“The trustees are disputing some of the clauses of the report and are alleging that the Charity Commission is naive and doesn’t understand how think tanks operate. But we have had extraordinarily in-depth discussions with them over the past few months.”

At the commission’s open board meeting in Liverpool yesterday, Hind again defended the report and said it would be “a reference point for the future” for other think tanks.

He said: “Not only are there some important findings about the Smith Institute, but there are also some important points of principle for all charity think tanks.”

Dame Suzi Leather, chair of the Charity Commission, said the enquiry had produced “an exemplary report from an independent regulator”.

Guido has been pleasantly surprised with the thoroughness of the Charity Commission report – the way the Sith’s trustees have tried to spin it has demonstrated their unsuitability to be a charity. Paul Myners really ought to resign.