Cultural apartheid?

The Proms remain a resolutely all-white, Middle English affair

Years ago, before politics intervened and I had a life, I was a regular at the BBC Proms. I was never a 'Promenader' as even when younger I could not stand the effort of standing or the attentions of the significant number of sad middle aged and elderly queens who occupied the floor of the Royal Albert Hall: it is supposedly the best gay pick up joint in London if you are looking for brains rather than body.

However, there I was the other Thursday at a sold out Prom featuring the Baroque music of Handel and Telemann. Thank goodness there was no "new BBC commission" of a ghastly modern piece or revival of some best forgotten rubbish by Tippett that you normally politely sit through in the first half before enjoying the rest of the evening.

Several months ago I was a guest at an excellent luncheon thrown by the Lord Mayor of London at Mansion House to celebrate the arts in London (I could not quite work out my contribution Arts except the money I have paid out for theatre and opera tickets over the years) and one of the after-lunch speakers was the outstanding British tenor Ian Bostridge who proved that he had not just a voice but intelligence behind it as well.

He might well sing "Happy we!" from Acis and Galatea (although quite why he had his hand in his pocket whilst doing it I know not) during last Thursday’s concert as his acute business brain racked up the royalties on his new Handel CD and the free publicity the BBC were giving it.

But as I looked around a packed Albert Hall I saw barely one non-white face. The BBC Proms are entirely a white, middle class, suburban and Home Counties affair. As the concert over-ran due to endless changes in seating arrangements for the orchestra a significant contingent of the audience had to rush out before the encore to catch their trains to Dorking and all stations south.

Whereas a number of white Londoners flock to Notting Hill to view the Carnival (entirely as spectators), virtually no Black Londoners venture to a Prom. Classical music is just one area of London artistic life that shows no sign of an integrated society. Indeed, while the residents of Surrey, Hertfordshire and those London boroughs that cannot accept that they were incorporated into Greater London in 1965 feel safe venturing into Central London for a Prom, they would never dream of experiencing one of Ken Livingstone’s taxpayer-funded "cultural" extravaganzas in Trafalgar Square where they might have to mix with Londoners who think a movement is something their bowels do each morning.

Musicals may be for the West End queens and the foreign tourists, straight theatre for the artistic elite, and opera for the upper classes and the corporate sponsors but classical music concerts remain for the middle classes. The Proms are the BBC's way of keeping Middle England happy.

As London this week unveils its statue of Nelson Mandela our capital city’s cultural life continues to practise a firm apartheid system.

Brian Coleman was first elected to the London Assembly in June 2000. Widely outspoken he is best known for his groundbreaking policy of removing traffic calming measures
Show Hide image

Stability is essential to solve the pension problem

The new chancellor must ensure we have a period of stability for pension policymaking in order for everyone to acclimatise to a new era of personal responsibility in retirement, says 

There was a time when retirement seemed to take care of itself. It was normal to work, retire and then receive the state pension plus a company final salary pension, often a fairly generous figure, which also paid out to a spouse or partner on death.

That normality simply doesn’t exist for most people in 2016. There is much less certainty on what retirement looks like. The genesis of these experiences also starts much earlier. As final salary schemes fall out of favour, the UK is reaching a tipping point where savings in ‘defined contribution’ pension schemes become the most prevalent form of traditional retirement saving.

Saving for a ‘pension’ can mean a multitude of different things and the way your savings are organised can make a big difference to whether or not you are able to do what you planned in your later life – and also how your money is treated once you die.

George Osborne established a place for himself in the canon of personal savings policy through the introduction of ‘freedom and choice’ in pensions in 2015. This changed the rules dramatically, and gave pension income a level of public interest it had never seen before. Effectively the policymakers changed the rules, left the ring and took the ropes with them as we entered a new era of personal responsibility in retirement.

But what difference has that made? Have people changed their plans as a result, and what does 'normal' for retirement income look like now?

Old Mutual Wealth has just released. with YouGov, its third detailed survey of how people in the UK are planning their income needs in retirement. What is becoming clear is that 'normal' looks nothing like it did before. People have adjusted and are operating according to a new normal.

In the new normal, people are reliant on multiple sources of income in retirement, including actively using their home, as more people anticipate downsizing to provide some income. 24 per cent of future retirees have said they would consider releasing value from their home in one way or another.

In the new normal, working beyond your state pension age is no longer seen as drudgery. With increasing longevity, the appeal of keeping busy with work has grown. Almost one-third of future retirees are expecting work to provide some of their income in retirement, with just under half suggesting one of the reasons for doing so would be to maintain social interaction.

The new normal means less binary decision-making. Each choice an individual makes along the way becomes critical, and the answers themselves are less obvious. How do you best invest your savings? Where is the best place for a rainy day fund? How do you want to take income in the future and what happens to your assets when you die?

 An abundance of choices to provide answers to the above questions is good, but too much choice can paralyse decision-making. The new normal requires a plan earlier in life.

All the while, policymakers have continued to give people plenty of things to think about. In the past 12 months alone, the previous chancellor deliberated over whether – and how – to cut pension tax relief for higher earners. The ‘pensions-ISA’ system was mooted as the culmination of a project to hand savers complete control over their retirement savings, while also providing a welcome boost to Treasury coffers in the short term.

During her time as pensions minister, Baroness Altmann voiced her support for the current system of taxing pension income, rather than contributions, indicating a split between the DWP and HM Treasury on the matter. Baroness Altmann’s replacement at the DWP is Richard Harrington. It remains to be seen how much influence he will have and on what side of the camp he sits regarding taxing pensions.

Meanwhile, Philip Hammond has entered the Treasury while our new Prime Minister calls for greater unity. Following a tumultuous time for pensions, a change in tone towards greater unity and cross-department collaboration would be very welcome.

In order for everyone to acclimatise properly to the new normal, the new chancellor should commit to a return to a longer-term, strategic approach to pensions policymaking, enabling all parties, from regulators and providers to customers, to make decisions with confidence that the landscape will not continue to shift as fundamentally as it has in recent times.

Steven Levin is CEO of investment platforms at Old Mutual Wealth.

To view all of Old Mutual Wealth’s retirement reports, visit: products-and-investments/ pensions/pensions2015/