Is Cameron a statesman or a showman?

The truth is that David Cameron caught a break over Libya. But next time he may not be so lucky

Some good news for Nick Clegg. He has an admirer. Now the bad news. His fan is sitting 2,000 miles away in the West Bank town of Ramallah.

"If I was living in Britain I'd vote for Clegg," says Dr Husam Zomlot, deputy commissioner for international relations for Fatah. "I'm still what you call left-wing, but obviously after what the Labour government did I couldn't support them." He smiles, "I'm speaking in a personal capacity, of course."

In a few hours he is preparing to depart for a visit to London and other European capitals. He will be travelling in expectation, not just hope.

"We're looking to Europe to help us move the process forward. Britain, Germany and France are key." Is Britain now seen to be playing a positive role from the Palestinian point of view? "Absolutely. Cameron and Hague have come a long way. They're prepared to take an independent line from the United States. This is very important."

The product of the Bullingdon Club and the product of the PLO executive committee have found common cause.

Ever be a diplomat

In the centre of Jerusalem, Mark Regev, official spokesman for the Israeli prime minister, Binyamin Netanyahu, has a different perspective on David Cameron's role in the search for regional peace.

"To be honest, I'm not really that up to speed with current UK policy, or changes from the stance of the previous UK administration," says Regev. "You're better off putting that question to one of my colleagues in the foreign affairs ministry."

Contrast with his response on the status of other allies. "Prime Minister Netanyahu and Prime Minister Papandreou are on the phone constantly. We have an excellent relationship with the Cypriots, who are an important regional partner. We are developing our links with eastern European states like Bulgaria."

Regev's ignorance of UK policy is, of course, diplomatic. Other Israeli officials are more blunt: "What do we think when we hear the British Prime Minister referring to Gaza as a prison camp? It won't surprise you to learn we don't find it helpful."

Statements of intent

When Tony Blair said in the wake of September 11, "the kaleidoscope has been shaken. The pieces are in flux", he wasn't kidding. If you view Iraq as Blair's nemesis, and his departure the beginning of the end of the Labour government, the reordered image in which a Tory PM is praised in Ramallah and subtly snubbed in Jerusalem is uneasy on the eye but was foreseeable.

On one level, this strange state of affairs is simply the fruition of a stance trailed by William Hague as far back as 2006. Any article written by the then shadow foreign secretary headlined "We should not be afraid to criticise Israel" would send a signal. That it was written at precisely the moment Hezbollah was sending 4,000 Katyusha rockets slamming into Israeli cities, and Tel Aviv was pledging "a very painful and far-reaching response", represented a clear statement of policy intent for a future Tory government.

There is also the political reality on the ground. The peace process has stalled, the Netanyahu coalition has neither the wit nor the political capital to restart it, and Downing Street clearly feels there is little to be lost in ruffling the feathers of a lame-duck administration.

But there is another factor. Cameron simply cannot help approaching foreign affairs like a bull in search of a china shop. It may be unfashionable to say this at a time when he is being widely feted as the Lion of Benghazi. But though his instincts on Libya were right, his policy implementation has been lousy. Lest we forget, it was his Foreign Secretary who informed the world a no-fly zone was unnecessary, except perhaps over Caracas.

It was Cameron himself who marched the troops up the hill in his initial statement to the Commons, only to have his spokesman spin them back down again 24 hours later. Britain's Prime Minister failed to get even the principle of a military response inserted into the EU's Libya communiqué, didn't talk to the US president for nine full days in advance of the tabling of the no-fly resolution, and had to rely on the Arab League to convince the US that they had the necessary cover to take a resolution to the UN.

The truth is David Cameron caught a break over Libya. Next time he may not be so lucky. And next time is fast approaching.

Play it big?

Let us return to Dr Zomlot. His visit is not to exchange pleasantries. It's part of a concerted push for full EU recognition of a Palestinian state, regardless of the status of the peace process, when the Obama deadline for resolution expires in September.

On present form, Cameron may be inclined to pitch to the gallery. Recognition would be a bold gesture. And our Prime Minister has a taste for the big political play.

But not automatically the right one. The collapse of negotiations was not necessarily viewed as harmful by the Palestinians, in particular Hamas. Recognition would not of itself kick-start that process, very possibly the reverse. And recognising a state governed by a political authority that has consistently postponed elections, in the face of opposition from what, inconveniently for Israel's critics, remains the Middle East's only true functioning democracy, would hardly fit the spirit of the "Arab spring".

David Cameron has survived his first significant foreign-policy trial, but he's done so by the skin of his teeth. Those to come will require statesmanship, not showmanship. His reaction to premature calls for Palestinian statehood will test whether he possesses it.

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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/