What will the Conservatives do if Labour comes third in votes but first in seats?

Will they have a leg to stand on?

The top Tory blogger Iain Dale notes Labour's third place in "virtually every poll" and asks: "Isn't that a BIG STORY?"

He adds:

The even bigger story is that Labour comes third but Gordon Brown still clings to the premiership. And I'm not talking football.

If that happened I can foresee marches on Downing Street. And I'll happily be at the front!

For me, the bigger story is how Labour could indeed end up third in the share of the popular vote but still emerge top in number of seats. What, if this happens, will the Conservatives do? What will David Cameron's strategists be telling him "the line" is on the morning of 7 May?

I asked a senior Tory-supporting journalist what he would advise Cameron to say in such an event and he just shrugged his shoulders. The Tories could hardly proclaim it an outrage -- even though, to be honest, it would be -- or cry "We wuz robbed!" or organise protest marches, seeing how they have remained the only party committed to defending the current dysfunctional, disproportionate first-past-the-post voting system. They would not have a leg to stand on. And anyone who saw Liam Fox squirming on the Daily Politics last week as Andrew Neil put this point to him will be aware of how tough a spot the Tories would be in.

Might Cameron consider electoral reform in exchange for a Labour-blocking deal with the Lib Dems? The Observer seems to think so -- the headline on its interview with the Tory leader is: "David Cameron leaves door open for poll deal with Liberal Democrats". The paper's political duo, Andrew Rawnsley and Toby Helm, write:

But when pressed on whether, in the event of a hung parliament, he would be prepared to discuss the Lib Dems' central demand for electoral reform -- something he has always opposed until now -- he declines to rule it out. When it was put to him that refusal to move on the issue could mean the Lib Dems teaming up with Labour to push through electoral reform anyway, the Tory leader says: "We think this is an important issue."

Cameron's comments suggest the Tories may now be prepared to put reform of the voting system on the table in coalition talks, rather than allow the issue to be a "deal breaker". After being asked four times to rule out such discussions on electoral reform, Cameron said: "Put the question in, you know, Serbo-Croat, if you want to -- but you're going to get the same answer." Labour has promised a referendum on the alternative vote system.

There are indeed Lib Dems close to Nick Clegg who have privately suggested that Cameron might be willing to put electoral reform "on the table". But my two problems with the Observer story are: 1) Cameron tells Rawnsley and Helm in the same interview: "I want us to keep the current system that enables you to throw a government out of office. That is my view." It's a line he has taken time and again during this campaign and he would look ridiculously opportunistic and cynical if he dropped the Tories' centuries-old commitment to first-past-the-post at the first sign that Labour might be able to cling on to power in a hung parliament. And 2) his own party wouldn't agree to such a deal.

Cameron, for short-term, tactical reasons (ie, his own survival as party leader), might (might!) be willing to entertain the idea of some form of compromise on electoral reform in order to get his foot through the door of No 10 Downing Street, but his party, for long-term, strategic reasons, would remain implacably opposed to electoral reform. The Tories would argue (in agreement with Polly Toynbee) that proportional representation would deny them their "divine" right to rule alone in future and would keep the party out of power for much longer, with Labour and the Lib Dems more likely to form "progressive" coalitions in office under PR.

So here's a question for Iain Dale: if Brown "clings" on to power after 6 May, despite coming third, and you join the front of a march on Downing Street, will you be carrying a placard proclaiming, "Time for PR"? If not, why not?


Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

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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: www.oldmutualwealth.co.uk/ products-and-investments/ pensions/pensions2015/