No one made the case for elected mayors

The government did almost nothing to sell the idea to voters.

This afternoon Michael Fallon and Ed Balls were on Radio 5, discussing the local election results. After a bit of Punch and Judy stuff, Balls was asked about the underwhelming demand for elected mayors. His response was, in tribal terms, a bit of a blinder: “David Cameron said it would mean Borises up and down the country - the country has said no.”
Boom. Acknowledge, bridge, communicate. ABC. No PR team could have scripted it better. Fallon, for his part, shrugged his shoulders. Nowt to do with me, guv: “We wanted to allow cities to choose. We've got to look at these results but it was entirely the cities' right to choose.” Well, the thing is, these cities didn’t choose. Not really. Only 15 per cent of people in Nottingham – which rejected the idea – cast a vote on the issue. But then many MPs are somewhat taciturn on the issue of voter apathy. Gets in the way of all the point scoring, which of course we voters love.
Whatever you think about elected mayors – and maybe you agree with a fellow journalist who today told me that not voting for them is a vote “against populism and egoism” – the biggest shame to come out of this initiative is that it has singularly failed to grab the public’s imagination. The campaign was doomed from the start. We’re not happy with our politicians at the moment – and I hardly need to go into all the reasons why – so it’s not surprising voters didn’t fancy creating yet more. Then you had the problem of who was actually going to champion them. 
Local party activists? Fat chance. Most of them like the status quo – not least local councillors. After all, at the moment a council leader can be king of the hill off the back of a couple dozen votes from the other councillors and enough from the public to get them elected in the first place; which given the amount of people who care about local politics in Britain, isn’t a lot. So the local political classes pulled together. They made ludicrous claims about the salaries these characters would coin in, all the while pushing Whitehall hard to get more powers for themselves.
As Stuart Drummond, the Mayor of Hartlepool, also said on Friday, the government has been incredibly half-arsed about the whole thing. According to him, the Department for Communities and Local Government hadn’t consulted with current incumbents about the system, despite years of lobbying, nor done much selling of the idea. The end result was that no one really knew what they were voting for. So they either said no, or didn't. It’s hard to say whether Whitehall didn’t like the idea, thought it was more trouble than it was worth, simply messed up, or all three.
As you may have guessed, I do like this idea. We need growth and jobs, especially outside of London, and a central figure around which the business community can congregate and who can sell the town to investors is valuable, as long as he or she knows what they're doing. Councils, by and large, aren’t too bad at providing basic services – but this side of things is something with which they often struggle. If you want to find out more, have a read about the work Ray Mallon’s been doing in Middlesbrough over the last ten years.
But this isn't really the point. It doesn’t matter which side you take on the debate: it matters more that the debate didn’t happen at all.
Alan White's work has appeared in the Observer, Times, Private Eye, The National & TLS. He lives in London and tweets as @aljwhite. As John Heale, he is the author of One Blood: Inside Britain's Gang Culture, republished this year.
Birmingham was one of nine cities to vote against having a directly-elected mayor. Photograph: Getty Images.

Alan White's work has appeared in the Observer, Times, Private Eye, The National and the TLS. As John Heale, he is the author of One Blood: Inside Britain's Gang Culture.

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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/