Michael Moore’s time to shine

The Scottish Secretary has been quietly effective until now. But how will Michael Moore cope with Al

"You! You should know better!" is how Michael Moore, the Secretary of State for Scotland, recalls me greeting him when he first arrived in parliament, newly elected, and several years after we had first worked together as researchers.

And it's true. I can't bear it when friends of mine stand for parliament. I go out of my way to dissuade them. I hate watching them being torn apart in the media or in that vile snakepit, the Commons chamber. I would like all my friends to live cocooned in safe, secure obscurity. But with Mike, as with some others, I have been proved wrong.

He is the least-known Lib Dem in the cabinet, elevated to it after the David Laws fallout last year. Of all the politicians I know, he remains the person whose feet are most firmly on the ground. Just as well, considering his height.

He has been criticised for being too cautious. Some Scottish Liberal Democrats would like him to go on the attack more often, but that is simply not his style. Mike is not from the Flashman school of politics and to criticise him for that is unfair. He is not in this game for the thrill – he is there to get results and make a difference.

Value judgement

In this, he reminds me of Alistair Darling, whom most people can barely remember from the early years of his career, but who by the end of 13 years in cabinet had widespread respect. Like Darling, Mike is bright, pays attention to detail, and has grown into the job.

His tireless campaigning in the recent Scottish Parliament election campaign has won him a lot of respect in the Scottish party. He will need to rely on that as Alex Salmond attempts to drive a wedge between Moore in Westminster and the new Scottish Liberal Democrat Leader, Willie Rennie. But Mike and Willie know each other well, get on, and understand the way this will work.

I loved a recent story about some hoo-ha on a political scandal-mongering website. Michael's name was in the frame. He walked into the Scotland Office unable to find any of his key staff. Eventually he found them in a meeting room worrying about how to rebut the story. "We know it isn't true, so can we just on with the real job at hand," he said. Typical Michael.

When he was stung like Vince Cable by the Telegraph's honeytrap, not only were his answers great, but he didn't hide away. Instead, he went on air and justified standing up for Liberal Democrat values.

But Moore now faces a critical test. With a single party in power, since the SNP's unexpected outright election victory, the Scotland Office is in a pivotal position between the UK government and the Scottish Executive.

He has been thrust further into the limelight, as the Scotland Bill must now go through Holyrood for a second time. Its first passage was supported by the SNP, but the second passage is an obvious opportunity for First Minister Salmond to start flexing his muscles.

Hot potato

The potential for meltdown between Westminster and Holyrood is significant, but Moore has taken this in his stride, turning the tables on the Scottish government and rightly asking it for a detailed case for the changes they want. After all, he delivered a Scotland Bill where Labour produced only a white paper and the Tory manifesto promised not much more.

But what looked like a substantial package of new powers, likely to get though without controversy, has become a hot potato with the spectre of an eventual independence referendum looming.

Labour and the Tories won't want much in the way of further devolution in the House of Commons, making Michael's strategic role all the more significant. His accountant's mind has the forensic abilities to navigate this difficult bill. And he has a calm and reassuring Commons style that is a tribute to his Presbyterian minister father.

During the final years of Labour's rule in Westminster, Alistair Darling faced up to Gordon Brown, in the interests not of his party, but his country. Michael Moore has the ability and the character to do the same . . . whether facing Westminster or Holyrood.

The fifth man is stepping into the light.

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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/