The Dale Farm eviction is the ugly side of localism

Both central and local government are failing in their roles as a guarantors of minority rights.

The Dale Farm case reminds us of the limitations of unadulterated localism. For the eighty families of Dale Farm about to be forcibly evicted in the coming days, the 'deadening' hand of the central state might be a welcome reprieve from the whip hand of the local.

Localism is buzzword of the political age, summing up the zeitgeist in no more than four syllables. The government, in its unending quest to free local authorities from control of the things they don't care about, has allowed unprincipled local authorities to abandon the people they don't care about, with equal vim.

The Traveller community, long a target for legitimated discrimination, has felt the full force of this bonfire of regulation. Evidence submitted to the CLG Select Committee enquiry into abolishing regional strategies suggests that the removal of a strategic approach to Gypsy and Traveller accommodation provision will result in lower pitch allocations. The consequence of this could be an increase in Gypsy and Traveller unauthorised sites which are estimated to cost local authorities approximately £18m a year in eviction costs alone. Moreover, clauses 91, 92 and 93 of the new local authorities bill states that Local Planning Authorities (LPAS) will no longer be required to submit their local development schemes to the Secretary of State (91), that LPAs will no longer have to implement inspectors' recommendations (92) and that LPAs will no longer be required to send their annual reports to the Secretary of State.

These changes promise to make a bad situation even worse. According to the Commission for Racial Equality more than 90 per cent of traveller planning applications are initially rejected compared to 20 per cent overall. Local authorities have clearly failed this community that only numbers between 15,000 and 30,000 people. IPPR research proposed a sensible solution seven years ago, including the treatment of permanent and transit sites as social housing and the establishment of a special purpose registered social landlord to run them. But to add insult to injury, last year's emergency budget removed the modest £30 million in place to support the establishment and development of traveller sites.

In the current situation both central and local government are failing in their roles as a guarantors of minority rights. There are just 3,729 caravans on unauthorised sites in the whole of England with a further 13,708 caravans on council and private sites. In 2009, the Human Rights Commission estimated that 'the entire Gypsy and Traveller population could be legally accommodated if as little as one square mile of land were allocated for sites in England.'

For the more unscrupulous and cash-strapped local authorities the pressure from established residents is often great, as we've seen this week in Basildon, where over 85 per cent support the council's actions. Vanessa Redgrave and the Bishop of York are all very well and good but they are a poor substitute for proper legislative oversight, ensuring that a council can't abuse a group with little political power. So where does this leave localism?

IPPR North research proposed a framework of efficiency and effectiveness to enable tough decisions about service provision to be made. Based on the principle of subsidiarity, where it appears local authorities are unable to take decisions in the interests of the wider good, such matters need to be resolved at a more strategic level. In the absence of regions this may well now need to be nationally. But we also argue for a set of 'national minimum outcomes' - some simple statements made by central government (unlike targets mind) against which local service providers can be held accountable. Such sophistications may run against the unfettered localism promulgated by the government but in this case we need to balance localism with fairness.

Lewis Goodall is Researcher at IPPR North

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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/