Political sketch: Pinning down a squirming survivor

Diamond keeps playing dumb.

Bob Diamond took time off from signing on yesterday to stick as many fingers as possible up to those who had put him on the dole - except he didn’t.

The unacceptable face of capitalism (July 2012 version) had them queueing in the aisles for a seat at the anticipated outing of politicians, regulators and anyone else who played a part in his decision to quit as Barclays chief executive 12 hours after announcing he was staying.

But imagine, if you can, a damp squib in a bucket of water at the bottom of Lake Windermere to get the full idea of the revelations that emerged.

We did learn that Bob loved Barclays, that there had been wrong-doing and he had been “physically sick” when he learned about it - but it was nothing to do with him.

In fact after two and a half hours in front of the Treasury Select Committee you were not even sure if Bob knew where the bad Barclays was, and it was clearly nowhere near the good Barclays he ran.

By then even the MPs had worked out that Bob, hoping for a £20m pay-off to ease his way into unemployment (to add to the £100m apparently already banked in the last six years), thought that omerta was the best way of getting his hands on the loot.

In the best case yet for a judge-led inquiry into the banking scandal, MPs on the committee were generally hopeless at pinning down the squirming survivor.

Chairman Andrew Tyrie tried to make a fist of it with opening questions about who in Whitehall had backed Barclay’s decision to fiddle the inter-bank lending rate but it was clear from the off that the much-trailed naming of the guilty men - or women - was not going to happen.

Why so many thought that Bob was going to come clean when he has ambitions to stay in the business is suprising and despite Tyrie’s open invitation he declined.

This reluctance was judged to be mere shyness by Tory Michael Fallon who, having declared an interest as the deputy chairman of a city firm, then failed to declare an even greater interest as deputy chairman of the Conservative Party.

Shocked by Bob’s failure to dish the dirt, Fallon cut to the chase and asked if former Brown Minister Shriti Vadera had poked her nose into the Libor affair.

In effect, the Brown Government was trying to get you to fiddle the figures, he said desperately to a now Sphinx-like Bob.

Off he went again with a list of miscommunications, misunderstandings, reprehensibles and handful of unfortunates as he adopted the tactic of answering the question not asked.

Did he live in a parallel universe? asked one MP after an hour when you weren’t even certain Bob was in the country, never mind the office, when the fiddling was going on.

The man invited by the Today programme to lecture on ethics did not even blush when he was reminded how he had trotted out similar sentiments when he called for an end to banker-bashing during his last appearance.

The sudden appearance of Leveson inquisitor Robert Jay could only be wished for as the MPs tried and failed to get him to abandon the 5th amendment.

And it took the appearance of the Bassetlaw basher John Mann to get down and dirty about the life and times of Bob Diamond.

Having accused him of being either “grossly negligent" or “grossly incompetent,” the hero of Pastygate demanded Bob hand over any shares and bonuses he was now in line for.

Having had plenty of time to practice this answer on MPs who had earlier inquired more politely, Bob said this was a matter for the board.

And that was that.

Earlier it had been reported that Bob’s daughter had sent the following tweet: “George Osborne and Ed Miliband you can go ahead and HMD.” Check it out on Google. Bet her dad agrees.

Bob Diamond. Photo: Getty Images

Peter McHugh is the former Director of Programmes at GMTV and Chief Executive Officer of Quiddity Productions

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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/