Conservative Party conference in 2008. Very white. Photograph: Getty Images.
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Does the Tory party understand non-white people?

The real reasons why so many black and Asian people refuse to vote Conservative.

David Cameron made the welcome point this week that black and minority ethnic (BME) communities must be given greater respect if the Conservative party intends to win the next general election. Pointing to research  showing that only 16 per cent of BME voters support the Conservatives while two thirds voted Labour, he deserves  a great deal of credit given the vitriol that calls for BME representation receive from within the party’s right wing. When Sayeeda Warsi was appointed as Conservative Party chairman, a cynical response followed from the influential Tory website ConservativeHome, where Nile Gardiner commented that appointing someone with her views was “the wrong signal at a time when Britain is fighting a global war against Islamic terrorism and extremism”.

Within the parliamentary party, modernising voices are calling for change. Conservative Party Vice Chairman, Alok Sharma, is responsible for developing the strategy to encourage greater BME participation. He recently blogged the case for listed companies to reveal how many employees come from BME backgrounds and to state numbers represented on boards or at senior level. Croydon Central MP, Gavin Barwell, has also come out in support of Cameron’s plea to the party and said the party “faces an existential threat if it does not increase support among voters from minority communities.”

But before anyone begins to think that with all this support coming from the leadership, BME communities have “never had it so good” it may be worth looking again at the remedies being proposed and being honest about the real reasons why so many black and Asian people refuse to vote Conservative.

The Independent newspaper reported that MPs are being urged to ramp up their ethnic minority PR to win favour. Instructions to get more coverage in ethnic-minority press, attend key events, and hit TV and radio stations with BME friendly messages are the order of the day. As noble an idea as this might first appear, other rather more substantive factors need “fessing up” to head on.

Research by Tory peer and pollster, Lord Ashcroft, shows that Bangladeshi and Black African respondents were the most likely to say Labour “shares my values” (74 per cent and 81 per cent). Only 16 per cent of Black Caribbean respondents said the Conservative Party “shares my values”. At the same time, the research concludes for British Muslims voters, there is a “perception that the Conservative Party does not stand for fairness, is actively hostile to people from different ethnic and religious backgrounds, and that its policies have shown this to be the case, were the strongest factors for Muslims who say they would never vote Tory.”

I can understand how views like this are incubated. As a recent – now former – conservative local councillor at Reigate and Banstead Borough Council in Surrey, I asked for a break between the Christian vicar-led prayers and the beginning of council meetings. Sadly, I was not too shocked on receiving an email from an executive member of council - copied to the rest of the Conservative group – which read: “As far as I am concerned the most basic gift we can offer the minorities is the one we all enjoy and that is freedom. Freedom to not attend, walk away, or go somewhere else if you don't like the way we live.”  This view was shared unanimously by the other Conservative members. On my part, I was keen to serve another term, but the local party was not quite so keen.

Similarly, when the first ever black MP was selected to serve my constituency, East Surrey, an emergency general meeting had to be called soon afterwards as party members refused to deliver leaflets because they were “unhappy” about the result. No doubt, many of the few BME Tory activists will also have their own stories to tell. Although I could cite numerous other incidents, I remain a Conservative party supporter. Perhaps real change is possible for the next generation of Tories taking up office? 

 But without real change on the ground – in constituencies and local conservative groups - PR campaigns are likely to be interpreted as “spin”. Lazy thinking such as the idea that black and Asian people mainly live in Labour seats is something that needs to be challenged within the party at every level. As Mehdi Hasan notes: “In 14 of the top 50 seats where the Tories narrowly came second to Labour in 2010, non-white voters made up more than 10 per cent of the population.”

Some Tories are even arguing that BME communities are over-represented in lower socio-economic groups and so more likely to vote labour. I doubt that past leaders, Margaret Thatcher and John Major would subscribe to this view, nor most likely would much of the white working class – another important part of the community Tories need to win the next election. Without change, I can easily imagine a world where the Tory party follows the Republicans’ trajectory to irrelevance amongst black and Asian people. Just as the GOP reached out to their right-wing in the misguided belief that getting their vote out would make up for lost BME votes, the Tory party runs a real risk of pandering to the vocal neo-conservative and right wing at home.

More effort in reaching out to BME communities will undoubtedly help, especially in the 14 marginal constituencies such as Birmingham Edgbaston, Tooting, and Luton South. However, the party needs to challenge itself on the question of what values it shares with BME voters? Being told to “go home” if we don’t like how things are being done is not a strategy that resonated well with me. I doubt it is likely to work too well on the electorate in Birmingham, or at my home, Surrey. 

Update, 29 December 19.50: This piece originally attributed remarks about the appointment of Sayeeda Warsi to Tim Montgomerie, editor of Conservative Home. They were in fact made by CH contributor Nile Gardiner. This has been corrected.

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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/