Lib Dem activists are prepared for war over the snoopers' charter

After repeated assaults on civil liberties by the coalition, the party's grass roots are angry, worried and very distrustful.

Like some political version of Schrödinger's cat, Lib Dem MPs appear to be trapped in a Westminster box, while activists stand outside, wondering if the fight for civil liberties is alive or dead within. We don’t know – but worryingly, there’s currently a hell of a stench of dead something or other coming from that direction.

Civil liberties are a touchstone issue for party members, lying at the core of why most joined the Lib Dems. And we’ve taken a hell of a battering. For example, this week our MPs voted against a set of proposed amendments in the Defamation Bill which would have made it harder for corporations to silence critics using the threat of libel. This despite the fact that it’s party policy and was proposed in the 2010 manifesto. Apparently, we’re on a promise that it can all get changed back again now it’s returned to the Lords. Although the initial reaction from the party doesn’t exactly fill, you with confidence.

A Liberal Democrat spokesman said the party would be instructing their MPs to vote with the Government. 'Unfortunately we are in a Coalition and this was one of those areas where we could not get our Conservative colleagues to agree with us,' he said

Nor does this excellent analysis of the situation from David Allen Green. And don’t forget all this is on the back of the Justice and Security Bill (secret courts, to you and me) debacle. Seven Lib Dem MPs rebelled over that Bill, fewer than the number who managed to show a bit of backbone during the rebellion over planning regulations this week. 

But what’s really keeping activists awake at night, the radioactive isotope that might release the Tory poison and kill the cat, is the new version of the Communications Data bill. You will recall, perhaps, that we were told last year, by a Lib Dem minister, no less - that :

The proposals being considered would simply update the current rules – which allow the police in criminal investigations to find out who was contacted and when – to cover new forms of technology that didn’t even exist when the original laws were made, like Skype

…and it was only when the party went stark raving bonkers that anyone in Westminster woke up and smelled the coffee.

By December, we had moved on considerably, with Nick saying, "we cannot proceed with this bill and we have to go back to the drawng board", which is about as clear as you can get and in marked contrast to his original comments.

But the grass roots party is angry, it’s worried and it’s very distrustful. You didn’t have to go through the last bill with a fine toothcomb to drive a coach and horses through its assault on civil liberties. This time , presumably, rather more care has been taken  - so activists are primed and ready to take whatever is proposed in the next Queen’s Speech apart word by word, line by line.

If the Westminster party thought the grass roots gave them a hard time on civil liberties before, just try and propose some legislation that does anything but roll back the state’s powers in this area. You haven’t seen anything yet.

Richard Morris blogs at A View From Ham Common, which was named Best New Blog at the 2011 Lib Dem Conference

The Communications Data bill is being rewritten after Nick Clegg said the draft version was unacceptable. Photograph: Getty Images.

Richard Morris blogs at A View From Ham Common, which was named Best New Blog at the 2011 Lib Dem Conference

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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/