Miliband renews attack on New Labour ahead of "peace meeting" with Blair

The Labour leader tells his MPs that it is right to move on from New Labour, which was "formed 19 years ago", but new polling revives doubts over the party's performance.

Ed Miliband addressed the Parliamentary Labour Party last night for the first time since Tony Blair's intervention in the New Statesman and took the opportunity to again rebut his criticisms. He told MPs:

New Labour was formed 19 years ago. Tony Blair taught us the world changes, and the world does change, and we will learn our lessons.

After Blair warned him not to "tack right on immigration and Europe, and tack left on tax and spending", Miliband pointedly added:

I am incredibly proud of our record, but we need to learn this truth: opposition leaders who say their government got it right and the electorate got it wrong remain leaders of the opposition.

The party, he suggested, had become a victim of its own success (or at least the coalition's failure).  "Eighteen months ago, people were saying we were not up to it. Now they are claiming we are too effective an opposition". 

Miliband was aided by a spirited John Prescott, who declared that it was "crazy" for Labour start "dividing" less than three weeks before the local elections. "Let’s stop complaining and start campaigning," he said. As Tessa Jowell revealed on the Daily Politics yesterday, Blair and Miliband will meet later this week (possibly tomorrow, when they will both attend Margaret Thatcher's funeral) in an attempt to heal the rift.

At last night's meeting, Miliband compared Labour to "a football team that is winning at half-time" but given that no modern opposition has ever won without being at least 20 points ahead (the Tories' peak lead from 2005-10 was 26 points; Labour's highest to date is 16) many MPs remain alarmed at the slightness of the party's advantage.

The latest Guardian/ICM poll puts Labour just six points ahead of the Tories, while the YouGov daily tracker has them eight points ahead. Worse for Miliband, the ICM survey suggests that Labour's lead could be in spite of, rather than because of his performance as leader. The poll gives him a net approval rating of -23, well below Cameron's -11 and Osborne's -14 and worse than the -17 he recorded at the nadir of his leadership in December 2011. 

But this is a parliamentary system, you say, why should we care? The answer is that personal ratings are frequently a better long-term indicator of the election result than voting intentions. Labour often led the Tories under Neil Kinnock, for instance (sometimes by as much as 24 points), but Kinnock was never rated above John Major as a potential prime minister. A more recent example is the 2011 Scottish parliament election, which saw Alex Salmond ranked above Iain Gray even as Labour led in the polls. The final result, of course, was an SNP majority. Conversely, Margaret Thatcher won in 1979 despite trailing Jim Callaghan by 19 points as the "best prime minister".

But Labour MPs are also troubled by the Tories' continuing advantage on the economy, another historically reliable indicator of the general election result. The latest YouGov poll shows their lead stretching from one point to four. 

Blair's intervention aside, the last month has been a successful one for Miliband. David Miliband's departure for New York has finally drawn a line under the fraternal soap opera and his Commons statement on Thatcher was rightly praised by Conservative MPs for its statesmanlike qualities. But once politics as normal resumes after Wednesday, Blair is unlikely to be the only one posing tough questions for Miliband. 

Ed Miliband speaks at the CBI's annual conference on November 19, 2012 in London. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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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/