Cameron's clique accused of having "frozen out" his only black adviser

In another blue-on-blue attack, friends of Shaun Bailey claim he was sidelined by Cameron's Etonian aides.

In last Saturday's Daily Telegraph, David Davis pleaded with David Cameron to stop recruiting "old Etonian advisers". Tomorrow, in another blue-on-blue attack, some of the same advisers are accused of having "frozen out" Cameron's only black working class aide, Shaun Bailey. Bailey, who stood unsuccessfully in Hammersmith for the Tories at the last election, is said by a friend to have been sidelined after criticising No. 10's failure to address the rising cost of living and to build a more diverse party. Bailey was sacked as a special adviser earlier this year and moved to a part-time role at the cabinet office. The friend in question tells the Telegraph:

They just didn’t get what Shaun was saying. He kept challenging them saying, ‘Why are we not saying this?’ … He went into Downing Street and the first thing he said was, ‘The only political conversation you need to have publicly is about the cost of living’. He also gave plenty of warning that if they wanted to talk about being a diverse party, people have to see it. But they didn’t want to hear about it. Shaun was frozen out.

And there's worse, much worse. The friend adds:

Shaun always says that you can see from space that the place is dominated by those from Eton.

It was very difficult for Shaun. He was never included. He got the distinct impression they tried to keep him away from the Prime Minister. It got to a point where Shaun just stopped saying things because it was just getting him in trouble. There was even one week where he decided not to go into the office because he wanted to see if they would even notice. They didn’t. None of them.

Elsewhere, in an anecdote that Ed Miliband's team will already be considering how best to deploy at PMQs, we learn that Bailey was "horrified" when US pollster Frank Luntz visited Downing Street and asked Cameron's advisers "what kept them awake at night". The friend explains:

The pollster asked them what kept them awake at night and they didn’t even have the wit to understand that he meant it was the electorate.

When the pollster pointed that out to them, they literally said, 'Nothing keeps us awake’. How can you be advising people and nothing keeps you awake? Then someone said 'school fees’.

Here's how Labour's Michael Dugher has responded tonight:

"Once again David Cameron has shown that he is in complete denial about the cost of living crisis facing millions of hard-pressed families thanks to his Government's failure.

"When even one of his own advisers dares to point out some home truths, they are immediately shunned in favour of yet more old school chums and yes men.

"The idea that private school fees is the only thing keep David Cameron's clique awake at night tells you everything you need to know about this Government.

"This is a Prime Minister that takes being out of touch to a whole new level".

Some will dismiss all of the above as the usual grumblings of an out-of-favour adviser, but the fusion of race and class is toxic for Cameron. As pollsters regularly attest, now, more than ever, the Conservatives are viewed as "the party of the rich" and it's worth remembering that the Tories received just 16 per cent of the ethnic minority vote at the last election. In an acknowledgment that the party still has a race problem, there has long been talk of Cameron delivering a speech on the subject, in which he would repudiate Enoch Powell's "rivers of blood" speech and Norman Tebbit's "cricket test", the memory of which still hinders support for the Tories among ethnic minority voters. But for now, the Prime Minister would do well just to stem the tide of leaks from his party.

Update: Never blame the King, always blame his advisers. Here's how Bailey has responded on Twitter.

P.S. If you haven't already, do pick up this week's NS to read Jason's cover story on Cameron's clique and how "the old ruling class became the new ruling class", including his interview with Eton headmaster Tony Little (read some web-only extracts here).

Shaun Bailey, who stood for the Conservatives in Hammersmith at the last general election, with David Cameron.

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/