Sarah Wollaston: Cameron has caved in to lobbyists on minimum alcohol pricing

The Conservative MP criticises the PM's U-turn and says "we should all be aware" of Lynton Crosby's links to the alcohol and tobacco industries.

For this week's NS, I've interviewed Sarah Wollaston, the independent-minded Conservative MP for Totnes, who became the first parliamentary candidate to be selected through an open primary. We discussed the government's decision to abandon minimum alcohol pricing (which she is "devastated" about), the malign influence of Lynton Crosby and why David Cameron's inner circle is still, in her words, "too white, male and privileged". You'll have to pick up the magazine to read the full piece, but here are some of the highlights. 

Minimum alcohol pricing: "it's lobbying"

Wollaston, a former GP, devoted her maiden speech to the need to introduce minimum alcohol pricing and warns of disastrous consequences for public health if ministers do not think again. When I asked her what lay behind David Cameron's change of heart, she unhesistatingly replied: 

It’s lobbying. And to those who think that lobbying doesn’t work, well, if it didn’t work they wouldn’t be doing it.

She added: "I think we should fight back against that and I also think we should fight back against policy being driven by pollsters. There are some things that might be unpopular before they come in - a bit like seatbelts - but, actually, you look at the evidence, nobody now would say that seatbelts were a bad thing."

On Lynton Crosby's alcohol and tobacco links: "we should all be aware"

The abandonment of minimum pricing, plain cigarette packaging and a lobbyists’ register have all coincided with the arrival of Lynton Crosby as the Tories’ campaign manager. Wollaston is troubled by the influence of the man whose company Crosby Textor has lucrative ties to the alcohol and tobacco industries. She told me:

For someone giving direct advice at the heart of the government to have such close links with industry internationally - I think that’s something that we should all be aware of.

In view of this, I asked Wollaston whether she would like to see Crosby replaced. "It’s probably not sensible for me to be calling for somebody’s removal, because I don’t know enough about what else he’s doing - he may be having some very positive effects of which I’m not aware," she said, laughing in recognition of her lukewarm endorsement.

When I quoted Crosby’s alleged advice to Cameron to "scrape the barnacles off the boat" and focus on the "core issues" of the economy, immigration and welfare reform, she rolled her eyes and said: "Well, I’m sorry, actually if you look at the Health and Social Care Act, the one area that was left with government was public health. In fact, Lansley at one point wanted to call it the Department of Public Health, so public health is core government business."

On Cameron's Etonian inner circle: "it's a kind of blindess to how this looks"

Back in March, Wollaston warned Cameron that his inner circle looked "too white, male and privileged". After the appointment of two more old Etonians - Jo Johnson and Jesse Norman - to prominent policy positions, does she feel that the situation has got even worse?

I don’t think, genuinely, that anyone minds where any individual person went to school, I really don’t think it matters. But, you know, I went to excellent state schools, but I bet you that there are not five people from my two state secondary schools at the heart of government right now.

She added: 

I think it’s a kind of blindness to how this looks to other people and why it matters to other people. I’ve no doubt, individually these are extremely talented people, but it should be more than having a team of people around you who you feel comfortable with, because they have that shared background and experience. Sometimes, actually, it’s better to surround yourself with people who might challenge and disagree with you, you’re a better member of a team...This is something that they obviously don’t see, they don’t see something that to me seems pretty obvious"

Welfare refom: "I’ve very rarely ever met people who wanted to be on benefits"

I raised the case of Stephanie Botterill, the woman who killed herself over fears she would be unable to pay the "bedroom tax", with Wollaston and she told me: "It’s right that we look in detail about the circumstances and await what the coroner’s report is, but, in wider terms, when times are tough you really have to focus on what measures help to reduce suicide because we know that this is a pattern in previous recessions."

When I mentioned the "strivers/scroungers" rhetoric deployed by some politicians, she said: 

You do have to be very careful about the language that you use and you have to be doubly careful about the language that you use when times are tough, and also about the effect that it has. Nobody wants to be unemployed; I’ve very rarely ever met people who wanted to be on benefits, but I have met very many people who are trapped on benefits, there is an issue about that.

On the benefit cap: we should be prepared to say "it didn't work"

Throughout the interview, Wollaston returned repeatedly to the need for "evidence-based" policy (most notably in the case of minimum alcohol pricing). With this in mind, I raised the subject of the benefit cap, which Eric Pickles has privately warned could cost more than it saves due to the likely rise in homelessness. 

While she told me that she believed the cap would be "a good thing in the long term", she added that "if it isn't, we should be honest about that and change it."

You have to look at the evidence, so I think down the line, if there’s evidence that it’s costing us more, sometimes you have to bite the bullet and say ‘it didn’t work’”.

Conservative MP Sarah Wollaston, who was elected in Totnes in 2010 after becoming the first parliamentary candidate to be selected through an open primary.

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/