What the SNP's breakthrough tells us about UKIP's prospects

As it was for the "Tartan Tories", the real test for UKIP is not whether it can take votes off the Conservatives but whether it can build a broader long-term coalition.

Today politicians are fearful of the potential "breakthrough" of a nationalist separatist party with a charismatic leader. No, not Alex Salmond and the SNP, but Nigel Farage and UKIP. Nevertheless, the similarities between the two parties are striking. When you consider that both are obsessed with constitutional politics and plebiscites; both are derided for their collection of "fruit cakes"; both admire the right-wing economic policies of Margaret Thatcher; both stand on a none-of-the-above party platform, challenging the political establishment; and, ultimately, both believe that the blame for all life’s woes lie with membership of a certain union.

So should this worry us? Not necessarily. If there is one thing that we can learn from Scotland, it is that the voters are able to differentiate between different elections. For example, although the SNP did unbelievably well in 2011, the year before, in the UK general election, they stood by and watched Labour consolidate their position as the main party of Scotland at Westminster.

And according to recent opinion polls, they still command solid support at the Scottish Parliament, despite six years in government, although this is not the case in recent UK polls. In addition, if every single opinion poll on the referendum is to be believed, then their entire raison d'être, separatism, will be resoundingly rejected next year. Yet it is from history that we should view this nationalist success, and measure the potential success of UKIP.

The SNP's breakthrough in Scotland did not happen in 2011, nor in 2007 as some would have us believe, but rather over time, and can be traced back to the void created by the 1960s decline of the Tories in Scotland, which the SNP helped to fill, as well as the start of distrust of the three main parties among the Scottish electorate. This was first noticed when the SNP started to win local elections, and come strong runners up in by-elections like the one in West Lothian in 1962, where it scooped most of the Conservative votes. Since then, many of its strongholds are in what were once Conservative areas. Hence the old SNP nickname north of the border:"the Tartan Tories".

They manoeuvred to collect these initial votes through their embrace of previously Tory values around tradition and, most obviously nationalism, as well as an ownership of rural issues; depicting Westminster as distant and unrepresentative; oh and the argument that membership of the union was not only expensive, but somehow that Scotland was subsidising England. Sound familiar?

Nonetheless, this was nothing new. Despite the Tories winning half the Scottish vote in 1955, Scotland has long voted disproportionately for centre-left parties. For most of the 19th century, it was as sterile towards the Tories as it is today. Thus there was no future for the SNP in remaining "Tartan Tories". The smart thing the party did was not just to provide a hearse for Scottish conservatives, but also a vehicle that can be boarded by social democratic Scots as well.

Of course these were long term changes. More recently, in the last decade, the SNP, via devolution and local government, was able to portray itself as a more credible party of government that could be trusted with the keys to the public coffers, helped by competent and charismatic leadership.

The real test of UKIP’s prospects, then, is not if it take Tory votes, but if it can substantially spread its vote more widely, like the other main nationalist separatist party in these isles has done. It is not until UKIP builds this sort of coalition among the electorate, as the SNP has done in Scotland, that people can truly claim to be witnessing a "breakthrough".

James Mills is a Labour researcher and led the Save EMA campaign

Scottish First Minister and SNP leader Alex Salmond attends a Commonwealth Games event at Glasgow Airport. Photograph: Getty Images.
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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: www.oldmutualwealth.co.uk/ products-and-investments/ pensions/pensions2015/