What sort of prime minister would Miliband make?

For a leader who clearly favours consensus over conflict, Miliband will need to get used to saying 'no' to groups and lobbies who have previously enjoyed an easy ride with Labour.

Part of the reaction to Ed Miliband’s speech earlier this week, signalling seismic changes in Labour’s relations with affiliated trade unions, was the boldness of his move. Not to be rude, but we’re not used to that from Ed. Cautious and incremental steps are what we usually get. It begs the question: what sort of prime minister would he make?

Last Friday, an unnamed former Labour minister told the Guardian that Miliband needed to move decisively in reframing the relationship with the trade unions, following the Falkirk selection debacle. "We need to have a commission that looks at the union link. All the general secretaries need to sign up to it. We need to get to a place where you simply have one category of Labour party members. There should no longer be a formal union affiliation.

"Of course, if unions want to donate to the party they can. Ed is not there yet. But he will be. He acts in a deliberative way. But when he makes a decision he moves very rapidly."

And so it came to pass. Miliband showed he was willing to square-up to Unite and announce changes revolutionising trade union involvement in the party that many observers thought were beyond him. Tony Blair’s glowing tribute was both genuine and generous. So does this week signal the emergence of Miliband 2.0?

Not really. His move was a superb piece of reactive political boldness (it’s hard to think he had such major reform in mind two weeks ago). Opportunistic, rather than instinctive, but decisive, too, when his mind is made up; and being able to react to big events is, after all, the stuff of the premiership.

In an interview last month, Lord Stewart Wood, shadow minister without portfolio and invariably described as Miliband’s consiglieri, offered this assessment of his boss: "In terms of style, Ed is collegiate. He looks for views early, before he makes up his mind. Gordon [Brown] wanted us to respond to his ideas [after] he had already taken them a long way down the line." He added: "Unlike a lot of other politicians, he invites people to give him constructive criticism. He has a desire to improve [and] he solicits views from people across the party."

As a senior adviser to Gordon Brown, and later energy secretary, Miliband was a mainstay throughout 13 years of Labour government and saw first hand the damage done to the government by the Blair/Brown wars. If his "collegiate" style is a reaction to that, then Wood is certainly right about his willingness to learn and improve.

But the government machine he would inherit in 2015 is markedly different to the one he left behind as a cabinet minister in 2010. The social democratic model of the New Labour years is now defunct. It is not enough to throw money at projects and move on to the next thing. Spending cuts and those infernal 'hard choices' will be the order of the day for the foreseeable future.

Prime Minister Miliband will need to speak the "language of priorities" and know a thoroughbred idea from a civil servant’s hobby-horse in order to make his small state socialism work. For a leader who clearly favours consensus over conflict, Miliband will need to get used to saying 'no' to groups and lobbies who have previously enjoyed an easy ride with Labour. Here he can learn from his predecessors.

Blair was good at building an effective team around him, yet there are still too few Milibandites willing to put their shoulder to the wheel for their man. While Gordon Brown ruled by pulling a thousand strings and making the Whitehall machine do his bidding, Miliband often gives the impression of making things up as he goes along. Yet despite this, he is far better prepared for the realities of power than Blair and Brown were in 1997 and his shadow cabinet is one of the most experienced since the Second World War.

Temperamentally, though, Miliband seems closer to President Obama than any of his immediate British predecessors. He is prepared to address vested interests but does so cautiously in closely-scoped terms, witness his criticisms of banks and energy companies, and sometimes seems unsure how far to push things.

Perhaps he should triangulate between Tony Blair’s informal sofa government and Margaret Thatcher’s manic swinging handbag? Where Miliband’s bridge-building style will work well, though, is if there’s another hung parliament in 2015; exercising soft power to build alliances and seek common ground in a way neither Blair nor Brown were well-suited to. For those who balked at the prospect of Prime Minister Miliband a week ago, how he would govern in 2015 has suddenly become a very real preoccupation.

Ed Miliband delivers his speech on reforming the Labour-trade union link at The St Bride Foundation in London earlier this week. Photograph: Getty Images.

Kevin Meagher is associate editor of Labour Uncut and a former special adviser at the Northern Ireland office. 

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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/