Why Miliband is right to sit on the fence on Syria

Politicians, far more than commentators, have a moral and a legal duty to proceed with caution.

In his response to David Cameron's statement on Syria, Ed Miliband signalled that he was neither with the hawks urging US destroyers towards Damascus nor with the Stop the War protesters (addressed last night by Diane Abbott) declaring "hands off Syria!" He refused to "rule out military intervention" but also insisted that he would not be pushed into a decision today. "I do not rule out supporting the Prime Minister but I believe he has to make a better case than he did today," he concluded. Cameron needed to explain how intervention would affect Britain's wider stance on Syria (is regime change the de facto aim?), the UN weapons inspectors needed to report and provide "compelling evidence" that the Assad regime was responsible for the Ghouta massacre, and the approval of the Security Council needed to be sought (although, as he rightly noted, a Russian or Chinese veto should not be a bar to action). Until all of these conditions are met, it is too early to say whether military action is justified. 

For this stance, he is inevitably being denounced as a fence-sitter, as a flip-flopper, unfit to be leader of opposition and certainly unfit to be prime minister. But in a political culture that too often prizes certainty above all else, Miliband's honest expression of doubt was immensely refreshing (as well as in line with public opinion). Many of the same commentators who have openly struggled to reach a position are now denouncing the Labour leader for his equivocation. But politicians, far more than columnists, have a moral and a legal duty to proceed with caution. How many of the 412 MPs who voted for Iraq now wish that they had sided with those who called for the inspectors to be given more time? 

At some point in the next week, Miliband will need to decide whether to support Cameron's plan to take military action. But until then, who can argue with his assertion that it "is right to go about this process in a calm and measured way"? As he noted in the most important passage in his speech, "the basis of making the decision determines the legitimacy and moral action of taking action". Whatever stance Miliband takes, it will be infinitely more credible for being reached with patience rather than haste. In a repudiation of Tony Blair, who, in the infamous words of the "Downing Street memo", shaped the facts around the policy, he declared: "evidence should precede decision, not decision precede evidence." If I was leader of the opposition, I would want to wait until all the facts were in - and that is what a prudent Miliband is doing. 

Ed Miliband speaks at the New Statesman centenary party at Great Hall on June 20, 2013 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: www.oldmutualwealth.co.uk/ products-and-investments/ pensions/pensions2015/