Lord Ashcroft's marginals poll gives Labour and the Lib Dems reasons to be cheerful

Labour has a 14-point lead in the 32 most marginal Tory-Labour seats, while the Lib Dems are just three points behind the Conservatives in the eight most competitive Tory-Lib Dem seats.

After the return of economic growth and the narrowing of Labour's poll lead prompted some Tories to talk of a "glide path to victory", Lord Ashcroft's marginals poll has provided a much-needed dose of realism. The survey of the Conservatives' 40 most vulnerable constituencies shows that the defection of Tory supporters to UKIP means that Labour now enjoys a 14-point lead in the 32 seats where it is in second place, compared to a national lead of just five in Ashcroft's poll. In short, the party is gaining support where it matters most. Labour is on 43% (down one since 2011), the Tories are on 29% (down six), UKIP is on 11% and the Lib Dems are on 8%. That lead is large enough for Miliband's party to win the 32 most competitive Con-Lab marginals and a further 66 off the Tories if the swing is replicated elsewhere, putting it on course for a comfortable majority.

But it isn't just Labour and UKIP that have cause to be cheerful; there's also some rare good news for the Lib Dems. In the eight most marginal Con-Lib Dem seats, Nick Clegg's party is just three points behind David Cameron's, with a swing of only 0.5% to the Tories since 2010. The Conservatives are on 32%, with the Lib Dems on 29%, Labour on 18% and UKIP on 12%. For the Lib Dems, it is further evidence that their vote is holding up where they are competitive. Rather than merely defending their existing 57 seats, the surge of UKIP (which draws around 60% of its support from 2010 Tories) means that the Lib Dems could yet hope to dislodge the Tories in seats where they are vulnerable.

The poll will gladden Labour hearts and darken Tory ones but it's important to remember, as Ashcroft says, that it is "a snapshot", not a prediction. It tells us what would happen were a general election held today, not what is likely to happen in 2015. Governments invariably gain support in the run-up to a general election as voters stop treating opinion polls as a referendum on the government (2010 was typical of this), so Labour needs a large cushion of support to be confident of victory. A similar poll conducted by PoliticsHome in September 2008 suggested the Conservatives would win a landslide majority of 146 seats, while another, carried out in October 2009, pointed to a Tory majority of 70. Just seven months later, Cameron was left with no majority at all. In other words, 18 months out from the general election, only the most optimistic Labourite or the most pessimistic Tory would treat this poll as a reliable indicator of the result.

David Cameron, Ed Miliband and Nick Clegg attend a ceremony at Buckingham Palace to mark the Duke of Edinburgh's 90th birthday on June 30, 2011. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Show Hide image

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/