Undisguised rivalry. David Cameron and Boris Johnson. Source: Getty
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Leadership speculation harms the Tories but they can't help themselves

Conservative MPs' anguish flows from their knowledge that Cameron is both the best candidate and not good enough to deliver outright victory.

Some features of the political landscape are so banally unchanging that Westminster, with its addiction to volatility, chooses simply to ignore them. One such is the fact that David Cameron is by far the best candidate to lead the Tory party into the next election and will do so. The incumbent has many flaws. I wrote about at least one of them in the magazine this week. But there is no ready alternative. The majority of Tory MPs – and, when they are being candid, Labour MPs – can see that Cameron’s capabilities as a confident performer, offering the reassurance of continuity in difficult times, constitute the Tories' best chance of thwarting Ed Miliband.

It follows that those Conservatives who currently encourage talk of the succession have already decided that there is no way Cameron can win in 2015 or actively want him to fail. That is plainly true of a hard core of MPs – the fifth column, as Matthew Parris once described them – who relish the prospect of seeing the Prime Minister humiliated. By most accounts their number is no more than around 30.

More reasonable Tory MPs have learned to live with the fanaticism in their midst and wait in hope that proximity to the election will eventually impose discipline. There was, therefore, astonishment at the appearance of stories in the Times and the Mail on Sunday in the past week stoking speculation about Boris Johnson’s return to parliament. It was reported that Downing Street wanted the London Mayor to get involved in the general election campaign and bind himself in institutional loyalty to the Cameron project before polling day by standing as an MP. This has been widely interpreted as a gambit by the Chancellor to flush out Boris’s intentions and force his hand, thereby destabilising whatever strategy he might have to position himself as a White Knight saviour of the Tories after a 2015 defeat. Boris was said to be enraged.

Of course, the net outcome of all of this is that collectively the Tories look a little bit less familiar with the distinction between arse and elbow. News stories predicated on top Tories calculating the probability of defeat makes defeat more probable. Seen from the point of view of the rank and file, loyal but mostly anonymous MPs – the ones who just want to get on with trying to govern effectively and taking the fight to Labour – all of this briefing and counter-briefing is self-indulgent and self-destructive. It’s bad enough when maverick rebels on the back benches rock the boat. Seeing it rocked from the centre is thoroughly depressing.

And yet the speculation won’t quite go away because most Tories have done the maths and worked out that, in all likelihood, a Commons majority is beyond their reach. They might pin Labour back as the economy recovers. Ukip might shrivel after the European elections. But even in the most auspicious circumstances it is hard to see Cameron’s share of the vote soaring to the 40-plus mark at which point control of parliament becomes a realistic prospect. And if the limit to Conservative ambition is being the biggest party in a hung parliament, there is also a natural ceiling on loyalty to the leader – even when he is the best one available. This is the underlying cause of all Tory anguish . They know it doesn’t get better without Cameron and they know that with Cameron it isn’t good enough.

Rafael Behr is political columnist at the Guardian and former 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/