Gordon Brown addresses activists at St Josephs on March 10, 2014 in Glasgow. Photograph: Getty Images.
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The trouble with Gordon Brown

The former PM has had plenty of time to give us a glimpse of what his "progressive" Britain might look like. We’re still waiting.

No party is more adept at exploiting the gap between practice and rhetoric in Scottish society than Labour, and no Scottish politician is more authentically Labour than Gordon Brown. After a series of relatively underwhelming, policy-focused speeches, the former Prime Minister has arrived back in the independence debate with a thud.

Over the last few days alone, he’s had his new book, My Scotland, Our Britain, serialised in the Daily Record, he’s mobilised Labour’s grassroots against separation and he’s published an essay in the Guardian casting the referendum as a chance to "demonstrate how distinct nations, proud of their cultural identities, can also transcend them."

Brown’s heightened presence in the campaign is designed to stop the flow of low-income voters away from the Union and towards independence. So far, it seems to be working. Ipsos MORI’s latest poll shows support for independence among the poorest fifth of Scots down 4 per cent and among Labour voters down 10 per cent. The Yes camp knows it can’t afford to lose these (or any) people, so last weekend Alex Salmond announced plans to "reindustrialise" Scotland after a Yes vote. (Though how you do that using a currency – the pound – which has systematically undermined Scottish manufacturing exports for three decades, I don’t know).

Traditionally, Brown has struggled with “the national question”. In his introduction to The Red Paper on Scotland, published in 1975, he described the "oil-fired" rise of the SNP as "less an assertion of Scotland’s permanence as a nation" than "a response to Scotland’s uneven development". But by the time he had become Chancellor of the Exchequer in 1997, his analysis had reversed. In a pamphlet, New Scotland, New Britain, written ahead of the first Scottish parliamentary elections, he dismissed "the cause of separation" as a "misguided retreat from … modern forces of change".

During his 13 years in office Brown made various attempts to redefine "Britishness" as a progressive, 21st-century identity, but often ended up sounding like Enoch Powell. On a trip to Tanzania in 2005, he even told reporters that Britain shouldn’t be afraid to "celebrate" its colonial past.

With the referendum only three months away, Brown seems (again) to have re-evaluated his view of Scottish nationalism. In the Guardian, he identifies the "insecurity many Scots feel at the economic and social dislocation wrought by de-industrialisation" as a central component of the SNP’s recent success. "Of course, the quarrel Scots have is not with England", he adds, "but alongside England, with globalisation".

Here, however, Brown’s position simply collapses.Under his leadership, Labour didn’t "quarrel" with globalisation, it actively facilitated it. Between 1997 and 2010, the number of manufacturing jobs in Scotland fell from around 300,000 t0 under 190,000, while manufacturing output shrank by two per cent as a proportion of GDP. Compare that to the 57 per cent growth in Scottish business services and  finance over the same period.  

Having presided over the creation of a fiscally toothless Scottish parliament, Labour then encouraged an ever greater concentration of economic activity in London. Today, the capital accounts for a larger share of UK output than the English north-west, Yorkshire and Humber and the north-east combined. The imbalances in the British economy grew more severe during the Blair and Brown era, not less.

Then there’s Brown’s record on pay and workers’ rights. Labour may have introduced the minimum wage, but it did so at a disgracefully low level, ensuring Britain remains, in 2014, one of the lowest pay economies in the OECD. Indeed, the number of zero-hours contracts in Britain rose by tens of thousands during the last years of Labour government. This was in no small part due to the long-term decline of trade union representation among British workers, a problem aggravated by Labour’s refusal to repeal Thatcher-era anti-trade union laws.

So I find it difficult to take Brown seriously when he talks approvingly of "the social market" or tries to lump the SNP in with "anti-EU, anti-immigrant parties". The financial crisis wasn’t that long ago. I, for one, haven’t forgotten about Brown’s attempts to protect "British jobs for British workers".

As Brown himself seems to concede, it’s the structural issues that matter in this debate. We aren’t being asked to choose between competing identities. Brown obviously still believes Britain can be reclaimed for the left, for the welfare state, or for some amorphous "progressive vision". He has had plenty of time, including more than a decade in power, to give us a glimpse of what that Britain might look like. We’re still waiting.

James Maxwell is a Scottish political journalist. He is based between Scotland and London.

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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/