View more on these topics

David Blunkett: Tell clients things will be alright in the end

Former work and pensions secretary David Blunkett has urged advisers to keep telling clients to think long-term, and that the worst of the uncertainty may soon be behind us.

Speaking at the Money Marketing Interactive conference on Thursday, Blunkett reflected on the peculiar state of current affairs, how we got here and where we go from here.

Blunkett, who also spent time as home secretary and education secretary, acknolwdged that “the world looks awful from where we stand at the moment”.

However, he added that “nothing is ever as bad or as good as we think it is”.

He said: “We will get there, we will pull it of, we will restore our reputation as a country. And your advice, if I can be as bold, must be for people to look to the long term, to see that things can turn around, and we will get it right in the end.”

Blunkett said that we are now in the period of unknown unknowns.

“None of us can predict what’s going to happen in the next weeks. When this conference was first set in trail, it was presumed that last Friday we would have left the European Union. It’s now still uncertain as to whether we will.”

Blunkett was clear to identify the culprit of the uncertainty: his “own political class”.

“The decision to have a referendum was a catastrophe. The debate in the referendum was appalling. The immediate aftermath was an opportunity to get a grip, and that went pear-shaped with the extraordinary decision of the prime minister’s to call election.”

“To mess up the election particularly messed up on social care actually, which relates to some of the advice you will be giving to people.”

Blunkett offered his long-term vision by laying out forms of economic injections, that were used in the past: payment protection insurance compensation, quantitative easing and pension freedoms.

Blunkett’s recipe for long-term growth was infrastructure projects, where he saw a chance for fixing the divide between the regions in the country.

“Apart from London and the South-East, the rest of the country does’t compare with the best functioning and the highest productivity growth areas of Europe – in fact the rest of the world.”

He said that to achieve this, a public-private partnership would be needed – an equivalent of German re-unification, that reaches out to regions and dramatically changes the gross value add of labour and productivity in the rest of the UK.

He said: “With expansion of Heathrow, the opportunities are enourmous if we can take them and spread them across Britain so it’s not just overheating London and the South once again.”

Recommended

Money-Cash-Coins-GBP-Pounds-UK-700x450.jpg
106

How much are advisers charging for pension transfers?

Defined benefit pension transfer charges are being put under the microscope again as the regulator turns over more potential conflicts of interest. With the British Steel Pension Scheme the latest to dominate headlines and the FCA ready to interrogate further as it extends its review to include all firms authorised to give pension transfer advice, […]

Money and umbrella - thumbnail
21

FCA to grant firms PI flexibility after FOS limit increase

The FCA will consider the individual circumstances for advice firms who cannot get their personal indemnity insurance re-confirmed before the 1 April increase in the maximum compensation limit for Financial Ombudsman Service claims, Money Marketing has been told. Monday will see an increase in the FOS’s limit from £150,000 to £350,000. Confirmation of the changes […]

20

UFPLS vs flexi-access drawdown: drawdown wins by a country mile

If there is a straight choice between flexi-access pension drawdown and uncrystallised funds pension lump sum, flexi-access wins by a country mile in virtually every situation. The Treasury prefers to pronounce UFPLS as “uffplus”, presumably because the plus syllable lends a positive quality to this otherwise ridiculous expression. Most pension professionals prefer to pronounce it […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. It never ceases to amaze me that these people (ex MP’s and bureaucrats) speak so much sense and yet….when they are in power and could make a real difference they take on a persona of a snaggle toothed hillbilly

    Is there something in the tea and biscuits that makes the distinction of their arse and elbow unfathomable ?

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com