Labour turns its fire on social care cuts

Age UK warns that spending on social care will be cut by 8.4 per cent this year.

The issue of social care is threatening to become yet another headache for the coalition. Despite a pledge by ministers to provide more funding, a survey by Age UK has found that English councils are planning to cut spending on social care for pensioners by £610m this year, or 8.4 per cent. Average net spending on those who need care is set to fall from £2,548 to £2,335. At a time when there are 800,000 older people who need care but do not receive it, a figure that is set to increase to one million by 2014, any suggestion of cuts is toxic for a government.

The care services minister, Paul Burstow, has already responded by arguing that the charity's figures "simply don't add up", claiming that Age UK has factored in only 35 per cent of a £1bn cash transfer from the NHS. He said: "Age UK's research does not give the full picture and they have seriously underestimated the amount of additional support for social care and older people in particular."

But Labour has gone on the attack this morning, warning that this is yet another area in which the coalition is cutting "too far and too fast". The shadow care services minister, Emily Thornberry, said: "Labour warned from the start that the Tories' plans to slash council budgets would mean deep cuts to care services and would see the most vulnerable in our society suffer."

Ed Miliband, who forged close links with charities whilst minister for the third sector, has recently proved adept at using third parties to advance his cause at PMQs. Age UK, which was voted charity of the year by MPs and Lords just a month ago, has provided the Labour leader with yet more evidence to buttress his argument against the cuts.

In the meantime, the debate over the long-term future of social care gathers intensity. The Dilnot Commission is set to recommend that individuals pay between £35,000 and £50,000 towards the cost of their care before the state steps in. This will allow the threshold for means-tested care to be raised from £23,250 to £100,000, ensuring that far fewer need to sell assets such as their family home. After the Tories' cynical "death tax" poster destroyed early hopes of a cross-party consensus, Miliband has made a "genuine and open" offer to try to reach agreement once the commission reports. But George Osborne's threat to "strangle the proposals at birth" and the war of words over cuts means that consensus may prove elusive again.

George Eaton is political editor of the New Statesman.

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Why Angela Merkel's comments about the UK and US shouldn't be given too much weight

The Chancellor's comments are aimed at a domestic and European audience, and she won't be abandoning Anglo-German relationships just yet.

Angela Merkel’s latest remarks do not seem well-judged but should not be given undue significance. Speaking as part of a rally in Munich for her sister party, the CSU, the German Chancellor claimed “we Europeans must really take our own fate into our hands”.

The comments should be read in the context of September's German elections and Merkel’s determination to restrain the fortune of her main political rival, Martin Schulz – obviously a strong Europhile and a committed Trump critic. Sigmar Gabriel - previously seen as a candidate to lead the left-wing SPD - has for some time been pressing for Germany and Europe to have “enough self-confidence” to stand up to Trump. He called for a “self-confident position, not just on behalf of us Germans but all Europeans”. Merkel is in part responding to this pressure.

Her words were well received by her audience. The beer hall crowd erupted into sustained applause. But taking an implicit pop at Donald Trump is hardly likely to be a divisive tactic at such a gathering. Criticising the UK post-Brexit and the US under Trump is the sort of virtue signalling guaranteed to ensure a good clap.

It’s not clear that the comments represent that much of a new departure, as she herself has since claimed. She said something similar earlier this year. In January, after the publication of Donald Trump’s interview with The Times and Bild, she said that “we Europeans have our fate in our own hands”.

At one level what Merkel said is something of a truism: in two year’s time Britain will no longer be directly deciding the fate of the EU. In future no British Prime Minister will attend the European Council, and British MEPs will leave the Parliament at the next round of European elections in 2019. Yet Merkel’s words “we Europeans”, conflate Europe and the EU, something she has previously rejected. Back in July last year, at a joint press conference with Theresa May, she said: “the UK after all remains part of Europe, if not of the Union”.

At the same press conference, Merkel also confirmed that the EU and the UK would need to continue to work together. At that time she even used the first person plural to include Britain, saying “we have certain missions also to fulfil with the rest of the world” – there the ‘we’ meant Britain and the EU, now the 'we' excludes Britain.

Her comments surely also mark a frustration born of difficulties at the G7 summit over climate change, but Britain and Germany agreed at the meeting in Sicily on the Paris Accord. More broadly, the next few months will be crucial for determining the future relationship between Britain and the EU. There will be many difficult negotiations ahead.

Merkel is widely expected to remain the German Chancellor after this autumn’s election. As the single most powerful individual in the EU27, she is the most crucial person in determining future relations between the UK and the EU. Indeed, to some extent, it was her intransigence during Cameron’s ‘renegotiation’ which precipitated Brexit itself. She also needs to watch with care growing irritation across the EU at the (perceived) extent of German influence and control over the institutions and direction of the European project. Recent reports in the Frankfurter Allgemeine Zeitung which suggested a Merkel plan for Jens Weidmann of the Bundesbank to succeed Mario Draghi at the ECB have not gone down well across southern Europe. For those critics, the hands controlling the fate of Europe are Merkel’s.

Brexit remains a crucial challenge for the EU. How the issue is handled will shape the future of the Union. Many across Europe’s capitals are worried that Brussels risks driving Britain further away than Brexit will require; they are worried lest the Channel becomes metaphorically wider and Britain turns its back on the continent. On the UK side, Theresa May has accepted the EU, and particularly Merkel’s, insistence, that there can be no cherry picking, and therefore she has committed to leaving the single market as well as the EU. May has offered a “deep and special” partnership and a comprehensive free trading arrangement. Merkel should welcome Britain’s clarity. She must work with new French President Emmanuel Macron and others to lead the EU towards a new relationship with Britain – a close partnership which protects free trade, security and the other forms of cooperation which benefit all Europeans.

Henry Newman is the director of Open Europe. He tweets @henrynewman.

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