Will the coalition waste this chance to reform social care?

Osborne must not be allowed to strangle Dilnot's proposals at birth.

It was as long ago as 1997 that Tony Blair told the Labour Party conference: "I don't want [our children] brought up in a country where the only way pensioners can get long-term care is by selling their home." Nearly 14 years later, however, more than 20,000 pensioners do exactly this every year.

The publication of the Dilnot Report provides the coalition with a chance to succeed where Labour failed and reach agreement on a long-term solution to the care crisis. As expected, Dilnot, the former director of the IFS, has proposed a cap of around £35,000 on care costs (the report suggests any figure between £25,000 and £50,000 would be acceptable), and a rise in the means-tested threshold from £23,250 to £100,000. Since the cap does not take into account the cost of food and accommodation, Dilnot has also called for a separate cap of between £7,000 and £10,000 on these "hotel costs".

His proposals have been erroneously portrayed by some as another "tax on the middle classes". But the reverse is true. Under Dilnot's plan, the middle classes will pay less (the average bill is currently £50,300, with one in five facing costs of £100,000), while the state pays more. A £50,000 cap would cost the government £1.3bn, while a £25,000 cap would cost £2.2bn.

It's for this reason that some are already suggesting that the government, in the form of George Osborne, will strangle the proposals "at birth". One cabinet minister tells Benedict Brogan: "It's DOA, there's no doubt about it ... At a time like this we simply can't afford it. We'll have to return to this issue at a future date." To which one can only reply: hogwash. Any new system is unlikely to come into effect until 2015, by which time, if Osborne's calculations are to believed, much of the deficit will have been eradicated. Short-term fiscal considerations must not act as a barrier to long-term reform. The Lib Dems' imaginative proposal to introduce capital gains tax on profits from first homes above £1m is just one example of how the state could raise more from the asset rich.

The coalition also has rare opportunity to forge a cross-party consensus on this issue. The last attempt to do so was, of course, destroyed by the Tories, who cynically attacked Andy Burnham's proposed compulsory levy as a "death tax". Despite the Tories' electioneering, however, Ed Miliband, has made a "genuine and open" offer to reach agreement. It is one David Cameron must take. Along with Miliband, every charity in the land is agreed that delay is no longer an option.

Asked earlier today what his response would be if the proposals were "kicked into the long grass", Dilnot rightly replied: "Astonishment". The longer ministers prevaricate, the worse the crisis will get. If the Lib Dems want a chance to prove that they can exercise real influence on government policy, here it is.

George Eaton is political editor of the New Statesman.

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It's easy to see where Berlin is being rebuilt – just hit the streets

My week, from walking the streets of Berlin to class snobbery and the right kind of gentrification.

Brick by brick, block by block, the people are rebuilding the city once called Faust’s Metropolis. To see it clearly, put your boots on. One of the most bracing walks starts by the Gethsemane Church, which served as a haven for dissenters in the last days of the GDR and takes you down ­towards the Hackescher Markt.

Here, in what is still the eastern half of a divided city that wears its division more lightly, is a Berlin experience both old and new. In three decades of frequent visits, it has been fascinating to note how much this part of town has changed. Even a decade ago these streets were rundown. With crumbling buildings showing bulletholes, it wasn’t hard to imagine what the place looked like in 1945. Now there are lilacs, blues, and yellows. Cafés, bars and restaurants abound, serving the young professionals attracted to the city by cheap rents and a renewed sense of community.

 

Breaking the fourth wall

Looking north along Schliemannstraße, you’ll find a delightful vista of well-tended balconies. It’s a pleasant place to live, notwithstanding the gaggle of grotesques who gather round the corner in the square. On Kastanienallee, which forms the second leg of the walk, an old city feels young. It’s a kind of gentrification but the right kind. There’s more to eat, to drink, to buy, for all.

Berlin, where Bertolt Brecht staged his unwatchable plays, was supposed to have been transformed by a proletarian revolution. Instead, it has been restored to health by a very middle-class one. Germany has always had a well-educated middle class, and the nation’s restoration would have impossible without such people. The irony is delicious – not that irony buttered many parsnips for “dirty Bertie”.

 

The new snobbery

The British Museum’s survey of German history “Memories of a Nation” is being presented at the Martin-Gropius-Bau as “The British View”. Germans, natürlich, are curious to see how we observe them. But how do they see us?

A German friend recently in England  said that the images that struck him most forcibly were the tins of food and cheap booze people piled up in supermarkets, and the number of teenage girls pushing prams. Perhaps Neil MacGregor, the former director of the British Museum who will shortly take up a similar role here at the new Humboldt Forum, may turn his attention to a “German View” of the United Kingdom.

There’s no shortage of material. In Schlawinchen, a bar that typifies Kreuzberg’s hobohemia, a college-educated English girl was trying to explain northern England to an American she had just met. Speaking in an ugly modern Mancunian voice that can only be acquired through years of practice (sugar pronounced as “sug-oar”), she refer­red to Durham and York as “middle class, you know, posh”, because those cities had magnificent cathedrals.

When it comes to inverted snobbery, no nation can match us. To be middle class in Germany is an indication of civic value. In modern England, it can mark you as a leper.

 

Culture vultures

The Humboldt Forum, taking shape by the banks of the Spree, reconsecrates the former site of the GDR’s Palace of the Republic. When it opens in 2018 it will be a “living exhibition”, dedicated to all the cultures of the world. Alexander von Humboldt, the naturalist and explorer, was the brother of Wilhelm, the diplomat and philosopher, whose name lives on in the nearby university.

In Potsdamerplatz there are plans to build a modern art museum, crammed in between the Neue Nationalgalerie and the Philharmonie, home to the Berlin Philharmonic. Meanwhile, the overhaul of the Deutsche Staatsoper, where Daniel Barenboim is music director for life, is likely to be completed, fingers crossed, next autumn.

Culture everywhere! Or perhaps that should be Kultur, which has a slightly different meaning in Germany. They take these things more seriously, and there is no hint of bogus populism. In London, plans for a new concert hall have been shelved. Sir Peter Hall’s words remain true: “England is a philistine country that loves the arts.”

 

European neighbours

When Germans speak of freedom, wrote A J P Taylor, a historian who seems to have fallen from favour, they mean the freedom to be German. No longer. When modern Germans speak of freedom, they observe it through the filter of the European Union.

But nation states are shaped by different forces. “We are educated to be obedient,” a Berlin friend who spent a year at an English school once told me. “You are educated to be independent.” To turn around Taylor’s dictum: when the English speak of freedom,
they mean the freedom to be English.

No matter what you may have heard, the Germans have always admired our independence of spirit. We shall, however, always see “Europe” in different ways. Europe, good: we can all agree on that. The European Union, not so good. It doesn’t mean we have to fall out, and the Germans are good friends to have.

 

Hook, line and sinker

There are fine walks to be had in the west, too. In Charlottenburg, the Kensington of Berlin, the mood is gentler, yet you can still feel the city humming. Here, there are some classic places to eat and drink – the Literaturhauscafé for breakfast and, for dinner, Marjellchen, a treasure trove of east Prussian forest delights. Anything that can be shot and put in a pot!

For a real Berlin experience, though, head at nightfall for Zwiebelfisch, the great tavern on Savignyplatz, and watch the trains glide by on the other side of Kantstraße. Hartmut Volmerhaus, a most amusing host, has been the guvnor here for more than 30 years and there are no signs that his race is run. The “Fisch” at twilight: there’s nowhere better to feel the pulse of this remarkable city. 

This article first appeared in the 01 December 2016 issue of the New Statesman, Age of outrage