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I'm joined now by David ual. -- Gaulk. The Tories had once abandoned | :00:10. | :00:25. | |
these proposals. Much of the benefits of that would go to those | :00:26. | :00:29. | |
inheriting the largest estates. And the second point is that the hope | :00:30. | :00:34. | |
was that a cap would stimulate a private insurance products that | :00:35. | :00:37. | |
would, if you like, fill the gap. There isn't really any sign that | :00:38. | :00:41. | |
those products are emerging. Without a cap you won't get one at all, now, | :00:42. | :00:47. | |
that's Chelsea. It doesn't look -- that's clear now. It doesn't like | :00:48. | :00:54. | |
that this proposal is fairer. It provides more money for social care. | :00:55. | :00:58. | |
It's right that we address those big, long-term issues. Social care | :00:59. | :01:02. | |
is one of those. Getting a good Brexit deal is one of those, perhaps | :01:03. | :01:06. | |
the most important. What I think this demonstrates is that Theresa | :01:07. | :01:11. | |
May has an ambition to lead a Government that addresses big - | :01:12. | :01:14. | |
Let's stick with social care. Under what you're proposing, if you have | :01:15. | :01:18. | |
assets, including your home of over ?100,000 you have to pay for all | :01:19. | :01:22. | |
your social care costs. Is that fair? I think it is right that for | :01:23. | :01:30. | |
the services provided to you, that that's paid out of your assets, | :01:31. | :01:35. | |
subject to two really important qualifications. First of all, that | :01:36. | :01:40. | |
you shouldn't have your entire estate wiped out. At the moment if | :01:41. | :01:43. | |
you're in residential care, it can be wiped out to ?23,000. If you're | :01:44. | :01:50. | |
in Domiciliary Care it can be wiped out to ?23,000 plus your housing | :01:51. | :01:53. | |
assets. I don't think your assets should be wiped out. That won't | :01:54. | :01:56. | |
happen under our plans. I don't think anybody should be forced to | :01:57. | :02:00. | |
sell their house in their lifetime if they or their spouse needs | :02:01. | :02:04. | |
long-term care. Again, we've protected that within the proposals | :02:05. | :02:08. | |
that we have set out. But the state will basically take a chunk of your | :02:09. | :02:14. | |
house when you die and you sell. In essence, it's a stealth inheritance | :02:15. | :02:20. | |
tax of 100% on everything above ?100,000. We have two very important | :02:21. | :02:24. | |
protections. I've included that. We have two important protections. It's | :02:25. | :02:28. | |
a stealth inheritance tax. We have to face up as a country that there | :02:29. | :02:33. | |
are significant costs that we face as a country in terms of health and | :02:34. | :02:39. | |
social care. Traditionally, politicians don't address those | :02:40. | :02:42. | |
issues, particularly during election campaigns. I think it's enormously | :02:43. | :02:48. | |
to Theresa May's credit that we are being straightforward with the | :02:49. | :02:51. | |
British people saying we face this long-term challenge. You know our | :02:52. | :02:53. | |
whole manifesto was about the big challenges that we face. One of | :02:54. | :02:58. | |
those is intergenerational fairness, one of which was delivering a strong | :02:59. | :03:02. | |
economy and making sure that we can do that. But in the end, someone is | :03:03. | :03:08. | |
going to have to pay for this. It's going to be a balance between the | :03:09. | :03:12. | |
general taxpayer and those receiving the services. We think we've struck | :03:13. | :03:16. | |
the right balance with this set of proposals. But it's entirely on the | :03:17. | :03:20. | |
individual. People watching this programme if they've got a fair | :03:21. | :03:26. | |
amount of assets, not massive, including the home, they will need | :03:27. | :03:30. | |
to pay for everything themselves until their assets are reduced to | :03:31. | :03:34. | |
100,000. It's not a balance, everything is on the individual. At | :03:35. | :03:38. | |
the moment for those in residential care, which is a fairly substantial | :03:39. | :03:41. | |
number, they have to pay everything until they're down to their last | :03:42. | :03:47. | |
?23,000. They will now face more won't they? For those in residential | :03:48. | :03:52. | |
care are seeing their protection go up by four times as much. So I think | :03:53. | :03:57. | |
that is eliminating an unfarnings. Why should those in residential care | :03:58. | :04:02. | |
be in a worse position than those receiving Domiciliary Care. That | :04:03. | :04:05. | |
money has got to come from somewhere. We're setting out a | :04:06. | :04:09. | |
proper plan for it. I also make the point that we are more likely to be | :04:10. | :04:14. | |
able to have a properly functioning social care market if we have a | :04:15. | :04:18. | |
strong economy, to have a strong economy, we need to deliver a good | :04:19. | :04:21. | |
deal on Brexit and only Theresa May is capable of doing that. You've | :04:22. | :04:25. | |
claimed that before. If you have - It's a very important point. If you | :04:26. | :04:31. | |
have a heart attack in old age, the NHS will take care of you. If you | :04:32. | :04:35. | |
have dementia you have to pay yourself. Is that fair? It's already | :04:36. | :04:39. | |
the case that if you have long-term care costs, as I say, if you're in | :04:40. | :04:45. | |
residential care, you pay for all of it till the last ?23,000. If you are | :04:46. | :04:50. | |
in Domiciliary Care, excludeing your housing assets, all your other | :04:51. | :04:56. | |
assets get used up until you're down to ?23,000 a year. And I think it is | :04:57. | :05:03. | |
right at this point that a party that aspires to run this country for | :05:04. | :05:06. | |
the long-term, to address the long-term challenges that we have as | :05:07. | :05:11. | |
a country, to be clear that we need to deliver this. Because if it's not | :05:12. | :05:15. | |
paid for this way, if it's going to fall on the general taxpayer, you | :05:16. | :05:19. | |
know, people who already feel hard bresed by the amount of income tax, | :05:20. | :05:23. | |
national insurance contributions VAT that they pay, frankly, we have to | :05:24. | :05:27. | |
say to them, those taxes will go up if we don't address it another way. | :05:28. | :05:31. | |
They might go up any way. The average house price in your part of | :05:32. | :05:35. | |
the country, Hertfordshire, is just shy of ?430,000. Have you told your | :05:36. | :05:40. | |
older constituents that they may have to spend ?300,000 of their | :05:41. | :05:43. | |
assets on social care before the state steps in to help? Of course, | :05:44. | :05:49. | |
as I said earlier, nobody will be forced to pay during their lifetime. | :05:50. | :05:53. | |
Nobody will be forced to sell their houses. We're providing that | :05:54. | :05:58. | |
protection because of the deferred payment. That makes it a kind of | :05:59. | :06:02. | |
death tax, doesn't it? The reality is - Which is what you used to rail | :06:03. | :06:06. | |
against. Well, what it is is people paying for the services they have | :06:07. | :06:12. | |
paid out of their assets. But with that very important protection that | :06:13. | :06:16. | |
nobody is going to be wiped out in the way that has happened up until | :06:17. | :06:21. | |
now down to the last 23,000. Your old boss George Osborne at the | :06:22. | :06:26. | |
Treasury called it a death tax. You are proposing a stealth inheritance | :06:27. | :06:29. | |
tax. No Labour's proposals were very different. It's the same effect. | :06:30. | :06:33. | |
Labour's was hitting everybody with an inheritance tax. What we're | :06:34. | :06:40. | |
saying is that there is a state contribution, state protection, but | :06:41. | :06:43. | |
that the public who are receiving the services will have to pay for it | :06:44. | :06:50. | |
out of assets which in many cases have grown substantially. Which they | :06:51. | :06:54. | |
may now all lose to social care. I'd also say that people in | :06:55. | :06:57. | |
Hertfordshire pay a lot in income tax and national insurance | :06:58. | :07:00. | |
contributions and VAT and you know, this is money that is going to have | :07:01. | :07:04. | |
to come from somewhere. They're now going to pay a lot of tax and still | :07:05. | :07:08. | |
have to pay for their social care. Let's turn to immigration. You | :07:09. | :07:13. | |
promised to get net migration down to 100,000 in 2010. You failed. You | :07:14. | :07:16. | |
promise again in 2015. You're failing again. Why should voters | :07:17. | :07:23. | |
trust you a third time? It's very clear that only the Conservative | :07:24. | :07:27. | |
Party has an ambitious to control immigration and to bring it down. | :07:28. | :07:30. | |
There are - An ambition you've failed to deliver. There are factors | :07:31. | :07:35. | |
that come into place, for example, a couple of years ago, we were going | :07:36. | :07:39. | |
through a pyre yod -- period where the UK was creating huge numbers of | :07:40. | :07:42. | |
jobs but none of our European neighbours were doing anything like | :07:43. | :07:46. | |
it. Not surprisingly that feeds through into the immigration numbers | :07:47. | :07:52. | |
that we see. But it is right that we have that ambition because I don't | :07:53. | :07:56. | |
believe it is sustainable that we can have hundreds of thousands net | :07:57. | :08:01. | |
migration year after year after year and only Theresa May and the | :08:02. | :08:04. | |
Conservative Party are willing to try to address that. It's gone from | :08:05. | :08:08. | |
being a target to an ambition, I'm pretty sure in a couple of years it | :08:09. | :08:13. | |
will be an aspiration, an untimed aspiration. Is net migration now | :08:14. | :08:19. | |
higher or lower than when you came to power in 2010? I think it's | :08:20. | :08:22. | |
higher at the moment. Let's look at the figures. | :08:23. | :08:28. | |
You are right, it is higher. After six years in power, promising to get | :08:29. | :08:38. | |
a 20 100,000, it is higher. If that's an ambition, you haven't | :08:39. | :08:43. | |
succeeded. We have to accept a number of factors, the UK economy is | :08:44. | :08:49. | |
growing and creating a lot of jobs, that is drawing people. We are | :08:50. | :08:56. | |
outperforming a lot of other countries anyway I don't think we | :08:57. | :09:00. | |
could have predicted in 2010. That is one of the factors that has drawn | :09:01. | :09:04. | |
that. If you look at a lot of the steps we have taken over the course | :09:05. | :09:09. | |
of the last seven years, dealing with bogus students, for example, | :09:10. | :09:14. | |
tightening up on a lot of rules. It would have gone up by a lot more had | :09:15. | :09:23. | |
we not taken those steps. But we can't forever, it seems to me, have | :09:24. | :09:28. | |
a net migration numbers at the hundreds of thousands. If we get | :09:29. | :09:31. | |
that good a Brexit deal, one of the things we can do is tighten up in | :09:32. | :09:38. | |
terms of access here. From the EU. You have always had control of | :09:39. | :09:43. | |
non-EU migration, you control immigration from outside the EU. | :09:44. | :09:46. | |
Have you even managed to get that below 100,000? No doubt he will | :09:47. | :09:53. | |
present new numbers. I don't think we have. You have got it down a bit | :09:54. | :09:59. | |
from 2010. Even non-EU migration is still a lot more than 100000 and | :10:00. | :10:05. | |
that is the bit you control, 164,000 on the latest figures. There's no | :10:06. | :10:09. | |
into voters when we get control over EU migration we will get a time when | :10:10. | :10:13. | |
the big thing you have control over you fail to get that down into the | :10:14. | :10:24. | |
tens of thousands. And nothing is the only answer, but your point is | :10:25. | :10:26. | |
the general trend has gone up. Actually, non-EU grew migration we | :10:27. | :10:29. | |
have brought down over the last two years. Not anywhere near your | :10:30. | :10:33. | |
100,000 target. We have more tools available to us following Brexit. At | :10:34. | :10:39. | |
this rate it would be around 20 or 30 when you get non-EU migration | :10:40. | :10:44. | |
down. I've come back to the point I've made in the last six or seven | :10:45. | :10:49. | |
years, particularly in the last for five, we have seen the UK jobs | :10:50. | :10:55. | |
market growing substantially. You only promised the net migration | :10:56. | :10:59. | |
targets because you didn't think you would be running the economy well? I | :11:00. | :11:05. | |
don't think anyone expected us to create quite a number of jobs we | :11:06. | :11:08. | |
have done over the last six or seven years. At a time when other European | :11:09. | :11:15. | |
countries haven't. George Osborne says your target is economic and the | :11:16. | :11:20. | |
illiterate. Here's my old boss, but I disagree with him on that point. | :11:21. | :11:26. | |
The reason I say that is both looking at the economics and also | :11:27. | :11:29. | |
the wider social impact, I don't think it is sustainable for us to | :11:30. | :11:35. | |
have hundreds of thousands year after year after year. UID Chief | :11:36. | :11:41. | |
Secretary, you no promising spending on health will be 8 billion higher | :11:42. | :11:44. | |
in five years's time than it is now. How will you pay for that? From a | :11:45. | :11:51. | |
strong economy. Two years ago, we had a similar conversation because | :11:52. | :11:54. | |
we at that point said we would increase spending 8 billion. We are | :11:55. | :12:00. | |
more than on track to deliver it because it's a priority area for us. | :12:01. | :12:04. | |
Where will the money come from? It will be a priority area for us. You | :12:05. | :12:10. | |
haven't been able to show us a revenue line for this 8 billion will | :12:11. | :12:15. | |
come from. But we have a record of making promises of spending more on | :12:16. | :12:18. | |
the NHS and delivering it. If one thing I would say is that the only | :12:19. | :12:23. | |
way you can spend more money on the NHS is if you have a strong economy | :12:24. | :12:29. | |
and the biggest risk... Where were the 8 billion come from? Because you | :12:30. | :12:35. | |
are noticing that perhaps you may increase some taxes, people are | :12:36. | :12:40. | |
right to be suspicious. You won't tell us with this 8 billion will | :12:41. | :12:44. | |
come from but you have to jimmy lock off on tax rises. Andrew, a strong | :12:45. | :12:49. | |
economy is key to delivering more NHS money. The big risk to a strong | :12:50. | :12:56. | |
economy would be a bad Brexit which Jeremy Corbyn would deliver. And we | :12:57. | :13:00. | |
have a record of putting more money into the NHS. And that past | :13:01. | :13:05. | |
performance I think we can take forward. Thank you for joining us, | :13:06. | :13:06. | |
David Gauke. | :13:07. | :13:17. |