Health minister and Norfolk MP Norman Lamb has told the EDP that the country must accept taxes will be raised or more cuts made to cover the cost of caring for the elderly.

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North Norfolk MP Mr Lamb said a “mature” debate was needed and that government should discuss raising money by, for example, abolishing capital gains tax (CGT) relief given to families selling assets of deceased relatives or limiting the pensioners who receive benefits currently given to all.

Speaking from the Liberal Democrat conference in Brighton he said: “You only have to think about how public money is raised; either through a range of different taxes or coming from cuts to spending that already takes place. We do need to have a mature, open debate about that in terms of how we are going to pay for care.

“We also have to make sure the burden falls fairly and that the wealthiest pay their fair share.”

Currently anyone with assets greater than £23,250 covers the cost of their own care. But, struggling to meet the bill, 40,000 people are forced to sell their homes every year. Meanwhile, the state foots a huge bill supporting those with few assets.

The Dilnot Commission, tasked to solve the problem, suggested anyone with assets exceeding £100,000 should meet the first £35,000 cost of their own care, after which the state would pick up the estimated £1.7bn bill.

Mr Lamb said: “So the question is where do we find a new funding stream? The Institute for Fiscal Studies (IFS) has come up with eight or ten options. We need to open a discussion and we need to involve the public in that.”

Highlighting one possibility which could raise £600m annually, Mr Lamb said: “At the moment capital gains tax is not paid when an asset is released after death. If you sell the asset two weeks before death you pay capital gains tax, but not after.

“The IFS suggests you could change that situation so that CGT was paid on an asset sold after death as well as during a person’s lifetime. I’m not advocating that, it’s an example of one [possibility].”

The IFS report also says limiting pensioners getting benefits like free TV licences and the Winter Fuel Allowance could save a further £1.4bn.

Mr Lamb said he would seek to set up a process that would see a decision on how to fund care taken by a set date.

11 comments

  • How about we charter a few planes and export all the illegal immigrants and cling-ons who are bleeding the country and adding nothing to it? I have no problem paying taxes for the benefit of those who deserve it. Always the same, hit the good old worker to benefit the T******s.

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    Mr T

    Tuesday, September 25, 2012

  • talking up the cost of care for the elderly is talking up money for care homes and drug companies who profiteer. If this country stopped handing money to wealthy nations like China and India and to corrupt African states in the form of overseas aid we might be able to afford to look after more elderly people who during their working lives propped up the country paying high rates of income tax for umpteen years. Especially when current tax payers are having to sub those who are claiming benefits without having contributed a farthing.

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    Daisy Roots

    Monday, September 24, 2012

  • too many taxes.they are thinking of taxing carrier bags.madness.people will have to buy bags to use for household rubbish. too many people living too long.

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    bookworm

    Monday, September 24, 2012

  • why mention this possibilty if its not going to happen???? the answer is simple stop finding a cure for illnesses and save money on reseach that would stop people living longer that in turn would cut the cost of looking after so many elderly??? that the governments back door agenda really!!!!!

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    i am mostly wrong??

    Monday, September 24, 2012

  • Is this yellow Tory still privatising our NHS and still trying to take away our ambulances?

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    Jeffrey Osborne

    Monday, September 24, 2012

  • Idiot. Why not cut MP's expenses & pay and stop all foreign aid to pay for it !. Yet another useless MP totally out of touch .

    Report this comment

    "V"

    Monday, September 24, 2012

  • The whole of elderly care need to be looked at !! the care aspect is a joke..profit is more like it. Have you got a investigative journalist ?? You should get them on the case..you will have a shock !! I belive for the ammount of money being charged in some homes people could live cheaper in a hotel !!

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    musicman

    Monday, September 24, 2012

  • Mr Lamb was a hard working MP very focused on his constiuents prior to heading South.Nobody can be in two places at once and it is noticeable that as his TV appearances increase so does his ability to sound like a seasoned waffler. Raising taxes ? It is the creed of politicians who are clueless. Why not,for a change. look at the waste by central government. Billions are thrown away belonging to the EU. Billions are thrown away in foreign aid. Billions are being thrown away in maintaining our presence in Afghanistan , which is nothing more than a death trap for our service personnel. And the MPs expenses have apparently returned to around the level before the scandal broke. And it is interesting that Mr Lamb is a health minister as he once threatened to resign over Tory plans for the NHS

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    norman hall

    Monday, September 24, 2012

  • we give aid to rich countries who laugh at us and do not need it.this would pay for a lot of care.

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    bookworm

    Monday, September 24, 2012

  • Cant believe a word this man says. Remember, signing the pledge for No Tuition Fees Mr Lamb ? He has abandoned Norfolk now that he has a Govt position. I don't care how you dress it up or put spin on it Norman, I will not be voting for you or your party ever again.

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    Farquarson-Smythe

    Monday, September 24, 2012

  • This is just more old fashioned tax and spend proposals from a party that sometimes appears to be to the left of Labour. What is not reported here is the LibDems define rich as earning more than £50,000 pa. I am not in that category but the so called middle classes are getting hit all the time. We need lower taxes and less state spending. Governent is notorious for being wasteful with our money including foreign aid.

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    andy

    Monday, September 24, 2012

The views expressed in the above comments do not necessarily reflect the views of this site

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