We now have the greatest housing crisis since the war; but that crisis is welcomed and is being deliberately engineered by the Tories for one simple reason: the greater the crisis, the greater the profits. Pete Gilman of the Islington South Labour Party (personal capacity) looks at the Tories’ attacks on council housing.
There is no solution to the housing crisis that “does not start with a new, very large, very active council house building project.” – Jeremy Corbyn (the Guardian, 5th January 2016)
A right-wing Labour MP recently stated in a Tory newspaper that certain statements by Jeremy Corbyn made her physically sick. Significantly, she was not sickened by what Jeremy Hunt is doing to the NHS or what George Osborne is doing to the welfare state and public services, or by the Tory attacks on the trade unions.
The callous indifference of these “moderate” (i.e. right-wing) Labour MPs to the consequences and human suffering caused by the Tories tells us exactly what and who they represent. Furthermore, it seems that their focus is on overthrowing and undermining the democratically elected leader of the Labour Party and replacing him with one of their own, rather than fighting the Tories.
Similarly their caterwauling to the Tory newspapers about the cabinet reshuffle they themselves provoked has effectively and deliberately diverted attention away from the real important issues, such as the realities of the Tory housing bill.
Before Thatcher, 42% of the population lived in council housing; this was considered perfectly normal. Today it is less that 8% and those residing in council housing are constantly stigmatised. The Tories have waged a remorseless war against council housing – including the virtual ending of council house building and the introduction of the “right to buy” – not simply for ideological reasons, but because its destruction provides huge profits for private developers, big landlords, and major housing corporations.
We now have the greatest housing crisis since the war; but that crisis is welcomed and is being deliberately engineered by the Tories for one simple reason: the greater the crisis, the greater the profits.
The Tories have now launched a three-pronged attack on all council housing. Firstly, in order to to fund housing association (HA) tenants and offer them the “right to buy” their homes at hugely discounted prices, local authorities will be forced to sell off their “high value” housing. There is no connection between council and HA housing, and no reason why local authorities should have to subsidise the huge discounts awarded under HA “right to buy”. It is simply a means of attacking council housing.
As they have assessed “high value” at a price of £400,000, this means all newly built council housing as it is completed will have to automatically be sold off. Much more than just “high value” council housing will have to go, and if a local authority passes on a newly built council property to a family in desperate housing need, this could well be deemed a criminal offence.
Secondly, the Tories are introducing the “pay to stay tax”. Any person or family living in council property on a combined income of over £30,000 outside London, or £40,000 inside London, will have to pay market rents. Thus, for example, for a husband and wife both working, living in a council flat in Hackney, if their combined income is £40,000 their rent will rise from £130-150 a week to £450-600 a week. None of the money raised by increased rents will go to the local authority; all will go straight to the government to fund other projects like raising the threshold on inheritance tax.
Thirdly, the Tories plan to end all secure tenancies. Initially all council tenants will have their tenancy reviewed every 2-5 years and then may be forced into private rented accommodation. If the Tories can make this work, then there can be no doubt that may will certainly become will, causing appalling hardship and suffering to vast numbers of people, especially families with children. Meanwhile, it will be a bonanza for landlord companies, slum landlords, and estate agents.
Praise has been lavished on David Cameron following his statement that he will “refurbish” one hundred sink estates. Across London, council estates are being emptied out and then demolished to be replaced with luxury housing; Cameron’s “refurbishment” is simply an acceleration of this process. Can anyone seriously believe that any of these estates will be replaced with social housing? The tens of thousands of people moved out of these one hundred estates may be given a guarantee they can return, but they will be returning to housing where they must pay market rents.
The Tory objective is the complete and total abolition of all council housing – and indeed all social housing. The trade unions, the tenants movement, the Labour Party and the whole working class must unite and fight these vicious Tory plans. United we can win.
