The former Shadow Chancellor of the Exchequer says rent controls are a vital part of a four-pronged ‘Radical Recovery Programme’.

John McDonnell has outlined the approach ahead of tomorrow’s Spring Statement by Chancellor Rishi Sunak.

McDonnell, writing on the Labour List website, says: “In many parts of the country, the largest single expense is housing costs – especially for those in the private rented sector. 

“Last October, ahead of the Spending Review I called for a rent freeze for all. I’m pleased to see London mayor Sadiq Khan is now calling for the same in London.

“We also need to scrap the benefit cap, which is causing social cleansing in our cities. And, of course we need a mass programme of council housing – zero carbon council housing.”

He adds: “In every other period of history when inflation combines with wage cuts, and people struggle to pay for the basics in life, confronting a real cost-of-living crisis, that’s when people get angry. 

“It’s when they see the system is failing them. It’s when they demand change and are increasingly open to radical change.

“All those who want radical change, and that should include the Labour Party, must not underestimate the potential of this moment. This is no time for half-hearted measures. We need a Radical Recovery Programme.”

His four pronged approach includes, in addition to rent controls, an increase in incomes. He says: “We demand that every worker gets at least an inflation proofed pay rise … All benefits and pensions need to be uprated by eight per cent – where inflation is forecast to peak – and we should immediately restore the £20 Universal Credit uplift and extend that to those on legacy benefits, like Employment and Support Allowance and address the scandal of the poverty level of Carers Allowance.”

He also wants Price Controls and a Profits Cap – “”The government must act to cap bills now – and there is no better time to press for the nationalisation of the [energy] sector so it is run for people, not profit … We also have to cap other key costs where we can – especially where that matches our climate commitments. So I welcome Labour mayor Andy Burnham regulating the buses in Greater Manchester and, as he gets control, capping bus fares at £2 for an adult and child fares at £1.”

McDonnell’s final area of action, alongside rent controls, is investment for green growth. “In the 2019 election … I launched the Warm Homes initiative to insulate 27m, create hundreds of thousands of jobs, reduce bills and save lives.The government should also be investing on a historic scale in publicly-owned wind, wave and solar power.”