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Prominent Labour MP wants rent controls to aid economic recovery

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. 

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“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.”

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  • George Dawes

    Mr 3 houses hypocrite ranting again

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    John McDonnell? No need to bother reading that then.

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    The most disturbing thing is people voting for this looney. How anyone on 85k a year plus expenses can claim to be a man of the people is quite staggering!

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    Don’t know what point he’s making about rent being bigger cost. I would except that to be the case somewhere to live, try B&B, AirBnB or a hotel see what it will cost, they can stay for a month in mine = to 3 nights in a Motel. Rent cap is the surest way to prevent recovery, cap on profit will he also have a cap on losses or has he got a fools cap, his London mate Mayor shouldn’t be in a job holding everyone to ransom taking £400. from our C/tax and we have no say plus a levy’s on anything he likes. Maybe he should have stayed in L’pool where those kind of Policy’s held that City back for years and strikes every other week. I was 55ft down a shaft diverting sewer under Mersey Tunnel when they started throwing things down to stop me working calling me a scab, although my section was nothing to do with them. I think Mr McDonnell has brought that mind set with him.

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    It's useful to be reminded of socialism and Corbynism. And maybe how lucky we were to escape from having Nr McDonnell as Chancellor. Even though the current lot don't inspire!

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    I don't think the energy cap is working. What with all the companies going bust and the prices rising anyway. Now with less competition it's getting worse. How will rent caps be any better?

  • George Dawes

    As bad as Boris is and he is pretty awful , imagine this nut job in charge …. Shivers

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    Oh so the government can just decide how much everything costs. They can decide we all earn more, and have lower bills, that scarce resources should cost peanuts. Supply and demand isn’t a thing anymore because it’s inconvenient?

    I miss the days when the tories were actually conservative. Now we just have a choice of 2 or 3 different coloured brands of socialism.

  • girish mehta

    That’s why lost elections will
    His looney ideas . People won’t vote for labour till they really care for working people rather than lining their pockets and announcing policies which are unworkable, why would landloard borrow to hilt and take on debts and pay higher taxes if there no return on their investment. Tell wannabe freeloaders that they can live for free and have good life as long as they tax the landlords. It is a fantasy policy which will eventually come to bite in their back sides.
    Expect civil unrest, riots, and war when these greedy politicians cannot fuifill their promises. More homeless on the way and these greedy politicians will have to pick up the tab when landlords exit the market.the government had failed to provide councils to freeloaders. So they sold the house to their Tenent’s and transferred the debts. Rest wow given to housing association at discounted price now they are in trouble and they expect landlords to house these people for discounted and pay higher taxes and no returns . Not going to happen land loards will reinvest elsewhere. Build more houses to start with and understand the issues rather than media telling you and politicians jumping on bandwagon to get their attention on media with unworkable failed policies and a new bright idea. Ok is supposed to be one of the richest country yet haven’t been able to solve basics like housing, health, and education. These are go to issues which they love to fool and lead voters into false paradise while pocketing millions for themselves.

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