Posted in Housing

Fall in construction output shows Osborne “recovery” has lost momentum

8075194_sThe latest economic figures revealing a shock fall in construction output of more than 1% between April and May this year are alarming, but might be brushed off as an isolated quirk if all the other evidence pointed the other way. But it doesn’t.

The construction slowdown is matched by an unexpected slump in factory output as well as a worrying widening of an already bloated trade deficit. The latter reflects the dampening effect on UK exports as the pound has steadily strengthened over the last year, reaching the highest level (£1=$1.70) for 5 years. UK export prospects are further deflated by the way the eurozone is mired in seemingly endless austerity because the major debtor countries – Greece, Portugal, Spain, Italy – cannot while locked inside the single currency achieve the growth necessary to cut their deficits when their debts are still rising.

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The Coalition’s Last Stand

Black RodDennis Skinner summed up the country’s mood when he declared the recent Queen’s speech to be the “Coalition’s last stand.” The Government set out their agenda for the next 12 months leading up to the general election. It was a missed opportunity, lacking the ideas, policy and ambition that is required to meet the challenges we face, neither did it address the clear concerns and disconnect that was present during the local and European election.

We must face facts, our politics is broken when people no longer believe voting can make a difference to their lives. We needed a Queen’s Speech that set a new direction and offered hope but instead there was no policy to tackle the cost of living crisis, make work pay, or rebalancing the economy to allow every to share the benefits of growth. Unfortunately, we got more of the same from a rudderless Government who are planning when it is best to break up the Coalition in order to maximise their electoral chances.

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Housing: a modest proposal

Green plastic monopoly houses, by 123rf.comIn launching Labour’s local election campaign last week Ed Miliband decided to emphasise the need for reform of private renting and tackling the cost of living crisis. In raising this issue he has triggered a welcome debate on housing in Britain.

House prices in England are rising fast and in London faster than ever — so much so that those lucky enough to own a property in the capital have seen house values rise by an average of £63,000 — about three times the earnings of the average Londoner. By definition, this is economic madness. Continue reading →

State ownership of rail is only the start

bbbr1As the 31 Labour parliamentary candidates are demanding in their letter to Miliband, the case for returning rail to the public sector after the botched privatisation of 1996 is overwhelming. Private ownership has produced for the UK the highest fares in Europe, extensive overcrowding on commuter lines because of giving priority to dividends for shareholders over investment and quality service for the public, and the need for public subsidies to be doubled to £4bn a year.

Renationalisation won’t cost taxpayers a penny because the existing franchises fall due, they can simply not be renewed but transferred to the public sector. The electorate wants this by 55% to 18%, and it would be a significant factor in reducing the cost-of-living crisis for the travelling public. But this is just the harbinger for a much bigger change. Continue reading →

Tories scrap affordable hones to protect house-builders’ profits

Green plastic monopoly houses, by 123rf.comThe Tories have a clever, though nasty, way of doing unpopular things.

First they soften up public opinion by saying the current policy can’t be afforded any more. The Social Fund is too expensive, onshore windpower is too costly, affordable houses can’t be afforded any more.

Then they try to find plausible reasons for cutting back, even though they still claim they’re maintaining the policy. Thus the Social Fund money is delegated to local councils (though the overall pot is substantially cut back) because they have better knowledgeof local needs. Onshore windpower is squeezed by stiffening planning consents because too many people in the countryside are objecting (usually rich landowners). And affordable housing targets are scaled back because it’s hardly economic to build them in an era of austerity (building contractors can’t make enough profit). Continue reading →