Editorial: Labour “fiddles” with the Cost of Living

When we insist that the abolition of capitalism and introduction of Socialism is the only way out for the working-class, members of the Labour Party usually give the answer that Socialism is something for the future and what is needed is a practical policy for the present, a policy to deal with everyday things like prices and wages and rents and fares. Let us then take a look round and see just what the Labour Government has done about these things.

Between the wars the Labour Party denounced the official Cost of Living Index on the ground that it had long ceased to be reliable. Since 1939 the Index has moved further and further away from reality. Government policy, both in the war-time Coalition and since Labour came to power, was to juggle with the Index in order to prevent it from rising beyond the point it reached in 1942. Thus the pretence was kept up that the cost of living had increased since 1939 by only 31 per cent., or about 4d. in the 1s. This juggling was done by using subsidies to keep down the prices of certain articles that were included in the Index and ignoring the much bigger increases of prices not included. Of course almost everybody (except the Government) admits that the increase is much more than 31 per cent. As long ago as April, 1946, the Manchester Guardian concluded, on the basis of other official figures, that “the cost of living has increased by 55 per cent.” (Manchester Guardian, 15/4/46), and recently Mr. Bernard Harris, City Editor of the Sunday Express, summed the matter up with the remark, “That Index has apparently become incapable of movement, and no one pays any attention to it any more.” (Sunday Express, 1/6/47).

Now the Labour Government has thought up a new deception, A more accurate index is to replace the old one, but, and here is the snag, it is to relate only to future movements of the cost of living and will not indicate how large an increase has taken place already; and although the cost of living has been rising sharply during the past year the workers are now told by Mr. Attlee not to ask for wage increases. ”I appeal to all of you not to press at this time for increased wages.” (Daily Herald, 7/8/47).

So prices have risen and wages are not to rise, which is just the opposite of Labour promises. They promised to support higher wages, and what they said about prices was, “everybody knows that money and savings lose their value if prices rise so rents and the prices of the necessities of life will be controlled.” (Labour Party Programme at the General Election, 1945, “Let us Face the Future.”).

True the Labour Party kept that promise to continue rent control and indeed extended it by setting up Rent Tribunals for furnished rooms ; but here again there are several niggers in the woodpile. While net rents are controlled, actual rents are rising because of the increase of rates, landlords being able to pass it on owing to the acute shortage of accommodation; and everyone knows that the Tribunals have only touched the fringe of the problem for the unfortunate tenants of furnished rooms, many of whom are afraid to lodge a complaint for fear of being turned out a few months later.

Here are a few news items on the increase of rents. “Rents of many houses and flats are jumping because of stiff increases in rates. Uncontrolled flat and house prices are soaring.” (Sunday Express, 1/6/47).

“Six hundred homeless families applying for council houses at Maltby, South Yorkshire, have to answer a wages quiz to make sure they can pay the rents. Rents of pre-war council houses range from 9s. to 11s.; new houses between 14s. and 16s. a week.” (Daily Express, 25/6/47).

“The rents for council houses being built here [Tunbridge Wells] . . . are claimed by Labour Councillor John Hutchings to be so high that two-thirds of the 1,238 families on the Royal Borough’s waiting list will be unable to afford to live in them . . . The rents for two types of houses have been confirmed at 26s. 6d. and 27s. 6d., inclusive of rates. The rents for the 14 largest houses, worked out on the same basis, will be 32s. 9d. a week.” (News-Chronicle, 5/6/47).

Another item of expenditure is fares. In 1942 Mr. Bevin, at that time Minister of Labour and now Foreign Secretary, had something to say about the workers’ inability to afford both the rents and the fares, then being charged.

“It would be essential for the cost of habitation to be reduced. Rent and transport took too big a slice out of the wage income of our people.” (In a speech to the National Chamber of Trade News-Chronicle, 16/7/42).

That was ths promise, now for the performance. After several war-time increases of fares by London Transport and the main line railways the Minister of Transport announced in Parliament on August 5th, “all railway charges will be raised to 55 per cent. above pre-war with effect from October 1st next.”

The moral of all this is that Labourism does not solve the workers’ problems. Socialism is the only hope.