Working class housing, and by that we mean houses for those who depend upon wages and salaries for a living, has for a very long time been provided in three ways: by private enterprise builders, by employers and by Local Authorities. Of these, Local Authorities came last on the capitalist scene in an attempt to carry out a rescue operation after others had failed dismally to provide for even the minimum requirements of an efficient labour force.
Like any other capitalist venture, private enterprise building must promise a profit to those who engage in it, or lend money for it, before such “enterprise" is even contemplated. Moreover the rate of profit must compare favourably with that from other kinds of capitalist investment. The fluctuations in the rate of building have, since the beginning of capitalism, been attributable in the main to the movement of investment caused by the search for the greatest profit. Particularly has this been the case in respect of housing for the lower-paid workers, able to pay only small rents, and where profit margins are consequently small. The situation has been aggravated by “boomerang reform measures" — Public Health, Building and Housing Regulations — which have raised the minimum standards of working class housing from the dismal levels of 19th. century slums. The result of such legislation has been to still further reduce the prospect of profit in private enterprise building with a consequent drying up of supply.
Of the second category of house building, that undertaken by employers, little need be said, except that it suffers from similar limitations to those found in “spec" building. In the early part of this century a few idealistic employers such as Cadburys and Lever Brothers built model housing estates for their workers (Bournville and Port Sunlight) which provided the shining example for those reformers of capitalism who saw in these ventures a means of solving the housing problem without disturbing the edifice of a capitalist economy. The movement however did not spread to the extent envisaged. Industrialists in a competitive world can seldom afford to provide better housing for their employees any more than they are generally willing to raise their wages.
Whether houses are built by speculative builders or enlightened employers, standards are still limited, directly or indirectly, by the purchasing power of the worker.
Against this background of failure the housing shortage developed, slums proliferated, the decayed housing of the middle income groups was split up into “flats" to provide cheap accommodation for their less fortunate brethren. Wars and slumps brought building to a virtual standstill, until at the end of the last World War politicians were estimating the housing shortage in this country at figures ranging from one to four millions, according to their political outlook.
It was early realised that slums threaten the health of the community and reduce the efficiency of the workers. Herbert Morrison, later leader of the LCC, writing in 1923, pointed out that
In addition to the public money spent on slum clearance, it has to be realised that, consequent on evil housing conditions, much expenditure on Public Health Services is involved. A not inconsiderable proportion of the £1,880,884 spent by the London ratepayer in the financial year 1916-17 on Public Health Services . . . was the consequence of bad housing, and the same is true of the £500,000 estimated expenditure in connection with tuberculosis in the year 1921-22.” (A Housing Policy for London).
and George Hicks in a pamphlet published by the TUC and the Labour Party in 1922 has this to say about slums:
Bad housing creates illness and encourages crime. Illness and crime mean public expense. The effect of overcrowding upon industrial efficiency, unemployment in building and allied trades, loss of public revenue as a result of arresting the normal increase of rateable property — these are included in the price we pay for housing neglect.” (How to Get Houses).
Industrialists appreciate all this but, as has been seen, can do little about it on their own account. Political parties cannot ignore acute housing shortages when they appeal for votes at elections. If private enterprise cannot provide the housing required, then the State must step into the breach. Which brings us to our third category of housebuilding: Local Authority Housing financed by Government grants and contributions from the rates.
Since 1890 a succession of Housing Acts have provided subsidies for the building of houses by Local Authorities together with powers to charge part of the cost of building to the rates. (Some of these Housing Acts have offered subsidies to private builders but their interest in such offers has steadily declined since they were first made in 1919).
It might be thought that here was the answer to the housing question and it seems strange that after 77 years, some ten Housing Acts and a succession of Conservative and Labour Governments, there should still be an acute housing shortage. The reasons are however not hard to find. One has only to look to see where the money comes from.
Government grants for housing derive from taxation. In the last analysis income tax is paid by the capitalist class since employers have to pay their workers not only enough to enable them to live but also enough for them to pay their taxes. And they have their own taxes to pay as well. It is no wonder therefore that capitalists become as alarmed as anyone when the Chancellor of the Exchequer proposes an increase in Income Tax. They, in the end, carry the burden of it. Taxation eats into their profits in more ways than one. Money flows to where profits are greatest — even right out of the country when things are bad — and no Government, Labour or Conservative, can allow this to happen.
If we examine the history of the Housing Acts we see this situation reflected in repeated economy measures, restrictions, limitations and sometimes complete abolition of subsidies. The same situation exists in respect of rates, the other source of housing subsidies. Rates are only another form of taxation, property-based instead of income-based. Faced with such restrictions in expenditure, with an increasing population, the deterioration of old property, the destruction due to war and the cessation of building during wars and slumps, the fact that Local Authorities cannot solve the housing problem, even for the lower-paid section of the working class, is not difficult to understand.
Before the 1914-18 War the almost universal type of working class urban house was what came to be known as the “tunnel-back” — mostly two-storey terrace houses containing living room, parlour, kitchen and scullery on the ground floor and three bedrooms on the upper floor. With the rapid improvement in means of transport which took place at the beginning of the century, it became practical to spread new housing over the cheaper agricultural land surrounding the towns and considerably reduce the density of building. Apart from this, and the addition of a bathroom, the accommodation provided was generally the same and room sizes no larger. In fact, in many houses the parlour was surrendered in exchange, for the bathroom. These were the “Council houses” brought into being by the Housing Acts.
The first of the Government “housing manuals”, published in 1918 as a guide to Local Authorities, indicated space standards for various types of houses and sizes of families. This manual set the pattern for many subsequent manuals by suggesting minimum sizes for individual rooms and by providing typical plans showing room sizes and over-all areas for various types of dwelling. If we trace through these manuals the recommendations for three-bedroomed houses for a family of five, we find that between 1918 and 1961 (the date of the last manual) there is remarkably little increase in space standards. The following table illustrates this.
To sum up the present position it is therefore fair to say that the provision of State-subsidised Local Authority housing has, in spite of repeated Government promises, neither met the demand for working class housing in terms of numbers of dwellings, nor shown a material advance in space standards over a period of nearly fifty years. The housing standards of the working class remain a reflection of the wages they receive. The housing problem is essentially a poverty problem and cannot be solved until the workers exchange capitalist poverty for socialist plenty.
John Moore
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