Central government can
effectively bankrupt local councillors if they don’t do its bidding.
But 50 years ago that
didn’t stop elected members in Clay Cross from refusing to increase council
house rents. Mark Metcalf looks back
All 11 councillors
were ordered to pay £635 each to cover the extra rents they had failed to
collect
In many respects the
situation at the time was similar to today, with poorer people being asked to
pay for the economic crisis.
The Conservatives had
been trounced in local elections in 1971-72, losing nearly 3,000 councillors
and control of most major cities. Much of the country’s public housing stock –
which was almost double the 18 per cent figure of all housing today – was under
Labour control. Official Labour Party policy was to oppose the HFA, under which
rent paid would make a profit for councils. The plan was to increase rents over
four years to £5 a week, trebling the £1.60 charged in the Derbyshire village
of Clay Cross.
For the HFA to work
the government needed the assistance of Labour councils. Fearing being
surcharged and barred from office, one by one they fell into line until Clay
Cross Urban District Council (UDC), consisting of just 11 councillors, all
Labour, remained alone in refusing to implement the rent rise.
Locally born John Dunn
joined the Labour Party as a teenager in the late 1960s. He became a miner in
1971 and worked underground for 19 years. “I backed the council when it sought
to relieve some of the deprivation and hardship,” he says. “Councillors were
miners, cleaners and building workers.
“They’d introduced
benefits such as pensioners’ free travel and built a swimming pool and
community centres. When the education secretary Margaret Thatcher stopped free
school milk, the UDC used a penny rate to continue to provide milk. Councillors
created jobs by expanding its direct labour force. It paid a living wage.
“But the real issue
was, as in many deprived areas, housing. A fifth was slums. By 1970, the
council, which had to buy them from Clay Cross Company, had demolished over 500
houses that lacked hot running water or inside toilets. New land was purchased
and housing built. The council, chaired by Dennis Skinner until he became an MP
in 1970, used the general rate fund to subsidise the programme rather than
government loans.”
New homes had gardens
and public spaces. Council rents remained affordable and Clay Cross councillors
had resolved to keep them so by defying the HFA. They refused to increase rents
by £1.
This defiance
continued a tradition started in 1921 by 30 councillors in Poplar, London, who
were imprisoned for protesting at what they saw as an unfair rating system. In
1926, elected boards of guardians who administered poor relief in West Ham in
London and Chester-le-Street were disqualified for paying more than they were
entitled to.
On 18 January 1973 all
11 Clay Cross councillors were surcharged for an alleged deficit in the
council’s housing revenue account and ordered to pay £635 each to cover the
extra rents they had failed to collect. Councillor David Skinner, brother of
Dennis, spoke for all, saying he would never pay a penny. A legal challenge to
the decision was lost at the High Court in spring 1974.
“Surcharges bankrupted
the councillors and they were removed from office and barred from ever standing
again,” says Dunn, aged 22 back then, married with a three-year-old daughter.
He stepped forward to stand as a candidate in 1974 when the last ever UDC
elections took place before Clay Cross became part of the new North East
Derbyshire district.
“Bailiffs removed
councillors' cars and they also took possessions away by entering people’s
homes. By the time this happened there was a Labour government but it would not
intervene to make sure the £7,000 owed was overlooked.
“We won ten of 11
seats on an 80 per cent turnout. The other was lost by two votes. We maintained
the policy of asking tenants not to pay the proposed rent increase. The
government had sent in the Housing Commissioner, who had to employ his own rent
collectors.”
Dunn himself was then
surcharged, not over the HFA but for breaking government pay restrictions by
introducing a living wage for full-time housing wardens in sheltered
accommodation.
“Councillors were
barred from office for five years and ordered to pay a combined £2,202. This
was covered through donations.”
Dunn was elected to
Derbyshire County Council in 1993, supporting firefighters in a pay dispute as
chair of the fire authority and opposing cuts in council services before
quitting in 2005 in protest at Tony Blair’s decision to send British troops to Iraq.
Central government
funding to local authorities was sharply reduced in the austerity policies of
2010 onwards, forcing councils to make big cuts in services. Liverpool has lost
£0.5 billion since 2010, Newcastle £410 million, with a further £63 million cut
between now and 2026. Manchester is set to lose £96 million up to 2026, with
social care likely to bear the brunt.
Dunn criticises
central government for this but also wants councillors to refuse to implement
the cuts.
“Fifty years on I
believe Clay Cross councillors were right. It was a bad law aimed at struggling
social housing tenants. Anyone in the labour movement must stand against a bad
law. By resisting such laws, the lives of ordinary people have been improved.”
Will there be any
resistance?
“Unlike previously,
councillors today get paid. Many view this as a nice second income. Labour
Party policy is to make cuts. Last year when six Liverpool Labour councillors
decided not to vote against their own group’s budget cuts, they lost the Labour
whip. At a time of great economic hardship for many they were right to not do
the government’s dirty work.
“If many councils
combined to take a stand the government would face a very difficult problem and
don’t forget – at Clay Cross we did achieve some success as the rent increase
did not get collected.”