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22 July 2020

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Luton Council sunk by airport investment: fight for funding, not speculation!

Trade unionists fighting council cuts in March 2020

Trade unionists fighting council cuts in March 2020   (Click to enlarge)

Mark Pickersgill, Stevenage Socialist Party

Labour-controlled Luton agreed drastic cuts to services at a full council meeting on 14 July. These are a direct result of a dramatic decline in dividend payments from the Bedfordshire borough's commercial interests.

This includes a 37 million shortfall from a drop in Luton Airport revenue during the Covid-19 lockdown. The council receives more from trading and investments, including the airport, than it does from council tax. Passenger numbers at Luton Airport are not expected to return to normal until 2023.

Luton Council has the country's second-highest proportion of income from commercial investments - after the City of London, home to the capital's finance district.

But more and more councils have attempted to offset the fall in central government funding by gambling on commercial investments. The National Audit Office reported in February - before the lockdown - that many local authorities were badly exposed in the event of a recession or property crash.

Luton's cuts include scrapping the council-run school meals service, outsourcing it to private companies and individual schools, putting up to 365 jobs at risk. There will be cuts in travel concessions, children's centres, youth services, and reduced funding for social care and mental health services.

There will be reductions in the council tax support scheme, affecting many low-paid workers. And with a council tax increase not ruled out on top, these measures will have a profound impact on the wellbeing of many working-class and vulnerable people.

Labour councillor Andy Malcolm, who holds the borough's finance portfolio, commented that "the coronavirus has broken our defences against austerity." But Labour councils offered no defence against austerity even before this. Councils including Luton have passed on the Tories' cuts without a fightback, resulting in job losses, while selling off valuable assets and indulging in property investments.

Malcolm adds that "the government hasn't provided sufficient support, despite our repeated requests since March and the 10,000 strong petition signed by the people of Luton." But rather than just pleading with the Tories or sending off petitions, Labour councils should be defending these jobs and services.

Competing for a limited pool of business investors, and throwing money at market ventures instead of jobs and services, were never going to solve the problem. This is doubly true during an economic downturn.

The Socialist Party demands that Labour councils pass no-cuts budgets by using financial reserves and borrowing powers. But this is just the start - above all what is needed is a mass campaign involving the unions and local community to fight for the needed funding from the Tory government.

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Finance appeal

The coronavirus crisis has laid bare the class character of society in numerous ways. It is making clear to many that it is the working class that keeps society running, not the CEOs of major corporations.

The results of austerity have been graphically demonstrated as public services strain to cope with the crisis.

The government has now ripped up its 'austerity' mantra and turned to policies that not long ago were denounced as socialist. But after the corona crisis, it will try to make the working class pay for it, by trying to claw back what has been given.

Inevitably, during the crisis we have not been able to sell the Socialist and raise funds in the ways we normally would.

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In The Socialist 22 July 2020:


Fight for our livelihoods... fight for our lives!

Fight for the NHS

Huawei: what's behind Johnson's latest u-turn?

Mandatory masks in shops law: workers must not pay the price

Luton Council sunk by airport investment: fight for funding, not speculation!

Tories using pandemic to privatise NHS more

Them & Us


Hugely significant Tower Hamlets council workers' strike continues

Hugo Pierre for Unison general secretary

No going back

Housing crisis: what now and after the pandemic?

Workplace news

United Left general secretary hustings shows widest debate needed for left in Unite

Nationalise Tata Steel to save jobs

Online rally: Fight the London transport funding cuts!

Continue the fight to protect safety

Debenhams: Fighting closures and redundancies

Trade Unionist and Socialist Coalition

Time to relaunch TUSC


I joined the Socialist Party to fight back

Wales arts cuts: Save every job

Trade unionists and artists stand with Maxine Peake

Bristol trans rights protest

Getting the Socialist over the summer


Saving the music industry from pandemic and austerity

International news

Iran: Renewed wave of protests and strikes

Israel: Nurses strike and win

Communist Party

100 years since the foundation of the Communist Party of Great Britain

Readers' opinion

Exciting Cuban spy thriller exposes US-sponsored terrorism

The Socialist inbox


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Article dated 22 July 2020

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