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Sunday, 8 September 2024

The Lessons of Grenfell Tower

The media discussion of the Grenfell Tower Inquiry Phase 2 Report has increasingly focused on the operational failures of the building firms involved, with calls for criminal prosecutions, and on the deficiencies of the regulatory regime, with dismay at the risks entailed in cutting red tape and a consequent demand for tougher government intervention. What has been increasingly lost in this orchestrated campaign is the role of the local authority, the Royal Borough of Kensington and Chelsea (RBKC), and in particular its policy towards social housing. A good example of this was the Guardian's immediate analysis by Peter Apps, a housing expert critical of the industry, which doesn't mention RBKC once. This could be justified given the tenor of the report itself. The execuitve summary, which is probably all that many journalists will have read, largely limits itself to criticising RBKC's poor oversight of the Tenant Management Organisation (TMO) that had in turn failed to "observe its basic responsibilities" towards the tower's occupants. What the report doesn't do is question the very existence of the TMO. Why was this arms-length function deemed necessary by a council that had the primary responsibility for its tenants?

It is clear from the report that the TMO existed to outsource responsibility and thereby remove day-to-day management of the tower as a concern for councillors and council officers. One telling example of what this meant in practice is the report's observation that "RBKC took little or no account of an independent and highly critical review of fire safety carried out for the TMO in 2009. It did not even know about a further independent and highly critical report produced in 2013 because the TMO had failed to disclose it to RBKC." This, like a number of other observations in the report, essentially charges RBKC with ignorance when the actual charge should be wilful neglect. The strongest criticism of RBKC's performance in the lead-up to the fire was reserved for council officers: "RBKC’s building control department failed to perform its statutory function of ensuring that the design of the refurbishment complied with the Building Regulations." In other words, there has been a scrupulous determination to avoid questioning the political logic of social housing management in the borough in favour of a focus on the regulatory regime.

Where the report cannot avoid addressing the failures of the council is in the response to the tragedy, but again the tenor is very much that this was an organisation simply overwhelmed by the challenge or unsuited to the immediate demands placed upon it: "RBKC’s systems and leadership were wholly inadequate to the task of handling an incident of such magnitude and gravity, involving, as it did, mass homelessness and mass fatalities." A telling comment is that the victims and survivors of the fire received far more effective support through community groups than they did from the council, but that this was ultimately down to the council's dismissive attitude towards the community rather than any difference in resources or competence: "one of RBKC’s failings was to make too little use of the local voluntary organisations and to fail to have adequate standing arrangements to enable them to be called on in the event of a major emergency." In other words, there was a lack of trust not only between tenants of the tower and the council, which the report could pin on the TMO, but a more wide-ranging lack of trust between the community of North Kensington and RBKC.


There are two unusual characteristics of RBKC that need to inform an understanding of the tragedy and its aftermath, both of which I highlighted in the post I wrote a year after the fire: Candide in Kensington (a critique of Andrew O'Hagan's whitewash of the council in the London Review of Books). The first is that the council is very small both in terms of population and territory. It is, in fact, the smallest borough in London by population if you exclude the oddity of the City of London. If it were to be merged with the neighbouring (also small) borough of Hammersmith and Fulham, the combined authority would still only be the sixth largest in London, about the same size as Wandsworth. A larger authority would not only have greater capacity in terms of emergency housing, but it would likely also have more officers devoted to building control and health and safety. The limitation of size has been recognised for years, however this hasn't advanced beyond the pre-fire "Tri-borough" arrangement for shared services (also involving the City of Westminster) where the focus was very much on cost-cutting during the post-2010 austerity years. There is no real justification for the separate but adjoining boroughs, but it has historically suited both main parties, with the Conservatives having exclusive control of Kensington and Chelsea (except for the northern wards) and Labour dominating Hammersmith and Fulham for all but a brief period between 2006-14.

The second characteristic is the longstanding antipathy towards the direct provision of council housing, one reason why the borough was notorious for slum landlordism up until the 1960s. Historically, it always preferred to operate at arms-length through charities and housing associations rather than directly providing and maintaining council homes. This is the root explanation of the TMO, a desire to outsource its residual responsibilities as a landlord and an implicit acknowledgement that it "doesn't do" council housing. That the phase 2 report essentially buys into this narrative of council incompetence (the recommendations are largely about training council staff up to be able to better manage its services and contingency planning) means that the political worldview behind its poor performance is not brought into the light. The borough is a stark example of social segregation, with the richer southern wards politically dominating the rump northern wards and treating the social housing residents of the latter as at best an afterthought and at worst as importunate and ungrateful (as many were characterised by O'Hagan). That the report locates this lack of trust between authority and people in the TMO is an evasion and an example of the unwillingness of public inquiries to address the political context of failures, something seen in the torturous Hillsborough saga and more recently in the Contaminated Blood scandal.

More broadly, the attitude of the RBKC points to the political elephant in the room, which is the UK's troubled relationship with housing. The fundamental problems of the UK housing market are not inadequate supply and high prices - these are merely epiphenomena - but a lack of capacity in the system, which is the consequence of the end of central planning (i.e. the expansion of council housing) and the concomitant financialisation of housing as an asset class with the take-off of Right to Buy and mortgage deregulation in the 1980s. It cannot be stressed enough, that the UK has only properly housed the population, whether owner-occupiers or tenants, during the postwar era of central planning, and then only towards the end of the era when supply caught up with demand. Basically, the late-1970s. All states make provision for spare capacity, but not always in the same areas. For example, the UK has always sought to maintain a domestic defence industry, notionally to ensure national security but also to reinforce its geopolitical delusions. Doing so entails a need to keep that industry busy, hence the easy encouragement of military adventures and the selling of arms to dodgy regimes. Continuing to build social housing capacity would have left us with a public good and fewer property millionaires; continuing to produce arms for sale has left us open to the charge of aiding and abetting genocide.


Other states are more concerned with capacity issues such as food security or medical supplies. The former can give farming interests an outsize influence on land planning and retail prices; the latter can mitigate the dangers of a public health crisis. The criticism this weekend over the poor preparedness of the NHS for the Covid-19 pandemic should be read less as an attack on the serial incompetence and cheese-paring of Conservative ministers since 2010 and more as a long-overdue recognition that the state has been reducing its capacity, and therefore its contingent capabilities, across the board since the 1980s. This, as much as formal deregulation, has been a consistent theme of all governments since Margaret Thatcher. And it is not simply a naive belief that the free market will provide, but a conscious desire to reduce the public responsibilities of the state. Of course, the state never shrinks, not just because its prime directive is self-preservation but because the reduction in provision simply promotes costly demands elsewhere. Thus the lack of council housing investment has been more than offset by the increase in the cost of housing benefit, which simply means that state resources have been diverted from the needy to rentiers.

Might there be a sea-change in government policy? Labour have certainly talked up the issue of planned capacity in some of their proposals, such as Great British Energy, but the substance to date has looked a lot like marginal or cosmetic gestures while the insistent drumbeat from both the Prime Minister and the Chancellor has been that austerity remains the only game in town. The idea that fiscal responsibility will stimulate private sector growth ("expansionary fiscal contraction") was comprehensively disproved under the Cameron and Osborne regime, but even if it proved true this time, an expanding private sector will simply compete with the state for real resources, which means the likelihood of major investment in capacity isn't on the cards. The idea that you "fix the roof while the sun is shining" is about as intelligent as equating the economy with a household. The greatest historic investments in British public capacity, in areas such as housing and transport, occurred during periods of relative economic turbulence, such as the 1930s and 1970s, as much as during periods of growth. You have to build capacity regardless, rather than waiting for a fiscal surplus that will only lead to the competing demand for tax cuts, and that means accepting that real resources must be diverted from private consumption.

It took over six years after the Grenfell Tower fire for all of the former residents who survived to be permanently rehoused, though often in inadequate accommodation, with the council reluctant to prioritise their needs and its new housing provision continuing at a snail's pace. It is hard to see any evidence that the RBKC and the TMO have changed their attitude over this time. Talking of her recent discussions with the residents, Gillian Slovo noted that "They told me about a council, the Royal Borough of Kensington and Chelsea, and its managing agent, the Tenant Management Organisation (TMO), that treated them as if they should have no voice in the way that they lived. They drew a picture of one of the richest boroughs in England ignoring them because they lived in social housing." The current leader of the council, Elizabeth Campbell (who lives in the ultra-rich Royal Hospital ward), has predictably apologised in light of the report's findings - how could she do otherwise? - but the commitment to learning and improving will be meaningless until such time as she and other politicians are prepared to address the two key characteristics of RBKC: that it is too small to be effective and that its reluctance to invest in council housing will always leave it in conflict with the community of its northern wards. Both are issues of capacity.

5 comments:

  1. «inadequate supply and high prices - these are merely epiphenomena - but a lack of capacity in the system»

    Actually UK housing still has *over*capacity overall because there is significant housing and other overcapacity in the "pushed behind" areas where there are few opportunities for "good jobs".

    This distribution has been intentional: the governments of the past several decades have spent enormous amounts of public money to attract businesses and jobs to the south-east and London, in order to attract a large number of immigrants, both from other regions of the UK and from abroads, to those areas and thus gift property and business owners in those areas with an increasing supply of new workers and new tenants and buyers.

    «which is the consequence of the end of central planning (i.e. the expansion of council housing)»

    There is still a colossal amount of central planning but it is directed at making property and business owners much better off. The governments of the past decades have engaged in long term plans to boost infrastructure and subsidies for the benefit of the south.

    «and the concomitant financialisation of housing as an asset class with the take-off of Right to Buy and mortgage deregulation in the 1980s»

    The “take-off of Right to Buy” happened because huge mandatory discounts were introduced. Many councils offered social housing for sale to tenants before Right-To-Buy but few sales happened because there were no or small discounts. The same also happened in 1997-2010 as Gordon Brown cut the Right-To-Buy discount to 10-20% and when George Osborne raised it back to up to 70% council housing sales quadrupled in many areas.

    «Continuing to build social housing capacity would have left us with a public good and fewer property millionaires»

    But that is... SOCIALISM! Politicians know that public goods only benefit the lower class, which do not matter, and instead thanks to the governments of the past decades many "Middle England" (and even some working class) people have become property millionaires and have become eager voters for more thatcherism and against socialism.

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    1. «Continuing to build social housing capacity would have left us with a public good and fewer property millionaires»

      Some time ago on a blog I found this quite illustrative quote:

      https://jmaynardkeynes.ucc.ie/national-self-sufficiency.html
      John Maynard Keynes "National Self-Sufficiency" The Yale Review (1933-06)
      «The nineteenth century carried to extravagant lengths the criterion of what one can call for short "the financial results," as a test of the advisability of any course of action sponsored by private or by collective action. The whole conduct of life was made into a sort of parody of an accountant's night-mare. Instead of using their vastly increased material and technical resources to build a wonder city, the men of the nineteenth century built slums; and they thought it right and advisable to build slums because slums, on the test of private enterprise, “paid”, whereas the wonder city would, they thought, have been an act of foolish extravagance, which would, in the imbecile idiom of the financial fashion, have “mortgaged the future” – though how the construction to-day of great and glorious works can impoverish the future, no man can see until his mind is beset by false analogies from an irrelevant accountancy.»

      Which also illustrates how "innocent" he was or pretended to be about distributional issues: given an alternative between investors paying for a "wonder city" for the benefit of the lower classes, or building slums for their own profit, those investors and the governments they "sponsored" chose the latter option. And here we are again.

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  2. «the concomitant financialisation of housing as an asset class [...]the UK has always sought to maintain a domestic defence industry, notionally to ensure national security but also to reinforce its geopolitical delusions [...] but a conscious desire to reduce the public responsibilities of the state»

    Focusing on the size/capacities of the state is a very common element of the propaganda of both right-wing parties in the USA and I think that it is a framing designed to deflect from the topic which groups are meant to benefit from government policies.

    This post itself seems tome to argue that the UK state has switched from supporting health and housing to supporting finance, property and defence; indeed the UK governments of the past decades have been spending enormous amounts of public money and enacting many policies to support finance, property and defence interests, benefiting the middle and upper classes, and de-funding what might have benefited the lower classes, including fire-proof cladding.

    This is not shrinking state capacity but rather upwards redistribution.

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  3. One of the jobs of a State is to manage risks. The number of risks that society faces is increasing: ecological constraints, new materials, complexity of issues and wicked problems. The capacity to manage those risks has been reduced, except through a military or security framework, because that is the sort of State we have and because of vested interests. Pandemics have headed the list in the Risk Register for many years but this was ignored pre-COVID because we have a State that is uncomfortable with preparing for a pandemic (but is quite comfortable with invading Iraq). The evidence that the State's capacity to manage risks needs to be increased, whatever the fiscal climate, will be ignored because we have a State that cannot cope with that kind of evidence.

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