Rachel Reeves ‘considers one-year rent freeze’ as Labour scrambles to win over hard-pressed Brits ahead of local elections

Rachel Reeves is considering a one-year rent freeze on private homes as the Iran war continues to hit voters’ pockets.

The Chancellor is considering plans to ban landlords in England from increasing rents for the period, in what would be a major policy change ahead of local elections.

The proposals will form part of a major cost-of-living package to be launched in the next few weeks to combat the effects of war in the Middle East and the closure of the Strait of Hormuz.

Ms Reeves has resisted the introduction of rent control in Labour’s Tenants’ Rights Bill, which comes into force on Friday, and has previously said she is not in favor of a ‘comprehensive approach’ to rent control.

But ministers are worried about the impact of the war and the Treasury is said to be considering exceptional measures to limit the impact on household budgets and mortgages. protector.

Talks are thought to be at an early stage, with Ms Reeves considering a range of interventions in rental markets to reduce housing costs.

Labor is expecting heavy losses in May’s local elections and the Government is looking at quick plans to ease the cost of living.

Rent controls have been criticized for worsening the housing shortage by forcing landlords to leave the private rental market.

Some argue that this deters developers from building more properties and worsens the shortage in the long run.

Robert Colvile, president of the Center for Policy Studies, described Ms Reeves’ plans as a ‘mind-boggling intrusion into the private market’.

He said: ‘If the government wants to reduce rents it needs to build a lot more houses.’

But George Bangham, head of social policy at the New Economics Foundation think tank, said: ‘We have an affordability crisis in the private rented sector that dates back to before the pandemic. Other countries in Western Europe are already doing this, and Britain was doing this from 1915 to 1989.

‘We know rent controls can solve the affordability crisis if done carefully, we just need to be willing to implement them.’

A year-long rent freeze is said to be the Chancellor’s preferred option to keep rent prices low.

It is thought that new-build properties are excluded from the freeze to avoid limiting work on new homes.

Although Labor has pledged to build 1.5 million homes by 2029, it appears to be a third behind this target.

The Chancellor is considering a support package that could be introduced this summer to help households with their energy bills.

The proposals will form part of a major cost of living package to be launched in the next few weeks to combat the effects of war in the Middle East and the closure of the Strait of Hormuz (pictured)

It is also under pressure to cancel a planned increase in fuel tax due to rising gasoline prices.

Last month Ms Reeves claimed that any rescue package for Britons affected by the Middle East crisis would be targeted rather than universal.

In a statement to the Commons, Ms Reeves said the 2022 support under the Conservative Party was a ‘mistake’ because most of the £40bn was going to ‘the rich’.

He said he would focus the funds ‘on those who need it most’.

Ms Reeves also outlined plans to prevent a price ‘crash’ during what she acknowledged would be a ‘significant’ cost-of-living storm.

The latest offer comes as the High Street suffers its worst month in more than 40 years as the Iran war hits households already reeling from higher taxes under Labour.

The Confederation of British Industry (CBI) said retail sales volumes fell by the most in history.

While 77 percent of the companies participating in the survey stated that their sales volumes this month were lower than in April last year, only 9 percent recorded an increase.

The balance was minus 68, the lowest since 1983. The decline in sales occurred despite retailers lowering prices; This sparked warnings that shoppers were yet to feel the ‘full force’ of the war.

The closure of the Strait of Hormuz led to increased gasoline and diesel prices and posed the danger of increased energy and food bills. Employers are also grappling with increases in minimum wage and business rates bills, as well as last year’s national insurance duty raid.

Conservative Party spokesman Andrew Griffith said: ‘These figures show the true extent of the April Armageddon caused by the combination of the Chancellor’s policies and global uncertainty. But instead of taking action, the Government continues to pile up more taxes and red tape.’

But a separate report from the British Retail Consortium found that store prices rose less than feared; rose 1 percent last April, but has fallen since a 1.2 percent rise in March; food price inflation fell from 3.4 percent to 3.1 percent.

Labor is hoping a rent freeze will ease pressure on Keir Starmer, with the party expected to suffer significant losses next month.

Labor hopes the latest proposals will ease pressure on Keir Starmer as the party is expected to suffer significant losses in next month’s election

Sir Keir is launching a rearguard action tonight ahead of a tough vote in the House of Commons on the Peter Mandelson scandal.

The embattled Prime Minister was left shaken after House of Commons Speaker Lindsay Hoyle presented him with an argument on whether there should be a parliamentary inquiry.

Tomorrow’s showdown means Labor MPs will have to decide whether to rally behind their faltering leader.

If Tuesday’s motion is passed, a formal inquiry will be launched by the House of Commons’ privileges committee.

Labor whips are said to be calling on backbench MPs to block an investigation into whether the Prime Minister misled Parliament about the appointment of Lord Mandelson as Britain’s ambassador to the US.

Addressing the Parliamentary Labor Party in person on Monday evening, an increasingly despondent Sir Keir also called on former Prime Minister Gordon Brown to call on MPs to support him.

The former prime minister has called on Labor ranks to ‘put the needs of the country first’, despite ‘parliamentary games at Westminster’, amid the Middle East crisis and Ukraine war.

Sir Keir described tomorrow’s debate as a ‘spectacle’ and signaled he would whip Labor MPs to back him. He also revealed that his wife, Victoria, was pressuring him to continue the fight and remain in Downing Street despite growing calls for him to resign.

A spokesman for HM Treasury said: ‘We do not comment on speculation.’