The FT notes this morning that:
Buyers spent £1.8bn on land for property development in central London in the second quarter of 2015, according to figures from CBRE, the world's largest property adviser. This is the highest level since 2007, and up 118 per cent year on year.
If only we had a land value tax so much of that gain would be captured for public good.
As it is we allow much of it to pass from our hands. And that will even have included the gains if the land was registered in tax havens, as so much is.
The time for reform of land taxation has come.
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Indeed- thie ill-gotten gains of land/housing increments is the real ‘scrounging’ in our economy and needs to be seen as such. perhaps you could write to Corbyn on this one Richard, as the lack of LVT is one of the greatest impediments to creating a prosperous society on all levels.
Mill put it well:
“The ordinary progress of a society which increases in wealth, is at all times tending to augment the incomes of landlords; to give them both a greater amount and a greater proportion of the wealth of the community, independently of any trouble or outlay incurred by themselves. They grow richer, as it were in their sleep, without working, risking, or economizing. What claim have they, on the general principle of social justice, to this accession of riches? In what would they have been wronged if society had, from the beginning, reserved the right of taxing the spontaneous increase of rent, to the highest amount required by financial exigencies? “
A telling silence . George Monbiot, 21 January 2013 . Andy Wightman also gives great insight, in Scotland of course.
Time to join the Labour Land Campaign: http://www.labourland.org/become-a-member/. That’s ‘labour movement’, not ‘Labour Party’. Our President and a Vice Chair are Greens, the Chair is CPB, Other Vice Chair and Secretary (me) are Labour, Treasurer is Coop Party, Research Officer is Young People’s Party. We’re the most active LVT campaign in the country.
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Carol
Indeedy!
As to offshore owners, this is a minor issue as the tax liability is registered against the title at HM Land Reg, as long as somebody pays it (registered owner, real owner, tenant or bank), all well and good.
If the payments are a few years in arrears, then the title is simply auctioned off and the balance of sales price kept to one side for another few years, should the true owner ever come along and ask for it.
In real life, Business Rates is pretty close to LVT, and despite a lot of commercial land being registered to non-UK owners, it still gets paid.
Comment from John Christensen today re JC: “I remember him supporting LVT way back in the 1990s and don’t imagine he’s changed his position”.
I agree with John
I often do!
As I am sure Jeremy knows, LVT takes Labour back to its roots – it was the main economic policy of the Labour Party in all its manifestos until WWII.
I agree. A land value tax instead of other taxes would reestablish an efficient taxation system, avoid speculation in land, get better use of land and be an unavoidable tax. The Coalition for Economic Justice consists of a range of organisations, charities and political who fight for this necessary tax – and we support the Tax Justice Movement.