PUTTING LAND VALUE TAX ON THE MAP (Oxfordshire Liberal Democrats)

Oxfordshire Liberal Democrats <info@oxfordshirelibdems.org.uk>

PUTTING LAND VALUE TAX ON THE MAP

January 26, 2005 12:00 AM

Fifty-two people came to County Hall last Tuesday, 25th January, to discuss Land Value Tax. They included valuers, academics, officials from HM Treasury and the Local Government Association, as well as local politicians and council officers. The meeting resulted from a study by members of the County Council and Vale of White Horse District Council carried out in a small area of Botley and Cumnor.

The idea was to judge the effects of replacing both Council Tax and business rates with a new Land Value Tax (a tax based on the value of each plot of land but not including the buildings on it). LVT is already in use in many other countries, such as Denmark and parts of the USA. It helps small operators to compete with the high street giants and prevents developers holding land idle when it should be used for vital housing.

The study showed that it would be comparatively simple to replace the two existing unpopular taxes with LVT. The whole area was professionally valued and the results stored in the Vale of White Horse computer system. Vale Liberal Democrat councillor Paul Bizzell produced various models of how the tax could be applied. The model favoured by most panel members would mean that at least 70% of both business and domestic taxpayers would gain from the change.

LVT would be a much fairer tax than Council Tax with people living in Bands A to E houses generally paying less and those in Bands F to H mostly paying more.

Labour Cllr Brian Hodgson, whose original motion to the County Council led to the study, said: "I am delighted that there has been so much interest in the results of this initiative. Any tax favoured by Winston Churchill, Einstein, Tolstoy and Milton Friedman must be a good idea."

Liberal Democrat Cllr Margaret Godden, who chaired the seminar, said: "There is a lot of talk about finding a replacement for the Council Tax. We hope that this successful study will encourage the government and other local councils to see the advantages of LVT."

"This is a much fairer tax, which promotes development in line with democratically agreed local plans," said Cllr Paul Bizzell.

Note to Editors:

Definition of Land Value Tax: "A tax on the value of land exclusive of all buildings and other improvements, the value being the appreciation due to population increase and general economic development of the community for which the landowner, as such, is in no way responsible. It is the unearned increment or economic rent, that is taxed in whole or part." (Dictionary of Economics)

For more information please contact:

Cllr Brian Hodgson 01993 891310

Cllr Margaret Godden 01865 721530

Cllr Paul Bizzell 01235 530647