Green MP Calls for Land Value Tax

Posted on 12 November, 2012 by Neil Bird

Caroline Lucas, the Green Party MP for Brighton, has urged the government to consider introducing a Land Value Tax (LVT) arguing that it would stimulate economic activity and allow the Treasury to cut income tax for middle earners. Ms Lucas made the call via a private members bill introduced to parliament on Friday.

Caroline Lucas MP

Supporters of the bill claim that a reform of the current system would prompt property companies to return derelict industrial land to either residential or commercial use. Currently developers pay no tax on land with planning permission and can sit on it for years.

In the current economic climate property companies are less inclined to speculative developments and are keen on incentives before commencing projects. Lucas, who also believes that the business rates system is flawed, claims that a LVT would provide that incentive.

However, Treasury minister David Gauke has already expressed his opposition to the proposal, telling Lucas that a LVT would be an expensive burden on property developers. Instead the government is expected to press ahead with planning deregulation, which it hopes will stimulate development.

Ms Lucas responded by saying; “Given the increasing support among economists and politicians for a land value tax, I had hoped the Treasury would approach this effort to create fairer property taxes with at least an open mind.

“Yet in responding to my debate on LVT, David Gauke stubbornly refused to even commissioning research into the reform, whilst completely turning a blind eye to the potential benefits, which are considerable.”

The MP added that the case for LVT is ‘overwhelming’ and urged the Treasury to consider ‘progressive solutions’ to the UKs ‘broken tax system.’

What impact do you think LVT would have on the commercial property market? Share your views with us below.




Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Recent Posts

Interest Rates Impact on Commercial Property

Commercial Property Investment Outlook for 2023

The best places to stay on the Riviera

The latest property data has identified Newquay as the fastest property seller’s market in the UK

Investing in your garden can increase your property’s value

French Riviera temping high-end homebuyers

How can the ownership rights of my commercial property impact a business sale?

Should I incorporate virtual property viewings permanently?

Investment expected to increase across Asia-Pacific in 2021

UK property industry slows as the conclusion of tax break looms

BNP Paribas cautioned investors on Friday as debt-trading bonanza that increased its earnings this past year

Over 300,000 property purchases fell through in 2020 – we show the most frequent motives and the best way to get your house sale back on track

House Prices in the Capital Surpass £500,000

Optimism from the Bank of England’s chief economist

The most expensive commercial properties.

Businesses operating from shared premises will miss out on grants