Land value capture “could trigger a monumental shift in how we incentivise house building in this country” – Tom Copley AM

September 13th, 2018

Responding to calls from the Housing, Communities, and Local Government Committee for the Government to allow authorities to pilot land value capture, Labour’s London Assembly Housing Spokesperson, Tom Copley AM, said:

“If the Government is receptive to allowing local authorities to trial new ways of capturing land value, this could trigger a monumental shift in how we incentivise house building in this country.

“The price of land is the biggest part of the cost of building a house. By reforming outdated compulsory purchase laws to give local authorities the ability to buy up land cheaply at close to its current value we can deliver many more genuinely affordable homes, especially those at social rent levels.

“By introducing some form of land value capture, such as a Land Value Tax, we could help to fund vital infrastructure projects like Crossrail 2.

“This could also see land brought forward for development at a much quicker pace, by discouraging land banking.

“This isn’t a push for additional taxation, but to replace existing property taxes like council tax, business rates and stamp duty with a fairer system that captures unearned wealth.

“Through my campaign for a trial of Land Value Tax in London, I have seen that there is support from across the political spectrum, including the Mayor of London, for something of this kind. The Government must now show willing to get on board, and at the very least I’d like them to hand City Hall the powers to trial a Land Value Tax here in London.”

Ends

Notes

  • Tom Copley’s report, ‘Tax Trial – A Land Value Tax for London’, which was published on behalf of the London Assembly Planning Committee, can be found here;
  • Tom Copley AM is a Londonwide Assembly Member