The current tax system - Land Value Tax Campaign

Fairer Shares campaign pack

Written on 20 October 2022. Posted in Council Tax.

From our point of view, reform of the Council Tax is very much a second best, but the proposals of the Fairer Shares Campaign would at least be a move in the right direction. A more robust property tax could raise additional revenue, and make it possible to reduce, or preferably get rid of, the worst of the damaging taxes which have been crippling the UK economy since the end of the Second World...

The weakness of the Laffer theory

Written on 4 October 2022. Posted in Deadweight costs.

The Laffer curve is based on the theory that if the rate of tax is reduced, then more tax is collected. In so far as it is true, it is an expression of the fact that, with the exception of a tax on the rental value of land, taxes give rise to a deadweight loss; the tax suppresses economic activity that would otherwise have taken place. This is either because locations become sub-marginal, as is...

“Please sir, may we have some more?”

Written on 25 April 2021. Posted in Help to Buy.

… shouted the land bankers home builders, and their wishes were granted. From the BBC: A mortgage guarantee scheme to help people with small deposits get on the property ladder is set to be announced at next week’s Budget. The government will offer incentives to lenders, bringing back 95% mortgages which have “virtually disappeared” during the pandemic, the Treasury says. Chancellor...

UK free ports – the tax breaks will all be capitalised into higher rents and land prices.

Written on 13 March 2021. Posted in Business Rates.

The consultation was full of glossy waffle: The government is working to boost economic activity across the UK, levelling up towns, cities and regions across the country. As part of this, the government wants to establish Freeports, which have different customs rules than the rest of the country, that are innovative hubs, boost global trade, attract inward investment and increase productivity. In...

Cracking down on low pay.

Written on 5 August 2020. Posted in VAT and National Insurance.

A new report from the Resolution Foundation Companies says that employers who fail to pay the minimum wage should be punished more harshly in an effort to crack down on low pay. Oh dear.

Fishing after Brexit

Written on 5 August 2020. Posted in Business Rates.

As the post-Brexit negotiations proceed, or, apparently, fail to proceed, fishing has emerged as a major topic of disagreement. Yet there could be a simple solution. British fishing grounds belong to the British people, not to British fishermen or British owners of fishing boats, or owners of fishing boats registered in British ports. The British people are entitled to the value of their fishing...

Business rates and their effects

Written on 5 August 2020. Posted in Business Rates.

In view of the announcement of Business Rate reform in the Queen’s Speech, a potted summary of the imact of the tax on business property is presented here.

Employers’ Burden – update 2019

Written on 5 August 2020. Posted in VAT and National Insurance.

Our tax system is so misguided that it doubles the cost of employment and government spending, as the bar chart shows. The topmost bar is for those with a nominal salary of £10,000 per year; the division is into percentages. For each line of gross salary the length of the line is the total cost to the employer, including employers’ National Insurance contributions. The blue portion of each line...

Proposed UBR reform

Written on 5 August 2020. Posted in Business Rates.

The Queen’s speech referred yesterday to reform of the business rate (the UBR). Mentioned in particular were in increase in the business rates retail discount from one-third to 50p, and revaluations every three years.

Doncaster floods

Written on 5 August 2020. Posted in Farming.

Floods like this week’s at Doncaster are a regular occurrence. The mechanism is heavy rainfall on high ground, followed by excessively fast run-off. The effects can be greatly mitigated through measures which retain the water so that it is released more slowly. Most important of these to reduce the extent of uplands grazing, which result in loss of tree cover below the tree line and scrub...

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