“If the Government is serious about supporting businesses of all sizes, promoting growth and reducing costs for consumers, it must urgently address our outdated and unfair business rates system.” [Alex Baldock, CEO Currys]
Chancellor Jeremy Hunt has failed to offer reform to the business rates system despite mounting pressure from retailers in what Currys chief Alex Baldock termed a “deeply disappointing” decision. Baldock said that in failing to address “the unfairness of our business rates system”, Hunt had “missed an opportunity to support retailers at a time of economic uncertainty… If the Government is serious about supporting businesses of all sizes, promoting growth and reducing costs for consumers, it must urgently address our outdated and unfair business rates system.”
Rebecca Evans told the Senedd that the bill would address many of the limitations of local taxation systems in Wales. The finance minister said the bill will establish a five-yearly cycle of revaluations for council tax which is still based on property values from 2003…Peredur Owen Griffiths called for council tax and business rates to eventually be replaced by a land value tax (LVT) – a more progressive tax that would fall on land owners. The South Wales East MS highlighted research by Bangor University into the feasibility of introducing such a tax. The Plaid Cymru politician said LVT would bring revenue to Wales from land owned by the Crown Estate rather than see it “syphoned away” to the UK Treasury.
Land value is created by the whole community. The Labour Land Campaign is a voluntary group working within the labour movement for a switch away from taxes on economically productive activities like work, trade, enterprise and investment, and onto unearned land wealth. A tax on the value of land, irrespective of any improvements made by its owners (such as buildings) is fair, easy to administer and more economically efficient than taxes on productive activity. All land should be valued and taxed according to its assessed value. As well as making it possible to reduce or abolish unfair, economically inefficient taxes, this will help repair the broken UK land market – characterised by speculation and underuse – that has deprived many citizens of secure, decent accommodation, for the benefit of a small-but-powerful, wealthy minority.
All of which would very likely be highly unpopular in these parts – as not only are there high land values in the Sid Valley, but many residents are of course retired and ‘not productive’! And yet there are also ‘economically productive activities like work, trade, enterprise and investment‘ happening even in these parts – and with the business rates and council tax systems seen by more and more as ‘broken’, we will have to see how things develop across the Bristol Channel in Wales…