“[Land Value Taxation] is such a powerful idea, and one that has been so comprehensively ignored by governments, that the case for thorough official effort to design a workable solution seems to us to be overwhelming. In particular, significant adjustment costs would be merited if the inefficient and iniquitous system of business rates could be swept away and replaced by an LVT [Land Value Tax]” Mirrlees Review, 2011. This publication sets out the characteristics of a good tax system and makes proposals for reform of the system in the UK.
In 2014 Julian Pratt published a paper, ‘Supporting local economies: from Business Rates to Land Value Taxation‘. He saw reform of the Business Rates system as a first step to implement a stewardship economy. The paper describes the many disadvantages associated with the National Non-Domestic (Business) Rates in the UK and suggests replacing them with a Land Value Tax as proposed in the Mirrlees Review. It sets out the impact of such a proposal and suggests a feasibility study be conducted by the Treasury. Such a reform would reduce the burden of rates on premises that make good use of their site, and increase the financial costs for sites that are poorly used, underdeveloped, derelict or being held out of use until their sale price rises. Owners of these sites would either have to make good use of their site or sell it to somebody who will. This would make land available for enterprise, stimulate economic growth in areas where the local economy is struggling and provide employment opportunities for local people.