On Sunday 15th April we held our national gathering at the Friends of the Earth offices in London.
This was the day after our buzzing and well-attended tour of London’s housing crisis, organised as part of our Week of Action for Land Justice. Many people at the meeting had organised or taken part in the tour, and celebrated its success long into the evening… I think Nick Hayes summed up the feeling in the room when he said “I’m so happy and tired I think I’m going to cry!”
Hypothecation – I’d never hear about this before but it maybe of interest connected to issues around Land Value Tax and Land Uplift Capture or whatever else we are calling ways of preventing land speculators from profiteering these days…
The concept of hypothecation, where revenues from specific taxes would be ringfenced for a particular expenditure purpose – and publicly communicated in this way – has traditionally been unpopular with many. This is because of the notable challenges, relating to complexity, transparency, and public perceptions, with which it is associated. However, there is growing interest in how hypothecation could help engage with tax policy and increase public trust in the system.
Many people who call for a change in the way land is taxed also have called for the new tax income to be ring-fenced for using on connected issues. E.g. a land value tax going towards buying land for self build homes or re-commoning or supporting entrant farmers etc.
Increases in land value can be divisive as owners benefit while everyone else pays the cost.
Communities create the value of land yet do not benefit from it. In this session we will collaboratively explore three ways to address this problem by looking at Land Value Tax, ‘Planning Gain’ taxes and rethinking ownership.