Latest Public Sector News

14.09.18

Increases in land value is ‘fundamentally about fairness’ and should benefit local communities, say MPs

Significant increases in the value of land resulting from public policy decisions should be shared with local communities say MPs.

The report from the Housing, Communities and Local Government Committee has looked at how this land value increase can be captured to generate extra funding for local infrastructure and affordable housing.

According to government statistics, agricultural land which is granted planning permission for residential use would increase, on average, from £21,000 per hectare to £1.95m per hectare.

The Land Value Capture report published yesterday argues that local authorities and central government should capture a “significant proportion” of this uplift in value so they can reinvest into local communities.

The report recommends reform of the Land Compensation Act 1961 which they say would lead to a “much-needed” boost in housebuilding.

Chair of the committee Clive Betts said: “Land value capture is fundamentally about fairness and necessity.

“Fairness, because the current system allows landowners, through no effort of their own, to make multi-million-pound profits from the substantial increases in land value that arise from public policy decisions, such as the granting of planning permission.

“As these increases are significantly created by the actions of the state, it is right that a significant proportion of this should be shared with the local community.”

The committee argues that there is scope for raising additional revenue from reforms to taxes and charges, new mechanisms of land value capture and reform of the way local authorities can buy land.

In response to the report, Local Government Association’s Housing spokesman Cllr Martin Tett said: “We have long–called for reforms to land compensation and compulsory purchase laws and are pleased that the committee has called for the government to implement several of our recommendations.

“We are also pleased the committee recommends that government provides extra support to councils, through the LGA, to help give local authorities a strong hand in negotiations with developers.

“Government action on these recommendations would have a significant impact in building more homes with the right infrastructures and places that people want to live and work.”

Betts added: “If the government is to meet the challenge of providing enough new homes over the coming years, then they will also need to find the funds for improving the surrounding infrastructure.

“Our proposed package of reforms to taxes and charges will ensure a fair proportion of the increase in value arising from public policy decisions can be used by national and local government to invest in new infrastructure and public services.”

Enjoying PSE? Subscribe here to receive our weekly news updates or click here to receive a copy of the magazine!

Image credit: RoschetzkyIstockPhoto

Comments

There are no comments. Why not be the first?

Add your comment

 

public sector executive tv

more videos >

last word

The importance of openness after Grenfell

The importance of openness after Grenfell

Following the recent Grenfell Tower tragedy, Lord Porter, chairman of the LGA, argues that if the public are going to have faith in the safety testing process then everything must be out in the open more > more last word articles >

public sector focus

View all News

comment

The digital buying community is live

12/11/2018The digital buying community is live

Many of the requirements from buyers posted on the Digital Marketplace were... more >
A force to be reckoned with

12/11/2018A force to be reckoned with

The South Bank plan, which refers to a number of investments and proposed a... more >

interviews

New Dorset Councils CEO on the creation of a new unitary: ‘This is going to be the right decision for Dorset’

05/11/2018New Dorset Councils CEO on the creation of a new unitary: ‘This is going to be the right decision for Dorset’

The new chief executive of one of the new unitary authorities in Dorset has... more >

the raven's daily blog

Social value in public procurement

12/11/2018Social value in public procurement

Rose Lasko-Skinner, researcher at Reform, is currently working on a paper looking at choice and competition in the public sector and has written on how failure to understand r... more >
read more blog posts from 'the raven' >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this feeling of imminent change than the article James Palmer, mayor of Cambridgeshire and Peterborough, has penned for us on p28. In it, he highlights... read more >