Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 27
27
Deferred
Paragraph: 148
Review local authority funding and taxation, including land value taxes and fiscal devolution
Recommendation
The next Government must embark on a fundamental review of the system of local authority funding and local taxation, exploring all options for removing its current regressive elements and bringing it into the 21st Century. This should include consideration of land value taxes, and of wider fiscal devolution including the option of granting local authorities a specific share of central taxation.
Government Response Summary
The government commits to improving the local government finance system in the next Parliament, requiring significant consultation, but explicitly rejects the consideration of land value taxation.
Paragraph Reference:
148
Government Response
Deferred
HM Government
Deferred
54. The Government is committed, as set out above, to improving the local government finance system in the next Parliament. Any changes to the Settlement or finance system will require significant consultation with the wider local government sector before any such changes are enacted. 55. The Government does not support land value taxation. For businesses, it would mean soaring bills for local high streets where land values are higher; on homes, it would tax local residents for the size of their garden.