Friday, Apr 24, 2015

The productivity crisis in the Uk has at its heart the Land Market

FT: Capital and labour are already deregulated, now is the time for land

The FT's Lead Editorial has a swingeing indictment of the problems facing the UK, which has been forgotten in the charade of our election commentary. The fundamental issue to this is the Land (and Housing) market. We need cheaper homes and a free land market to stimulate enterprise and development and as the FT recognises the only way to do this properly is to introduce a Land Value Tax. The UK productivity crisis is the worst in the developed world and is masking the so called 'jobs miracle'.

Posted by pete green @ 08:34 AM (3491 views)
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11 Comments

1. icarus said...

"the only way to do this properly is to introduce a Land Value Tax". Another FT editorial on productivity yesterday claimed the way to do all 'this' was to free up the planning system.

Friday, April 24, 2015 08:48AM Report Comment
 

2. pete green said...

The planning system and the Land value tax are intertwined. An LVT will reduce the huge unearned income gained from planning permission and reduce its significance, it will lover land prices and lower the barriers for people competing in the land market - using free market principles to make developers concentrate on the real business of development. It will compensate those that loose out from planning decisions reducing the howls of outcry from those that may loose their privilege. It will also force developers to make much more efficient decisions on land use and to some extent make the 'free market' much more effective and internalise 'planning issues' into the free market. Land can never be a 'free market' as it is the mother of all monopolies to quote Winston Churchill. But a lot can be done to free it up and make the market more efficient for the UK and our competitiveness.

Friday, April 24, 2015 09:27AM Report Comment
 

3. icarus said...

My point is that the FT taken as a whole is fuzzy about this. Is it either/or, or both? And earlier in the week (Monday?) the FT discussed the reasons for low productivity without mention of either LVT or Planning.

Friday, April 24, 2015 10:09AM Report Comment
 

4. clockslinger said...

F**k the FT. More theory than a business studies A level. Don't get excited cause it won't ever happen, and one reason (amongst many others) why is that all Murdoch's other publications would cry wolf the minute any political party suggested it.

Friday, April 24, 2015 03:01PM Report Comment
 

5. Northshore said...

At least the basics are starting to reignite some thought and reporting:
http://www.economist.com/news/briefing/21647622-land-centre-pre-industrial-economy-has-returned-constraint-growth

e.g. Saudi housing costs to halve with new land tax. It's a start, and if Saudi Arabia can do it...
http://www.arabianbusiness.com/saudi-housing-costs-halve-with-new-land-tax-586779.html

Friday, April 24, 2015 08:19PM Report Comment
 

6. cyril said...

I didn't read the article but the reason development control was introduced (in the 1930s?) was because people were fed up with developers building all sorts of hideous things all over the place and they wanted development done in a more co-ordinated fashion. Pete green is right about land not being a free market.
The newspaper industry is finished and they can't afford to do any serious journalism any more hence the proliferation of celebrity nonsense and opinion pieces which are very cheap to produce.

Saturday, April 25, 2015 09:37AM Report Comment
 

7. letthemfall said...

Probably truer to say that the rentier class is at the heart of the productivity crisis, for which land is the main source of power.

Monday, April 27, 2015 11:30AM Report Comment
 

8. libertas said...

Again, land is already hugely taxed. Council Tax and business rates are already defacto land value taxes.

And land is more regulated than anything else with our planning system.

What the economy needs is less regulation and far, far less taxation.

END VAT on household extensions and alterations to listed buildings for a start. Then see the economy boom.

Monday, April 27, 2015 11:20PM Report Comment
 

9. libertas said...

Cyril. The 1930's provided us massive housing provision. Since the 1930's we have built next to nothing in comparison. I live in North East London, where the boundaries of London were set during that 1930's boom!! The only modern building is for infill sites!!!!

Monday, April 27, 2015 11:21PM Report Comment
 

10. libertas said...

Pete Green, land value rises from planning ARE ALREADY CAPTURED via Community Infrastructure Levy and s106 payments. LVT is not required for that purpose.

Monday, April 27, 2015 11:37PM Report Comment
 

11. This comment has been removed as it was found to be in breach of our Blog Policies.

 

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