The Housing, Communities and Local Government(HCLG) Committee of the House of Commons has published the report from its inquiry into land value capture, with conclusions including that ‘There is scope for central and local government to claim a greater proportion of land value increases through reforms to existing taxes and charges…’, and that ‘Government should give further consideration to the future implementation of a Local Infrastructure Tariff’.
House of Commons writes:
Its key conclusions and recommendations include the following:
- There is scope for central and local government to claim a greater proportion of land value increases through reforms to existing taxes and charges, improvements to compulsory purchase powers, or through new mechanisms of land value capture.
- The Land Compensation Act 1961 requires reform so that local authorities have the power to compulsorily purchase land at a fairer price.
- Where public land is put forward for residential development, it is important to ensure that the maximum value is captured for new infrastructure and public services. This may not always equate to selling public land to the highest bidder.
- The Government should give further consideration to the future implementation of a Local Infrastructure Tariff.
- The Government should commission a cross-departmental project to consider how to capture land value increases on existing properties.
