Preparing to Pilot Land Value Taxation in Britain

This was the second year of a three-year research project to help prepare Great Britain for the start of an implementation of land value taxation (LVT). The first year’s report (WP00AV1) concluded that pilots of LVT were essential before a decision on nationwide implementation could be made.

Work during 2001 consisted of visits to Denmark and Pennsylvania (PA) to study the technical and political environments there and compare them with the status of systems in Britain. Most of this report concerns the lessons to be learned from PA cities that have—or are seeking to adopt—LVT.

Liverpool City Council had in June 2000 voted to ask Government to be allowed to pilot LVT, so research focused on Liverpool and included face-to-face interviews with business owners and discussions with city and other local officials.

The main conclusion of this report is that central government must enable local partnerships of property tax stakeholders, especially business leaders, to devise their own rules for funding regeneration. Taxation powers are an essential back up to voluntary property owner levies.