Local Liberal Democrat Economic Development Spokesperson Cllr Keith Aspden has described the plans as “exactly the sort of national policy we need to boost local investment and ensure businesses in York thrive”.The report –Taxing Land, Not Investment – calls for the abolition of business rates and its replacement with a tax on land values, the Commercial Landowner Levy (CLL). The levy would remove buildings and machinery from calculations and tax only the land value of commercial sites, boosting investment and cutting taxes for businesses.Liberal Democrat members will debate and vote on the proposals at the party’s Autumn Conference in Brighton this month.Liberal Democrat Economic Development Spokesperson Cllr Keith Aspden said:
“Time and again I have heard concerns about the impact of business rates on high streets and the wider local economy.“It is the responsibility of the current Conservative Government to ensure that our businesses are able to thrive, but ministers are not doing anywhere near enough.
“Liberal Democrats demand better. That is why we are campaigning nationally and locally to create the environment needed for local businesses to continue to grow and create even more jobs in York.”
York-born Liberal Democrat leader Vince Cable MP added:
“Business rates were a badly designed policy to begin with and have become an unacceptable drag on our economy. They are a tax on productive investment at a time of chronically weak productivity growth, and a burden on high streets struggling to adapt to the rise of online retail.”The full report can be found here.
Key recommendations from the report include:
- Business rates should be abolished and replaced by a Commercial Landowner Levy based on the value of commercial land only
- The levy should be paid by owners rather than tenants
- Non-residential stamp duty should be scrapped to improve the efficiency of the commercial property market
- Commercial land should be taxed regardless of whether the buildings above it are occupied; the tax should also apply to unused and derelict commercial land
- The manufacturing and technology sectors would be the most significant beneficiaries of the CLL, receiving tax cuts of over 20%. Retailers in struggling areas would also receive a boost.
- The CLL would represent a tax cut initially, but is likely to be at least revenue-neutral in the long-term. Redistribution between local authorities would be adjusted to ensure no change in local funding.