This is a very good reason to bring in land value tax nationwide. Once the land values are taxed it shouldn't be too hard to add a supplementary tax based off the land value to go to the local authority.
This way the local authority will have a tax base that they can use to borrow against for projects such as a metro that will increase land values. They will also be incentivised to reduce barriers to making these projects happen and anyone who's land drops in value will get a tax reduction both locally and nationally.
I would like to see each scheme added onto any tax bill so that it is clear where the money is going but that will also help to hold local politicians accountable.
I suspect HMT would resist local borrowing as when (not if) the default comes it always ends up back on the Treasury books. Look at Birmingham - a very poorly managed city. They’d be tempted to borrow to pay their bin collection company and then threaten default and then ask HMT for a bail out, which Labour would be inclined to give if Birmingham has some marginal seats.
This is a very good reason to bring in land value tax nationwide. Once the land values are taxed it shouldn't be too hard to add a supplementary tax based off the land value to go to the local authority.
This way the local authority will have a tax base that they can use to borrow against for projects such as a metro that will increase land values. They will also be incentivised to reduce barriers to making these projects happen and anyone who's land drops in value will get a tax reduction both locally and nationally.
I would like to see each scheme added onto any tax bill so that it is clear where the money is going but that will also help to hold local politicians accountable.
I suspect HMT would resist local borrowing as when (not if) the default comes it always ends up back on the Treasury books. Look at Birmingham - a very poorly managed city. They’d be tempted to borrow to pay their bin collection company and then threaten default and then ask HMT for a bail out, which Labour would be inclined to give if Birmingham has some marginal seats.
Couldn’t we introduce a land value tax collected and used at the local authority level immediately?
As soon as HS2 runs, relocate parliament to Birmingham for twenty years while the House of Commons is made safe.
That is bound to help Make the West Midlands Great Again.