Sir Vince Cable opened the proceedings by emphasising the importance of approaching this fiscal reform in a way that was not “tribal or sectarian”. They valued the fact that representatives of four political parties had agreed to form the Group – Liberal Democrats, Conservative, Green and Labour. He noted the idea, in different forms, has been around seemingly forever” but that “very little in reality has happened.” The message was “for goodness sake let’s do something that takes this forward. Let’s have a practical route map”.
Vince noted that the proposal for land value taxation was supported by “a long history of economic reasoning that wants to base taxation on land.” He referred to the report chaired by Nobel laureate Sir James Mirrlees which had argued for “shifting the tax base in this direction on standard economic grounds as well as the practicality of this approach”. But there was also “the social justice point of view: inequalities of wealth, underlying which were land values”.
Vince stressed the problems associated with property development, including distortions in the planning system, the issue of who captures land values, and how to finance infrastructure. He pointed out that an obvious approach to funding was “to look at the appreciation of land value”.