Salway attacks land tax
Francis Salway, chief executive of Land Securities, Britain's biggest property company, has attacked government plans to introduce a land tax.
Salway told delegates to the Estates Gazette development conference in London last week that the "planning gain supplement" proposed by Bank of England economist Kate Barker last spring was "out of date".
In a report for the Treasury on housing supply, Barker proposed a tax to be levied on the uplift in land values at the time planning permission was granted. Her suggestions are being studied by the Treasury, with a statement expected in autumn.
"We don't think simple formulae like that will work," said Salway. Citing LandSec's giant development site at Ebbsfleet in north Kent, he pointed out that the land cost £25m, but readying the old cement quarry for 10,000 homes would cost between £200m and £270m.
On top of this, Salway said providing schools and other "social fabric" would cost between £65m and £90m.
"You can see how big the costs are on developments. A planning gain supplement would simply stop developments of this size," he claimed.
Salway also said major infrastructure improvements should not be paid for by developers: "National and regional infrastructure should be provided by government."
Source: Estates Gazette, 05.03.2005
Also see: Development Land Tax
