What is it about?
Funding gaps impel governments to seek alternative funding sources. Taxing in the 'unearned increment' of land which passively inflates due to population pressure and economic growth is an untapped infrastructure finance source.
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Why is it important?
Climate change, health and unresolved inequality suggest a tempering of UK 'laissez faire' urban development model which, arguably, panders to developer vested interests. Sustainable development impels more upfront transport infrastructure compared to current 'mass housing' or 'dormitory' fossil-fuel orientated sprawl. LVC can help internalise urban development externalities so that land owners and developers pay their 'fair' share. However, circumstances vary and policy needs careful and informed calibration.
Perspectives
After years living abroad, one is struck by UK spatial policy failure, manifest by 1) the decrepit state of regional transport infrastructure and obvious funding needs 2) the comfortable complacency of UK elites (who seem to have pocketed land value uplifts without making any social or innovative contributions). Land Value Capture helps temper inequality, nudge community engagement and safeguard the future.
Dr Simon Hugh Huston
Coventry University
Read the Original
This page is a summary of: Land Value Capture and Tax Increment Financing: Overview and Considerations for Sustainable Urban Investment, European Journal of Sustainable Development Research, July 2018, Lectito BV,
DOI: 10.20897/ejosdr/2666.
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