Madeline Grant writes for The Telegraph
At present, local authorities wield considerable power over new housing approvals. Yet because taxes are, in the main, levied and collected at a national level, local councils do not always see joy the benefits of new housing and the fiscal advantages of new residents moving into an area – though they will feel the additional pressure on local infrastructure and services.
Yet a few changes to our tax system could flip these perverse incentives on their head, by following the principle that revenue from housing (and commercial) development should, wherever possible, remain in the area where it is generated. This would mean devolving taxes like capital gains, stamp duty, inheritance tax and business rates to the local level.
Read the full article here. (££)
Further IEA Reading: The Housing Crisis: A Briefing