Development land tax idea mooted again
Speculation is growing that the Chancellor could unveil a development land tax in his pre-Budget proposals on Monday.
According to a report in the Times this morning, the tax would raise up to £3bn per year, which would be channelled back into a huge housebuilding programme.
The tax could take the form of a 20% levy on profits on land sold for development.
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The Treasury refused to comment on the story, but it is known to be keen on implementing the Barker report that called for an extra 70,000 -120,000 new houses to be built every year.
Newspaper stories that a development land tax is being planned have been reported before, earlier in the year, and they sparked an angry response from the property industry.
British Land's John Ritblat described the proposal as "utter madness" and suggested that it could stifle development.
