Orders of the Day — Local Government and Rating Bill

Part of the debate – in the House of Commons at 7:34 pm on 6 November 1996.

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Photo of Mr Tim Smith Mr Tim Smith , Beaconsfield 7:34, 6 November 1996

It is extraordinary that the hon. Member for Newbury (Mr. Rendel) should be happy enough to tell us that his party wants to abolish the uniform business rate at a cost of £12,000 million, and also, in response to my intervention, that he wants to introduce site value taxation, but then to decide that he did not wish to discuss the matter. I am not surprised that he did not want to discuss it, as I have obtained a copy of a document published by the Liberal party in 1990 entitled the "Small Business Charter".

It may amuse the House to hear that the third paragraph of the document states: We plan to become Members of the Exchange Rate Mechanism of the European Monetary System. I do not suppose that that is still their policy, but introducing land value taxation apparently is. The document continues: We propose Land Value Taxation with exemptions for agriculture and domestic properties. With these exemptions Land Value Taxation will be a fairer, more equitable tax, simpler to administrate and decentralist. It will specifically help small businesses because it removes the fear that improving land and property will increase rates. That means that tax will be based initially on the land's full potential value, which is why no account will be taken of any improvements.