Stamp duty should go up by a further 4% at sites near transport hubs to pay for regeneration and infrastructure improvements, according to the Town and Country Planning Association.
Speaking at a conference on urban regeneration organised by the Henry George Foundation, TCPA president David Lock said a supplementary stamp duty “might be the simplest way” to fund vital transport links.
“An extra 1% on transactions on undeveloped land in designated areas and an extra 4% on developed land would go to special regeneration vehicles to pay their loans,” he said.
The tax would not hurt developers, he added. “If they are given enough warning the tax will bite out of land values.”
But delegate Andrew Tyler, development partner at Knight Frank, said the proposals would be fiercely opposed by the industry. “It will only serve to hamper liquidity in places that most need the investment.”
Other proposals raised at the conference included a levy on the holdings of landowners to encourage regeneration of fallow sites, and a top-up on business rates to pay for infrastructure projects.
EGi News 01/11/02
