London’s next mayor should lobby for stamp duty devolution to capture land value uplift for transport infrastructure investment, the London Assembly regeneration committee has said.
Devolution of stamp duty, it was argued, would help capture land value growth from property developers who often benefit most from infrastructure developments through their knock-on effect on property prices.
The capital’s population is expected to rise from 8.6m to 10m by 2030 and a lack of adequate transport links could limit development growth in some areas, the committee claimed.
The recommendation was announced in a report investigating the impact of TfL’s £360m growth fund for transport improvement projects.
Gareth Bacon, chairman of the Assembly’s regeneration committee, said: “There are signs that TfL’s growth fund has brought forward stalled transport projects and there is a real need for this type of investment to unlock future areas of development in London.”
He said stamp duty devolution was “vital” to ensuring London had a long-term sustainable funding source for infrastructure funding.
The report recommended that TfL should renew the growth fund for another 10 years, with an open and transparent bidding process and clear selection criteria established by TfL.
TfL should also consult local people in a consistent way when proposing new or improved transport projects in regeneration areas, the committee advised.
