Martin Wolf ( 16th September 2024) is right to say that for a credible growth plan Rachel Reeves should look again at taxation. The place to start is with taxation of property and land in particular.

Here Land Value Tax (LVT) can stimulate economic growth by encouraging efficient land use, reducing speculation, and promoting investment in productive activities. It can also generate stable revenue for public spending without distorting economic decisions, potentially leading to more equitable and sustainable development.

LVT is also considered a progressive tax because it primarily targets landowners, who are often the wealthier individuals or entities. By taxing the unimproved value of land, LVT ensures that those with more valuable land holdings contribute more, thereby reducing income inequality and promoting a fairer distribution of wealth.

Labour should also consider a LVT as part of their review into reforming Council Tax and business rates. This proposal aims to ensure sustainable funding for local government in the long run.