Baroness Bennett of Manor Castle (GP)

Okay—I am not going to get that far into the history. I declare an interest in that land value tax is a long-term Green Party policy and one that I am very happy to talk about at length, but I am not going to do that because it is not what this amendment would do. However, it is worth thinking about the fact that the problem with how we tax land goes back a very long way. There was a royal commission on the housing of the working classes set up in 1885; it was the first time that an inquiry had referred to land value taxation—it was called site value rating then—and it said that this would be a better way to solve a housing crisis. These are issues that we have been wrestling with and failing to solve for a very long time. My final point is that this amendment by itself would not deal with the crunching, terrible elephant-in-the-room issue of council tax, but it would start to provide the Government with a way to open up these issues. This is all regarded as too politically difficult, too challenging and too complicated to explain—I know what it is like to try to explain land value tax in 15 seconds, because it is a challenge. We are now 35 years on from when council tax was created. It was an emergency crunch measure created by the Treasury after the political disaster of the poll tax. It is a deeply regressive tax. Someone living in a home worth £100,000 pays an effective tax rate five times as high as someone in a £1 million property. The average net council tax is only 2.7 times higher for the top 10% of properties than for the bottom 10%. This is something that we have to address. This amendment would not address all, or even the bulk, of it, but it would start to inch us into a space where we could tackle some issues that desperately need to be tackled.