Town Planning and Rating on Unimproved Values

Progress, Volume IX, Issue 11, 1 July 1914, Page 1151

Town Planning and Rating on Unimproved Values

We have noticed from the daily press that complaints are being made to the present means adopted by local authorities for raising necessary revenue by rating on unimproved value. These complaints show how the movement in favour of town-planning, which we have so consistently advocated, is spreading, and we are glad to see it. The supporters of the rating of land on its improved value had a great deal to support their arguments when such a tax was first proposed but, unfortunately, they were not then aware, and probably could not have been aware, of this great oncoming movement in town-planning,- or they would have provided for it by giving a different definition of unimproved land. The remedy, of course, is quite simple and in the hands of the town-planners. It is only necessary to introduce a clause into the

Town-planning Bill, which will, . of course, be brought down by the Government, or introduced by the town-planners this session, providing that gardens, open spaces, etc., shall be exempted from the definition of unimproved land. No one will dispute thai the general idea of compelling the man who will not make use of his land for the general weal of the country, and who sits calmly and indolently by and reaps the benefit of other people's industry, who have enormously ' increased the value of his land by their efforts, should be taxed, and heavily too, with respect thereto. This is perfectly right and just. It must, however, be also clear to all lovers of a clean and healthy .town, and to all right-minded citizens, that open spaces, gardens, etc., are an absolute necessity, and that the citizen who encourages and strives to create such places is a public benefactor, and, instead of being taxed for doing this work, should rather be rewarded. He is in a very different position to the person who buys land for speculative purposes, waits till it has reached a greater value than he paid for it, and then sells, reaping what has Been designated the "unearned increment," i.e., the benefit of other people's work to which he has contributed not a jot. This man of course deserves to be taxed to the very fullest extent. No doubt town-planners will be met with the objection that if rating on unimproved values is to be abolished, the local bodies will derive so much less revenue. This objection is very simply answered. It is not necessary to abolish the tax but merely to alter the definition of unimproved land so that it should not include as it does now, necessary and desirable open spaces, gardens, etc. The extent of these spaces to be exempted from the operation of the Rating Act can be defined, and the loss of revenue would be very small. If there is one particular kind of person that the town-planners abhor above any other it is the land speculator who, for purely selfish purposes and with a complete and utter disregard for the general weal, enriches himself at the expense of the people. This man must be exterminated, and this can be done by increasing the tax on unimproved values, in the right sense of the word "unimproved," to such an extent that it will no longer "pay" to rob the public, and we use the word "rob" advisedly. If the public thoroughly understand the meaning of the word "improvement," as we are sure they will, and if they will only realise how the land speculator and jerry builder have them by the throat and filch their hard-earned money and labour from them, they will not hesitate to adopt town-planning and approve, with no uncertain voice, not only a Town-planning Act, but an amendment of the Hating Act in the direction we have indicated.