I PROPOSE that annual ground rent (AGR), together with a three pence in the pound reduction in income tax, replaces council tax. The “public value of land” is a combination of the resources supplied free by nature plus the value of services generated by society. This can be compared to capital gains on property.

At one time, everyone relied only on the productive rent of land with the user of the land directly passing on a portion of the rent to benefit wider social needs.

However, the big landowners had the wealth and the power to influence government to progressively change the law. Laws were gradually introduced creating new taxes on wages and profit on enterprise that eventually totally replaced land rent. Private landowners were thus able to divert and retain for themselves the “public value” accruing from the increasing value of land.

All land, whether on Sauchiehall Street or on the tap o’ Ben Nevis has an economic or aesthetic rental value. The scale of rent measures the availability of services and value at each location.

As more schools, roads, hospitals, airports, ground transport links and other infrastructure are created, the “public value” of land keeps on rising, with the landowners retaining this increasing “public value” as private capital gains.

The burden of new taxes falls increasingly on income tax, VAT, National Insurance contributions etc which are paid by the general public while the big landowners and big business have the money and resources to avoid much of these taxes.

Land is fixed and cannot move, so by applying a charge on the rental value of the land the socially generated “public value” can be progressively returned to the public domain to fund government services and limit tax avoidance.

The price of property has two elements; the price of the dwelling/development and the value of the land itself. It is the changing value of the land that primarily alters the price. To maintain realistic valuations, all land should be assessed on a regular basis – Scotland currently has a viable Land Valuation Appeals system and modern computer based geographical information mapping systems could readily provide a detailed Land Register.

To replace council tax and return the “public value” of land to the common good the proposed revenue system is termed AGR and should be charged on the assessed value of each plot of land.

This valuation would take into consideration the location, type, usage and social desirability of the plot of land and reflect its market value. Scotland has approximately 4,600 square kilometres in urban use.

Initially, there are two methods of applying AGR, with both being applied to the value of the land alone to provide simple, progressive, low-collection-cost means of funding government. One method uses a fixed rate of say 80 pence per square metre payable on every £20 of land value. AGR could help raise £3.68 billion to fund local public services.

The second method uses a five per cent fixed percentage rate of the land valuation to determine the AGR due. Utilising the method, two three case studies could be as follows. Case one: Low income, high-density dwelling in Glasgow – savings of £508. Case two: Average income, average price dwelling in East Lothian – savings of £171. Case three: High-income, high-price dwelling in Aberdeenshire – pay additional £5,664.

AGR could raise £3.15bn to fund local government services. In conjunction with AGR, a three pence reduction in income tax would provide some £342 million to boost local economies. See www.scottishconstitution.scot
Robert Ingram
Aberdeenshire

No reason why our news output should be parochial

I READ, with some amusement, three letters objecting to the proposed Scottish Six in yesterday’s paper (Letters, The National, March 9).

Apparently it will lead to news that is both parochial and supporting the SNP.

In their round-up of the morning’s newspapers yesterday, BBC Radio Scotland announced, with some bewilderment, that only The National did not lead with a follow-up story related to the trial after the death in Cults Academy.

There was an article on page four, reporting the end of the trial and the review to take place.

As readers will know your lead story was a detailed one about the EU response to the truly dreadfully events unfolding in Greece and Turkey as thousands of poor souls try to escape the multitude of bombs being dropped on them by the rest of the world, including the UK.

If the Scottish Six is half as good as The National, I will have no concerns at all. As for the charge of parochialism I offer three words: pot; kettle and black.
Ann Ballinger
Cumbernauld

KEITH Howell’s objection to a Scottish Six (Letters, March 10) seems to be based upon two assumptions: first, that the SNP will form the government of Scotland for ever and ever – wildly unlikely, in my opinion; second, that Scottish journalists are inherently narrow and parochial in outlook – a fine example of the Scottish Cringe.

Having said that, I feel that your mock-up of a Scottish Six didn’t go far enough in disproving Howell’s second assumption.

I would have liked to see more coverage of world and European news and of our nearest neighbours, England, Wales and Ireland.

I also think that, with all its grave faults, there never has been and there never will be a public broadcasting service to equal the BBC at its best. We need to concentrate our efforts on reforming it, not abolishing it. Finally, though I never agree with Keith Howell, I’m glad that he writes often to

The National.

We who support independence spent too much of 2014 talking to ourselves: it’s important to hear dissenting voices.
Douglas Graham
Hamilton

MICHTY me, I micht o kent, a Scottish Sax waeoot a wurd o Scots. A brawly Gaelic section, guid tae see, but nae Scots.

Or wis I supposed tae be contentit wi the wee quip in the fitba section? Weel, whaur else cuid ye pit Scots? The National clearly disnae expek its journalists in the brave new wurld, tae be able tae screive in Scots, speak Scots or report in Scots. Scots fur ae wee ginger dug, nae fit for ilka dey use.

But then, a Scottish Sax unner the BBC is like Scottish Gas, a front for a service totally controlled frae ootbi oor kintra.

Fit we need is a SBC tae serve Scotland, nae anither hauf-wey housie.
George T Watt
Dundee

THE SNP is being accused of political opportunism in voting against Sunday trading for England. Opportunism some say, due to a Holyrood election just around the corner.

But incidentally and for your readers' information, the legislative timetable at Westminster is not decided by the SNP!

Still, however, are the SNP MPs right to be getting involved in legislation that affects England only, bearing in mind Scotland has had Sunday trading for over 20 years?

More than a third of Scotland’s retail workers currently work for large companies with HQs in England, on this point alone it is clear why SNP MPs are rightly getting involved.

In Scotland retail workers are [sometimes] rewarded with higher rates of pay for working on a Sunday and this must be protected, however, the proposed legislation in the Commons could have consequences for these workers, affecting their higher rates of pay for Sunday working. There are in the region of 1,000 retail workers in each of the constituencies in Scotland that could be affected.

Were the SNP MPs to sit in silence and not vote, they could be accused of the sin of omission. However, in voting against this legislation, the

54 SNP MPs rightly represented their constituents’ interests.
Catriona C Clark
Banknock, Falkirk