A Land Value Tax for Wales? Claims and contexts

Goodwin-Hawkins, Bryonny ORCID: https://orcid.org/0000-0002-9399-5486 (2026) A Land Value Tax for Wales? Claims and contexts. Working Paper. Countryside and Community Research Institute, Cheltenham. (Unpublished)

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Abstract

Land Value Tax (LVT) is frequently proposed as a reform to property taxation on the grounds of economic efficiency and social equity. Unlike conventional property taxes – including Council Tax and Non-Domestic Rates in Wales – LVT is levied on the unimproved value of land. The underlying rationale is that land value largely arises from external social and economic factors rather than through individual effort. But although LVT has strong theoretical foundations, its practical implementation remains limited, especially in high-income countries, and there is limited empirical evidence on its real-world outcomes. This working paper examines the key claims made in favour of LVT and assesses the extent to which they are supported by empirical evidence, with specific attention to their relevance for Wales. Drawing on a systematic review of international studies published since 1999, the paper evaluates claims that LVT improves economic efficiency and promotes equitable outcomes. The findings show that some outcomes, such as shifting tax burdens towards higher-value land or reinforcing development incentives in high-demand urban areas, are plausible under certain conditions. However, robust evidence of broader or transformative effects is limited. In practice, many of the claimed benefits of LVT are highly dependent on tax design, valuation, planning systems, and local market conditions. The paper then considers how Welsh characteristics could influence the potential performance of an LVT. It concludes that an LVT for Wales should not be viewed as a standalone or transformative solution, but rather as a policy option with localised impacts and subject to trade-offs. Clear policy objectives, careful valuation design, and further Wales-specific analysis are essential before any reform is pursued.

Item Type:	Monograph (Working Paper)
Uncontrolled Keywords:	Land Value Tax; Property taxation; Local government finance
Subjects:	H Social Sciences > H Social Sciences (General)
Divisions:	Schools and Research Institutes > Countryside and Community Research Institute
Depositing User:	Bryonny Goodwin-Hawkins
Date Deposited:	23 Feb 2026 08:54
Last Modified:	23 Feb 2026 09:00
URI:	https://eprints.glos.ac.uk/id/eprint/15859

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