A land value tax should pay for London's new Garden Bridge

The proposed garden bridge. Image: Heatherwick Studios.

By 2018, you should be able to leave London’s Garden Bridge to the north onto Arundel Street. As you leave behind the tourists having a nice day out, or turn away disappointed because the bridge is closed for a private corporate event, you should remember that the biggest winners from the £60m of public funding will be the developers and owners of places like the brand new Arundel Great Court.

This £351m development will feature a new five-star hotel and 151 luxury flats, and could be completed around the same time as the bridge. In their summary of the business case for the Garden Bridge, Transport for London (TfL) notes that projects of this kind usually make the local area more desirable, and so drive up land and property values. TfL estimates that the value of the Arundel Great Court development could rise by 5 per cent if it’s built.

Consider, too, all the people who already own land in property in the area. They should be able to charge even higher rents to tenants, and command a higher price if they choose to sell their office space or flat, all without lifting a finger.

TfL reckon the total one-off uplift in land and property values for businesses and residents brought about by the new bridge will be in the order of £84m. That’s more than the public money that TfL and the Treasury are contributing. Their £60m, drawn from transport budgets, will help a charitable trust build a bridge with little transport value and no public right of way, and which results in a £84m windfall to private interests.

(As an aside, in the midst of a desperate housing crisis, on page 97 of this document, TfL describes this windfall to wealthy land and property owners as a “large positive”. They add this windfall to the positives in their cost-benefit analysis. Given the mayor’s declared concern about high house prices, shouldn’t his transport agency be looking at rising land and property prices as a negative?)


Why can’t the Mayor capture this windfall gain to offset the public subsidy for the bridge? TfL hope to use planning obligations on new development to capture some of it – but that won’t go very far.

City Hall and TfL have been looking at Tax Increment Financing for regeneration in nearby Vauxhall and Nine Elms. This mechanism enables them to borrow money from the government to invest in regeneration: once the scheme is completed, it will result in greater tax revenues, which the government can use to paying off the borrowing. There’s no suggestion of that being used here.

But there is another option: land value tax. If the mayor would back those campaigners calling for such a tax, he could use it to capture much more of the gain, potentially even reclaiming the £60m in full.

One simple way to do this would be to tax all land owners based on the rental income from their land, as used to happen. If the land owner is occupying, not renting, the space (as with a home owner for example), you can instead tax the “imputed rent”: that is, the amount they could theoretically charge if they did let it out.

Because the bridge will increase its neighbours’ potential rents then, were such a scheme to be implemented, they would have to pay more in tax. In return for the taxpayer’s contribution to the construction of a fancy new bridge on their doorstep, they would have to chip a little more back into the public purse.

A land value tax wouldn’t only help TfL finance this scheme. It could also act as a disincentive to investors looking to speculate on land and property, and encourage investors hoarding development sites to get on and build something. This could all help stabilise or even reduce house prices in an area of London where they are beyond ridiculous.

City Hall could use the revenue to build more social housing along the South Bank, or to build a much more useful pedestrian and cycling bridge from Canary Wharf to Surrey Quays, where a new crossing is actually needed.

If the mayor’s principal aim is to build his legacy, TfL’s plans will probably do the trick. But if he wants to build a better transport network and a more affordable city, he should seriously consider backing the campaign for a land value tax.

 
 
 
 

12 things we learned by reading every single National Rail timetable

Some departure boards, yesterday. Image: flickr.com/photos/joshtechfission/ CC-BY-SA

A couple of weeks ago, someone on Twitter asked CityMetric’s editor about the longest possible UK train journey where the stations are all in progressive alphabetical order. Various people made suggestions, but I was intrigued as to what that definitive answer was. Helpfully, National Rail provides a 3,717 page document containing every single timetable in the country, so I got reading!

(Well, actually I let my computer read the raw data in a file provided by ATOC, the Association of Train Operating Companies. Apparently this ‘requires a good level of computer skills’, so I guess I can put that on my CV now.)

Here’s what I learned:

1) The record for stops in progressive alphabetical order within a single journey is: 10

The winner is the weekday 7.42am Arriva Trains Wales service from Bridgend to Aberdare, which stops at the following stations in sequence:

  • Barry, Barry Docks, Cadoxton, Cardiff Central, Cardiff Queen Street, Cathays, Llandaf, Radyr, Taffs Well, Trefforest

The second longest sequence possible – 8 – overlaps with this. It’s the 22:46pm from Cardiff Central to Treherbert, although at present it’s only scheduled to run from 9-12 April, so you’d better book now to avoid the rush. 

  • Cardiff Central, Cardiff Queen Street, Cathays, Llandaf, Radyr, Taffs Well, Trefforest, Trehafod

Not quite sure what you’ll actually be able to do when you get to Trehafod at half eleven. Maybe the Welsh Mining Experience at Rhondda Heritage Park could arrange a special late night event to celebrate.

Just one of the things that you probably won't be able to see in Trehafod. Image: Wikimedia/FruitMonkey.

There are 15 possible runs of 7 stations. They include:

  • Berwick Upon Tweed, Dunbar, Edinburgh, Haymarket, Inverkeithing, Kirkcaldy, Leuchars
  • Bidston, Birkenhead North, Birkenhead Park, Conway Park, Hamilton Square, James Street, Moorfields
  • Bedford, Flitwick, Harlington, Leagrave, Luton, St Albans City, St Pancras International

There is a chance for a bit of CONTROVERSY with the last one, as you could argue that the final station is actually called London St Pancras. But St Pancras International the ATOC data calls it, so if you disagree you should ring them up and shout very loudly about it, I bet they love it when stuff like that happens.

Alphabetical train journeys not exciting enough for you?

2) The longest sequence of stations with alliterative names: 5

There are two ways to do this:

  • Ladywell, Lewisham, London Bridge, London Waterloo (East), London Charing Cross – a sequence which is the end/beginning of a couple of routes in South East London.
  • Mills Hill, Moston, Manchester Victoria, Manchester Oxford Road, Manchester Piccadilly – from the middle of the Leeds-Manchester Airport route.

There are 20 ways to get a sequence of 4, and 117 for a sequence of 3, but there are no train stations in the UK beginning with Z so shut up you at the back there.

3) The longest sequence of stations with names of increasing length: 7

Two of these:

  • York, Leeds, Batley, Dewsbury, Huddersfield, Manchester Victoria, Manchester Oxford Road
  • Lewes, Glynde, Berwick, Polegate, Eastbourne, Hampden Park, Pevensey & Westham

4) The greatest number of stations you can stop at without changing trains: 50

On a veeeeery slow service that calls at every stop between Crewe and Cardiff Central over the course of 6hr20. Faster, albeit less comprehensive, trains are available.

But if you’re looking for a really long journey, that’s got nothing on:

5) The longest journey you can take on a single National Rail service: 13 hours and 58 minutes.

A sleeper service that leaves Inverness at 7.17pm, and arrives at London Euston at 9.15am the next morning. Curiously, the ATOC data appears to claim that it stops at Wembley European Freight Operations Centre, though sadly the National Rail website makes no mention of this once in a lifetime opportunity.

6) The shortest journey you can take on a National Rail service without getting off en route: 2 minutes.

Starting at Wrexham Central, and taking you all the way to Wrexham General, this service is in place for a few days in the last week of March.

7) The shortest complete journey as the crow flies: 0 miles

Because the origin station is the same as the terminating station, i.e. the journey is on a loop.

8) The longest unbroken journey as the crow flies: 505 miles

Taking you all the way from Aberdeen to Penzance – although opportunities to make it have become rarer. The only direct service in the current timetable departs at 8.20am on Saturday 24 March. It stops at 46 stations and takes 13 hours 20 minutes. Thankfully, a trolley service is available.

9) The shortest station names on the network have just 3 letters

Ash, Ayr, Ely, Lee, Lye, Ore, Par, Rye, Wem, and Wye.

There’s also I.B.M., serving an industrial site formerly owned by the tech firm, but the ATOC data includes those full stops so it's not quite as short. Compute that, Deep Blue, you chess twat.

10) The longest station name has 33 letters excluding spaces

Okay, I cheated on this and Googled it – the ATOC data only has space for 26 characters. But for completeness’ sake: it’s Rhoose Cardiff International Airport, with 33 letters.

No, I’m not counting that other, more infamous Welsh one, because it’s listed in the database as Llanfairpwll, which is what it is actually called.

 

This sign is a lie. Image: Cyberinsekt.

11) The highest platform number on the National Rail network is 22

Well, the highest platform number at which anything is currently scheduled to stop at, at least.

12) if yoU gAze lOng into an abYss the abySs alSo gazEs into yOu

Image: author's own.

“For I have seen God face to face, and my life is preserved”, said Thomas.

Ed Jefferson works for the internet and tweets as @edjeff.

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