The Committee of 1913 were obliged to turn their attention to other
suggestions. They proposed:
(_a_) That all future increases in the expenditure of each Local
Authority which had to be met out of rates should be met by a rate upon
site values instead of upon the existing assessments; and
(_b_) That existing expenditure should be met to a small extent
compulsorily, and to a larger extent at the option of the Local
Authority, in the same manner.
There is no reason why these proposals should not be brought into force
simultaneously with that relating to new buildings and improvements.
They made these proposals conditional upon a substantial increase in the
grants in aid to Local Authorities, especially in necessitous areas,
from the Imperial Exchequer; and they suggested, although they did not
definitely recommend, that a part at least of this increased grant might
be raised by means of an additional tax upon site values. This, I think,
should certainly be done, and such a tax might be wholly or partially
substituted for the present Land Tax and Income-Tax Schedule A, which
are assessed on the wrong basis.
These proposals would, of course, involve the revival and revision of
the National Land Valuation established by the Finance Act, 1909-10,
which should be made the basis of all taxation and rating relating to
real property. This would be both a reform and an economy, because there
are at present several overlapping systems of valuation by Central and
Local Authorities, none of which are really satisfactory even on the
present unsatisfactory basis of assessment. The existence of such a
valuation frequently revised and kept up to date, and independent of
local influences, would be invaluable not only for purposes of rating
and taxation, but also in arriving at a fair price for the acquisition
of land for public purposes, and for the levying of special charges upon
the increased value due to particular public improvements, such as
railway extensions, with which I have already dealt.
I am not one of those who claim for these reforms that they would cure
all the evils from which the community is at present suffering, but I do
believe that there is no other and no better way of removing the
unfairness and the restrictions of our present methods of rating and
taxation or of setting free and stimulating the energies of our people
in the development of the resources of our country.