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NEW powers allowing councils to offer business rate discounts could be used to try to attract investment to Edinburgh’s waterfront, experts say.
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http://www.edinburghnews.scotsman.com/news/rates-cut-can-rejuvenate-waterfront-1-3921908
CityCyclingEdinburgh Forum » General Edinburgh
"Rates cut ‘can rejuvenate waterfront’ "
(13 posts)-
Posted 9 years ago #
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Was reading an article in Grauniad a couple of weeks back looking at similar happening in Rochdale. Not sure what happens after the discounted period ends though.
Posted 9 years ago # -
One of the reasons why the land in the background of the photo is not developed (infilled Western Harbour site) is because of offshore land banking, where the owners buy the land on the cheap after the crash and then sit on it without developing it, paying no UK tax on the land (undeveloped land is zero rated) and paying no or-very little UK tax when it is sold on later at a profit because it is owned through a shell company in the Cayman Islands or wherever (I think in this case it's the British Virgin Islands). They can't easily be forced to sell the land at current prices for much-needed development of, say, affordable housing. And why would they? they can just sit on it until they turn a good profit 5 or 10 years from now.
Because of BVI company law, you can't actually be sure who is behind the shell companies that own the land (on paper). There's a reasonable amount of evidence that it's probably people and/or companies related to the previous, bankrupted owners of the land.
Posted 9 years ago # -
Of course the bigger problem is that land in such places is 'too expensive' - ie overvalued.
Rather than sort that, owners/developers hope/expect Govs (local and national) to give them a subsidy.
Of course land values are often on the balance sheets of the companies that provide many people with their pensions, so there is reluctance all round to let 'the market' fix 'the market price'!
Councils (particularly) will have to balance (carefully) the amount of subsidy and potential future rates revenues.
Similar things were tried trying to get developers to pay a contribution towards the tram...
Posted 9 years ago # -
Of course an even bigger picture is the whole business of land ownership and whether it is 'right' that owners (generally) have the most rights over what or what not to do with 'important' land.
LAs, unfortunately, are sometimes keener on 'any' development if it will bring in income - irrespective of style, scale or function!
Posted 9 years ago # -
Of course land values are often on the balance sheets of the companies that provide many people with their pensions
True, but apparently pension funds have moved towards holding "productive" land such as forestry, shopping parks, office buildings, industrial estates etc. which although they increase in value at a lower rate than development land, do generally provide a more stable and predictable long-term return (and the land actually generates revenue); rather than undeveloped land held for purposes of speculation.
Land bankers will internally value the land to themselves as "what it might be worth in 10 years" rather than what it is worth now.
Posted 9 years ago # -
"apparently pension funds have moved towards holding "productive" land"
Sounds good - if it's widespread.
"Land bankers will internally value the land to themselves as "what it might be worth in 10 years" "
Yes, and quite often they 'make' that come true - by whatever means.
Or they borrow heavily and then go bust when they can't make things stack up - leaving banks with the 'assets' that they are (understandable) reluctant to re/devalue.
Posted 9 years ago # -
Yep, mature pension funds need stable income generating assets; speculative investments to get capital growth isn't what they are interested in.
And as for the tax rating of land held by companies: to me, it's yet another argument that all corporation tax should be scrapped.
Posted 9 years ago # -
public exhibition: Western Harbour
Forth Ports are revising their proposals for the ongoing development of Western Harbour. The proposals will facilitate the development of new homes, the relocation of Victoria Primary School with associated games area and the creation of Western Harbour Park. The potential for a new medical centre will also be recognised. In order to facilitate the proposals Forth Ports are preparing a Revised Design Framework which will be submitted to the Council in late August 2018.
Forth Ports will be hosting a public exhibition at Ocean Terminal on 25th June 2018 between 2.30pm and 7.30pm (on the first floor between Ocean Bar and Superdry) setting out their proposals and this will provide the public with an opportunity to provide their feedback.
https://leithcentralcc.co.uk/2018/06/14/public-exhibition-western-harbour/
Posted 7 years ago # -
Not all undeveloped land is zero rated, but when it isn't is does seem to attract a ridiculously low value.
As business rates are directly related to a building's Rateable Value. The RV has a statutory relationship to the commercial rent paid on the property.
Like the Small Business Bonus Scheme, these ideas to 'help' business invariably end up with landlords upping their rents because their tenants can now afford more.
This becomes (yet another) financial benefit to already wealthy property owners.
Posted 7 years ago # -
@EdinburghCycleTraining
If only there was a tax that was fair and couldn't be avoided or passed on to tenants.
Posted 7 years ago # -
@IWRATS
Andy Wightman makes a compelling case for it.
Posted 7 years ago # -
Andy Wightman for high steward of Scotland!
Posted 7 years ago #
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