RICS has responded to the consultation paper published alongside the interim report of the Lyons Inquiry into Local Government.  The response concentrates on council tax and business rates.

The response considers the possibility of introducing a local banding system when valuing properties for council tax.  It also considers the workability of land value taxation and the case for regular revaluations if council tax is to be retained.

The consultation paper goes on to deal with business rates and our response looks at the question of re-localisation and consequences for individual authority revenues due to their widely differing tax bases, predictability for businesses, and the wider impacts upon local economic prospects should rates be increased in a particular authority.  Another point raised is that there are potential difficulties that large businesses would face if they had to engage with local authorities across the entire country.

Our response also looks at the calculation and administration of both council tax and business rates and considers the overall complexity of both systems.