Meeting of the Parliament 21 March 2019
I welcome today’s debate on land reform in Scotland and agree with the cabinet secretary that land is one of Scotland’s most important assets. It is because of that that any consideration of land reform should be scrutinised in depth. We must ensure that any reforms create a more equal society when it comes to land ownership, land purchasing and land use. It will take many years to fully rectify the impact of the feudal system that was abolished by Labour in the early life of the Parliament, but progress is being made.
However, I think that we can be bolder on ownership through new policy such as what was set out this week by the Scottish Land Commission. We should also be much more open to the potential role of land value tax, wider taxation and fiscal policy on land. The redistribution of wealth has always been key to Labour’s political agenda as a method for reducing inequality, tackling poverty and addressing the inherent failures in our society that allow a mass accumulation of money for a select few while others strive daily just to get by.
Land wealth is as much of an issue as monetary wealth. Indeed, with an estimated total value of about £5 trillion, land is the most valuable asset in the UK. When 432 people own 50 per cent of Scotland’s private rural land, it is obvious that our modern land system has an in-built inequality. Therefore, the question of land reform is incredibly important and, if it is done in the right way, it has the potential to radically transform our society for the better by creating a more equal, fairer and even more productive country.
It is also important to raise the issue of land management as outlined by the Scottish Tenant Farmers Association. It has highlighted that two large land agency firms are factoring a significant proportion of the tenanted sector, resulting in tenants being subjected to further inequalities. The association said:
“The experiences of farm tenants in areas of concentrated land ownership within the tenanted sector demonstrate the ability for large landowners to exercise disproportionate influence and power. In contrast, in areas where the large estates have been sold and have a more fragmented ownership structure, a new tenanted sector has developed where there is a better balance of power between landowner and tenant. These areas benefit from improved fairness and equality, have more confident and resilient communities, and demonstrate increased investment and entrepreneurialism.”
Therefore, the question remains: how do we best reform our land system for the benefit of the country as a whole and not simply a select few who make vast sums of money from the land that belongs to us all?
As I said, I welcome the Scottish Land Commission’s report and commend it for its work investigating the issues associated with large-scale ownership and concentrated land ownership. The report’s findings and recommendations are an excellent starting point for looking at ways to address the inadequacies of current land ownership and land management.
It seems strange to me that we have a system whereby there is no obligation to use land in the public interest. I agree with the Scottish Land Commission’s recommendation that that needs to be addressed, and having a public interest test for significant land transfers or acquisitions is a step in the right direction. That ties in with further recommendations for landholdings to engage on and publish management plans, for a new review process where there is evidence of adverse impact and for more robust mechanisms to ensure local democratic influence on and benefit from land use change.
Although I welcome strengthening community right to buy and the recommendation to investigate policy options to encourage a more diverse pattern of private ownership and investment, those changes will take considerable time to come through.
I have spoken about land value tax and general taxation. My view is that we can do something now. We can take a short-term action for the long term to address some of the issues of inequality through a model of land value taxation.
If we want Scotland’s land to work for the many, we should not be timid in our approach, nor should we be put off by those who act in the interest of the few. I hope that the Scottish Land Commission’s report and today’s debate will generate cross-party co-operation to bring about the needed change in land ownership and how land is taxed.
16:09