Mark Wadsworth

This is a spare 'blog in case my main 'blog at markwadsworth.blogspot.com isn't working

Car Park Fun

I had occasion to walk past the car park at my local Tube station recently, and observed the following:

It is 40 paces x 30 paces big = 1,200 sq. yards.
It’s well laid out, there are five rows of ten cars = 24 sq yards per car (this is about the bare minimum you need, because at least half the space is used for the access bits).
Charge per day = £4.50.
£4.50 x 5 working days per week x (say) 51 working weeks = £1,147.50
£1,147.50 divided by 24 sq yards = £48/sq yard/year.
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The house we rent at the other end of the High Street is £22,500 a year including Council Tax and it’s a 500 sq yard plot = £45/sq yard/year.
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I’ve uploaded my spreadsheet as a Google Doc which assumes we replace all existing taxes with LVT. The first step was to divide required receipts by the number of square acres of developed land in the UK (about 2.4 million) which gives us £31/sq yard/year on average.

Then, to reflect variations in land values round the country, I made the rate in each local authority area proportional the average recent selling price of semi-detached houses in each area. This worked out at £47/square yard/year for my local authority area (which just scrapes into the top decile. For comparison, Blaenau Gwent is at the bottom at a princely £12/sq yard/year).
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UPDATE, on the way home I paced out the plot of the café-with-offices-above and back garden which I frequent, that’s 500 sq yards as well, and the VOA website tells me it has a rateable value of £29,500, i.e. the Business Rates are about £12,000 a year, which would double under full-on-LVT (in place of Employer’s NIC, VAT and corporation tax), which very conveniently works out at £48/sq yard a year as well.
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Just sayin’, is all.

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