Location Value Covenants

SFR's proposals for collecting annual rental values without the pain,

routing around the roadblocks, avoiding economic seismic events and

of course in a politically achievable way.


A robust policy option: LVCs.

The Systemic Fiscal Reform Group believes that any cure to the economic malaise must include development of an alternative to the private bank mortgage. From an economic perspective, the mortgage has three serious defects :

    1. repayments are linked to interest rates rather than market value

    2. repayments benefit the finance sector rather than those providing the services to the land

    3. mortgages create new money as debt so are inflationary.

We are currently seeking Queens Counsel to investigate if the LVC can avoid changes to the law and statute through the use of rent charges. If so, they can be adopted immediately.


A policy that:

    1. is politically credible and mundane

    2. creates no windfall winners or losers

    3. does not collapse the financial system

We are proposing Location Value Charges (LVC's), a voluntary scheme meeting all these essential requirements, yet as simple to adopt as a regular mortgage.

LVC’s are a politically mundane, non windfall creating, stable financial policy for collecting the economic rent of land for public revenue.

By adopting LVC’s there is no longer a need for the following dependency cultures

    • Collecting taxes on jobs, sales, profits, gifts, transactions, gains, inheritance

    • Means-tested welfare

    • Government debt

    • Central bank

    • State old-age pensions

    • Poor energy supply