On Hiring Consultants: Advice from a retiring Consultant

 The Economist

I was delighted when you commissioned me to prepare this report for you after our discussion at the club. As a newly appointed chief executive at a Fortune 500 company, a thrilling yet perilous adventure awaits you. I commend your wisdom in choosing to hire a management consultant to guide you on your way. 

I, naturally, would have been ideally positioned, given my many years of experience serving your company’s principal rival. Alas, the time comes in every man’s life when he must hang up his hat and retire to his home in the Bahamas. As my swan song, I have thrown together, as requested, a few thoughts on how to handle my kind. I hope you find the attached 120-page PowerPoint presentation useful. Below you will find a brief summary.

Be ready for the “bait and switch”: Do not be fooled by the eloquent veterans who will turn up to your office to plead for your business. The work will mostly be done by clever but pimply 20-somethings, armed with two-by-two matrix frameworks recycled from client to client. What they lack in wisdom will be made up for in long hours. You need not feel sorry for them. They are cocooned in a shell of fancy meals, lavish hotels and private drivers—at your expense.

At first you will find them to be of no use at all—detrimental, even—as they harry your management team with endless questions and urgent requests for data. Eventually, they will win you over with their brains and gumption—or be quietly replaced. Meanwhile, those grey-haired senior partners will pop by from time to time. Beware.

Watch out for “land and expand”: We consultants are masters of the clandestine sale. If you hire us for a two-month project, it will assuredly take 12. By the time it ends, our tentacles will have spread. Ask for a new company strategy, blink, and we will be cutting your costs, fixing your it systems and tinkering with your supply chain.

Like many other bosses, you may one day tire of our eye-watering rates and decide to poach the cleverest consultants for yourself. We will happily oblige. The most reliable missionary for the merits of consulting is one of our own. The more senior, the better. Hire them, but do not give them the cheque book.

Question everything: Every self-respecting consultant knows that big recommendations demand big numbers. As a rule, divide everything you see by two. Never trust a benchmark; I made up most of mine. And carefully read those endless notes at the bottom of charts. That is often where the dirtiest secrets are buried. Be doubly dubious of any consulting reports your underlings happen to commission, especially when they recommend a bigger budget for said underling.

Take none of the blame: As a freshly minted chief executive, you are undoubtedly brimming with ideas. Many of them are terrible. Some may prove catastrophic. Among the valuable services offered by management consultants is the human shield. Make sure your board knows it was they who recommended the disastrous new product line or the overpriced acquisition. You always had your doubts, but trusted their illustrious reputations. Equally, your consultants may, from time to time, stumble upon a good idea. You thought of it first.

Experiment with polygamy: Your consultants will do their utmost to woo you into exclusivity. There will be much talk of “long-term partnership”. Yet it is a one-sided monogamy they seek. Fidelity is not in a consultant’s nature. Chances are they are already advising your competitors, with only the thinnest of Chinese walls between teams.

Follow their example and hire their rivals, too. Ideally, sit them in adjacent rooms at your offices. Consultants are fiercely competitive, and nothing will better spur them on to even longer reports than seeing their nemeses wandering the halls of your company. If bored, invite representatives of two warring firms to a meeting and watch them tussle for your favour.

As I look back on my career, I am not too proud to admit that I have occasionally fleeced the odd firm. But I maintain that my profession is a noble one. “Impact”, after all, is our industry’s watchword. (Admittedly, I never was quite clear what it meant, but you cannot deny it sounds lofty.)

One final thought to conclude: there is never a problem too big or small for a consultant. That I can confirm from experience. Your bill, including expenses, is attached. Good luck. 

The Manipur Conflict is about Land and Narcotics

 

Land Jihad - Graves used for land grab

 

The Pakistan Army flies the flag of its motherland, but loves its own land more

 

Pakistan's Brave Judge

Najam Sethi in The Friday Times

Justice Athar Minallah, Chief Justice of the Islamabad High Court, has made history. He has ordered the Capital Development Authority (CDA) to knock down the Pakistan Navy’s Sailing Club House on the edge of the Rawal Dam in Rawalpindi as well as the Monal Restaurant in Islamabad and seize the Margalla Greens Golf Club in the Capital, because these have been built illegally on land belonging to the Margalla Hills National Park. He has thus outlawed the military’s claim to about 8000 acres of such land. Most significantly, the good judge has expressed the view that the Pakistan Navy does not have the authority to undertake a real estate development venture, nor the right to lend its name to any such enterprise.

Naturally, this judgment has warmed the cockles of millions of Pakistani hearts even as it has raised the hackles of powerful people lording it over unaccountable state institutions which have similar illegal stakes in real estate across the country. For starters, the Auditor General of Pakistan has revealed a list of 79 “encroachments” on the land of the Margalla Hills National Park, noting that several government bodies – CDA, Metropolitan Corporation Islamabad, Islamabad Wildlife Management Board, etc. – claim the right to control and manage the area, making the job of adjudication of rights and permissions difficult.

Justice Minallah’s judgment has also ignited questions of how courts have earlier dealt with such matters relating to the rich and powerful as opposed to the poor or feeble. In recent times, two cases have roused public indignation and in both the courts have been inclined to bend over backwards to appease powerful stakeholders. The first is that of Imran Khan’s sprawling multi-billion rupee estate in Bani Gala which was illegally constructed many years ago and brazenly “regularized” by the CDA on orders of Justice Saqib Nisar. In pursuit of this court order, the wretched chairman of the CDA who sent a questionnaire to Imran Khan regarding the property was swiftly dispatched to the nether lands and the journalist who quoted a news report exposing the PM’s shenanigans was served with a “show cause notice” by PEMRA. The second is a high rise luxury apartment construction at 1 Constitution Avenue Islamabad, a list of whose owners reads like a Who’s Who of the high and mighty (Imran Khan was one such). This building again, was “regularized” by the Saqib Nisar court, in sharp contrast to the demolition orders of lesser structures and lay encroachments in Karachi ordered recently by the Chief Justice of Pakistan, Gulzar Ahmed.

This is just the tip of the iceberg. The highway robbery began at the time of partition in 1947 when tens of billions worth urban and rural evacuee property of Hindus and Sikhs was seized by the new lords of the state and distributed freely over the years to their favoured assets and allies regardless of merit or due process. In time, the parliaments of the state began to make laws for cheap acquisition of lands and properties belonging to Pakistanis for the avowed purpose of building public parks, educational institutions or military security and defense installations. These land were then leased out at throwaway rates to favoured institutions and individuals, only for the latter to quietly transform these into high value, exorbitantly profitable commercial ventures in the private sector (housing societies, clubs, marriage halls, golf courses, etc). And that is how “Military Inc.” irresistibly came to be the leading “businessman” in Pakistan, owning airlines, shipping, hotels, banks, insurance, food, fertiliser, cement, housing, you name it. This is why Justice Minallah’s recent judgment is something to write home about. Earlier, he had put a stop to the practice of the civil bureaucracy allotting valuable residential and commercial plots to themselves and judges at throwaway prices to ensure protection against land-grabbing claims and law-bending practices, thus casting the first few stones at the established disorder. Which other court or judge will follow his laudable example and make these singular milestones in Pakistani history?

The Supreme Court is now faced with another public interest challenge. The Supreme Court Bar Association led by lawyer Ahsan Bhoon has filed a petition challenging the lifetime disqualification of PMLN’s Nawaz Sharif and PTI’s Jehangir Tareen from holding public office for not being “sadiq and ameen”. This petition follows revelations of high level judicial impropriety, misconduct and political bias by ex-CJP Saqib Nisar (that name again!) made by ex-CJ Gilgit-Baltistan, Rana Shamim, aimed at knocking out Nawaz Sharif from politics. To prepare the ground further for appropriate judicial review, the ex-Secretary of the PTI, Ahmed Jawad, has now come out of the closet to level accusations of judicial and military manipulation to oust Nawaz Sharif from office and hoist Imran into it. His allegation that Supreme Court judges disqualified Jehangir Tareen in order to “balance” their unfair ouster of Nawaz Sharif is bound to impact the trial and appeals of Mr Sharif in multiple cases and help pave the way for the judiciary to reclaim its lost credibility. It is significant that Justice Athar Minallah is also seized of adjudicating the allegations of ex-CJ GB Rana Shamim, and he will now be hard pressed to include the testimony of Ahmed Jawad in his deliberations.

Is Justice Athar Minallah the man of the moment? The history man?

Aagamee Manushya Party / Human Future Party

 We the members believe: 

1. Human knowledge and understanding are limited. We believe in a sceptical examination of all philosophies, knowledge systems and their methods.
2. Life on planet earth appears on a downward spiral and all attempts should be made to prevent the extinction of the human race and its environment.
3. Achievement of political power is crucial to achieving our objectives and all methods are fair.
4. Land, labour, money, risk… are fictitious concepts and we will aim to search for better fictions to prevent the extinction of the human race and its environment.

 The above principles will be used to guide our approach to any issue.

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Anybody can become a member of the party by affirming to the above four values and paying the requisite joining fee and annual membership charges.

 Anybody can leave the party by submitting their resignation to the appropriate authority in the party with six months notice.

 The party will evolve disciplinary policies after ascertaining that a member has violated its founding values.

 Governance:

 The party will have a Chairperson, a General Secretary and a Treasurer as a leadership troika. The troika will take decisions to achieve the party’s values. Each officer will have a vote each to decide on all operational issues and decisions can be made by a majority vote. Pursuing a consensus should always be the initial approach.

 On issues relating to the values of the party, these maybe amended with a 75% majority of the general membership.

 The leadership troika will have a term of three years. Elections will be held for each post every three years.

 The party may be dissolved with a 80% vote of the general membership.

 

Application form to join Aagamee Manushya Party / Human Future Party

 

 

I:                                                                                        

residing at:

 

 

hereby affirm:

 

1. Human knowledge and understanding are limited. We believe in a sceptical examination of all philosophies, knowledge systems and their methods.
2. Life on planet earth appears on a downward spiral and all attempts should be made to prevent the extinction of the human race and its environment.
3. Achievement of political power is crucial to achieving our objectives and all methods are fair.
4. Land, labour, money, risk… are fictitious concepts and we will aim to search for better fictions to prevent the extinction of the human race and its environment.

 

I wish to join The Aagamee Manushya Party / Human Future Party and promise to work in a diligent manner to propagating its values and beliefs.

 

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Want to tackle inequality? Then first change our land ownership laws

George Monbiot in The Guardian

What is the most neglected issue in British politics? I would say land. Literally and metaphorically, land underlies our lives, but its ownership and control have been captured by a tiny number of people. The results include soaring inequality and exclusion; the massive cost of renting or buying a decent home; the collapse of wildlife and ecosystems; repeated financial crises; and the loss of public space. Yet for 70 years this crucial issue has scarcely featured in political discussions.

Today, I hope, this changes, with the publication of the report to the Labour party – Land for the Many – that I’ve written with six experts in the field. Our aim is to put this neglected issue where it belongs: at the heart of political debate and discussion.

Since 1995, land values in this country have risen by 412%. Land now accounts for an astonishing 51% of the UK’s net worth. Why? In large part because successive governments have used tax exemptions and other advantages to turn the ground beneath our feet into a speculative money machine. A report published this week by Tax Justice UK reveals that, through owning agricultural land, 261 rich families escaped £208m in inheritance tax in 2015-16. Because farmland is used as a tax shelter, farmers are being priced out. In 2011, farmers bought 60% of the land that was on the market; within six years this had fallen to 40%.


Homes are so expensive not because of the price of bricks and mortar, but because land now accounts for 70% of the price


Worse still, when planning permission is granted on agricultural land, its value can rise 250-fold. Though this jackpot was created by society, the owner gets to keep most of it. We pay for this vast inflation in land values through outrageous rents and mortgages. Capital gains tax is lower than income tax, and council tax is proportionately more expensive for the poor than for the rich. As a result of such giveaways, and the amazing opacity of the system, land in the UK has become a magnet for international criminals seeking to launder their money. 
We pay for these distortions every day. Homes have become so expensive not because the price of bricks and mortar has risen, but because the land that underlies them now accounts for 70% of their price. Twenty years ago, the average working family needed to save for three years to afford a deposit. Today, it must save for 19 years. Life is even worse for renters. While housing costs swallow 12% of average household incomes for those with mortgages, renters pay 36%.

Because we hear so little about the underlying issues, we blame the wrong causes for the cost and scarcity of housing: immigration, population growth, the green belt, red tape. In reality, the power of landowners and building companies, their tax and financial advantages and the vast shift in bank lending towards the housing sector have inflated prices so much that even a massive housebuilding programme could not counteract them.

The same forces are responsible for the loss of public space in cities, a right to roam that covers only 10% of the land, the lack of provision for allotments and of opportunities for new farmers, and the wholesale destruction of the living world. Our report aims to confront these structural forces and take back control of the fabric of the nation.

A Labour government should replace council tax with a progressive property tax, payable by owners, not tenants. Empty homes should automatically be taxed at a higher rate. Inheritance tax should be replaced with a lifetime gifts tax levied on the recipient. Capital gains tax on second homes and investment properties should match or exceed the rates of income tax. Business rates should be replaced with a land value tax, based on rental value. A 15% offshore tax should be levied on properties owned through tax havens.

To democratise development and planning, we want to create new public development corporations. Alongside local authorities, they would assemble the land needed for affordable homes and new communities. Builders would have to compete on quality, rather than by amassing land banks. These public corporations would use compulsory purchase to buy land at agricultural prices, rather than having to pay through the nose for the uplift created by planning permission. This could reduce the price of affordable homes in the south-east by nearly 50%.

We propose a community participation agency, to help people, rather than big companies, become the driving force in creating local plans and influencing major infrastructure. To ensure a wide range of voices is heard, we suggest a form of jury service for plan-making. To represent children and the unborn, we would like every local authority to appoint a future generations champion.

Councils should have new duties to create parks, urban green spaces, wildlife refuges and public amenities. We propose a new definition of public space, granting citizens a legal right to use it and overturning the power of private landowners in cities to stifle leisure, cultural events and protest.

We propose much tighter rent and eviction controls, and an ambitious social housebuilding programme. We also want to create new opportunities for people to design and build their own homes, supported by a community right to buy of the kind that Scotland enjoys. Compulsory sale orders should be used to bring vacant and derelict land on to the market, and community groups should have first rights to buy it.

To help stabilise land prices and make homes more affordable, we propose a new body, called the Common Ground Trust. When people can’t afford to buy a home, they can ask the trust to purchase the land that underlies it, while they pay only for the bricks and mortar (about 30% of the cost). They then pay the trust a land rent. Their overall housing costs are reduced, while the trust gradually accumulates a pool of land that acts as a buffer against speculation, and creates common ownership on a large scale.

We call for a right to roam across all uncultivated land and waterways (except gardens and similar limitations). We want to change the Allotments Act, to ensure that no one needs wait for a plot for more than a year. We would like to use part of the Land Registry’s vast surplus to help community land trusts buy rural land for farming, forestry, conservation and rewilding. We would like a new English land commission to decide whether to make major farming and forestry decisions subject to planning permission, to help arrest the environmental crisis. And we want to transform the public’s right to know, by ensuring that all information about land ownership, subsidies and planning is published freely as open data.

These proposals, we hope, will make the UK a more equal, inclusive and generous-spirited nation, characterised not by private enclosure and public squalor, but by private sufficiency and public luxury. Our land should work for the many, not just the few.

Who owns the country? The secretive companies hoarding England's land

Multi-million pound corporations with complex structures have purchased the very ground we walk on – and we are only just beginning to discover the damage it is doing to Britain. By Guy Shrubsole in The Guardian 


Despite owning 15,000 hectares (37,000 acres) of land, managing a property portfolio worth £2.3bn and having control over huge swaths of central Manchester and Liverpool, very few people have heard of a company named Peel Holdings. It owns the Manchester Ship Canal. It built the Trafford Centre shopping complex and, more recently, sold it in the largest single property acquisition in Britain’s history. It was the developer behind the MediaCityUK site in Salford, to which the BBC and ITV have relocated many of their operations in recent years. Airports, fracking, retail – the list of Peel business interests stretches on and on.

Peel Holdings operates behind the scenes, quietly acquiring land and real estate, cutting billion-pound deals and influencing numerous planning decisions. Its investment decisions have had an enormous impact, whether for good or ill, on the places where millions of people live and work.

Peel’s ultimate owner, the billionaire John Whittaker, is notoriously publicity-shy: he lives on the Isle of Man, has never given an interview and helicopters into his company’s offices for board meetings. He built Peel Holdings in the 1970s and 80s by buying up a series of companies whose fortunes had decayed, but which still controlled valuable land. Foremost among these was the Manchester Ship Canal Company, purchased in 1987. The canal turned out to be valuable not simply as a freight route, but also because of the redevelopment potential of the land that flanked it.

Half of England is owned by less than 1% of the population



Peel Holdings tends not to show its hand in public. Like many companies, it prefers its forays into public political debate to be conducted via intermediary bodies and corporate coalitions. In 2008, it emerged that Peel was a dominant force behind a business grouping that had formed to lobby against Manchester’s proposed congestion charge. The charge was aimed at cutting traffic and reducing the toxic car fumes choking the city. But Peel, as owners of the out-of-town Trafford Centre shopping mall, feared that a congestion charge would be bad for business, discouraging shoppers from driving through central Manchester to reach the mall. Peel’s lobbying paid off: voters rejected the charge in the local referendum and the proposal was dropped.

Throughout England, cash-strapped councils are being outgunned by corporate developers pressing to get their way. The situation is exacerbated by a system that has allowed companies like Peel to keep their corporate structures obscure and their landholdings hidden. A 2013 report by Liverpool-based thinktank Ex Urbe found “well in excess of 300 separately registered UK companies owned or controlled” by Peel. Tracing the conglomerate’s structure is an investigator’s nightmare. Try it yourself on the Companies House website: type in “Peel Land and Property Investments PLC”, and then click through to persons with significant control. This gives you the name of its parent company, Peel Investments Holdings Ltd. So far, so good. But then repeat the steps for the parent company, and yet another holding company emerges; then another, and another. It’s like a series of Russian dolls, one nested inside another.

Until recently, it was even harder to get a handle on the land Peel Holdings owns. Sometimes the company has provided a tantalising glimpse: one map it produced in 2015, as part of some marketing spiel around the “northern powerhouse”, showcases 150 sites it owns across the north-west. It confirms the vast spread of Peel’s landed interests – from Liverpool John Lennon airport, through shale gas well pads, to one of the UK’s largest onshore wind farms. But it’s clearly not everything. A more exhaustive, independent list of the company’s landholdings might allow communities to be forewarned of future developments. As Ex Urbe’s report on Peel concludes: “Peel schemes rarely come to light until they are effectively a fait accompli and the conglomerate is confident they will go ahead, irrespective of public opinion.”

While Peel Holdings is unusual for the sheer amount of land it controls, it is also illustrative of corporate landowners everywhere. Corporations looking to develop land have numerous tricks up their sleeve that they can use to evade scrutiny and get their way, from shell company structures to offshore entities. Companies with big enough budgets can often ride roughshod over the planning system, beating cash-strapped councils and volunteer community groups. And companies have for a long time benefited from having their landholdings kept secret, giving them the element of surprise when it comes to lobbying councils over planning decisions and the use of public space. But now, at long last, that is starting to change. If we want to “take back control” of our country, we need to understand how much of it is currently controlled by corporations.

In 2015, the Private Eye journalist Christian Eriksson lodged a freedom of information (FOI) request with the Land Registry, the official record of land ownership in England and Wales. He asked it to release a database detailing the area of land owned by all UK-registered companies and corporate bodies. Eriksson later shared this database with me, and what it revealed was astonishing. Here, laid bare after the dataset had been cleaned up, was a picture of corporate control: companies today own about 2.6m hectares of land, or roughly 18% of England and Wales.

In the unpromising format of an Excel spreadsheet, a compelling picture emerged. Alongside the utilities privatised by Margaret Thatcher and John Major – the water companies, in particular – and the big corporate landowners, were PLCs with multiple shareholders. There were household names, such as Tesco, Tata Steel and the housebuilder Taylor Wimpey, and others more obscure. MRH Minerals, for example, appeared to own 28,000 hectares of land, making it one of the biggest corporate landowners in England and Wales.

Gradually, I pieced together a list of what looked to be the top 50 landowning companies, which together own more than 405,000 hectares of England and Wales. Peel Holdings and many of its subsidiaries, unsurprisingly, feature high on the list. But while the dataset revealed in stark detail the area of land owned by UK-based companies, it did nothing to tell us what they owned, and where.

That would take another two years to emerge. Meanwhile, Eriksson had been busy at work with his Private Eye colleague Richard Brooks and the computer programmer Anna Powell-Smith, delving into another form of corporate landowner – firms based overseas, yet owning land in the UK. Of particular interest were companies based in offshore tax havens, a wholly legal but controversial practice, given the opportunities offshore ownership gives for possible tax avoidance and for concealing the identities of who ultimately controls a company. Further FOI requests to the Land Registry by Eriksson hit the jackpot when he was sent – “accidentally”, the Land Registry would later claim – a huge dataset of overseas and offshore-registered companies that had bought land in England and Wales between 2005 and 2014: some 113,119 hectares of land and property, worth a staggering £170bn.

 

Victoria Harbour building at Salford Quays, owned by Peel Holdings. Photograph: Mike Robinson/Alamy

Private Eye’s work revealed that a large chunk of the country was not only under corporate control, but owned by companies that – in many cases – were almost certainly seeking to avoid paying tax, that most basic contribution to a civilised society. Some potentially had an even darker motive: purchasing property in England or Wales as a means for kleptocratic regimes or corrupt businessmen to launder money, and to get a healthy return on their ill-gotten gains in the process. This was information that clearly ought to be out in the open, with a huge public interest case for doing so. And yet the government had sat on it for years.

The political ramifications of these revelations were profound. They kickstarted a process of opening up information on land ownership that, although far slower and less complete than many would have liked, has nevertheless transformed our understanding of what companies own. In November 2017, the Land Registry released its corporate and commercial dataset, free of charge and open to all. It revealed, for the first time, the 3.5m land titles owned by UK-based corporate bodies – covering both public sector institutions and private firms – with limited companies owning the majority, 2.1m, of these. But there were two important caveats. Although we now had the addresses owned by companies, the dataset omitted to tell us the size of land they owned. Second, the data lacked accurate information on locations, making it hard to map.

Despite this, what can we now say about company-owned land in England and Wales? Quite a lot, it turns out. We know, for example, that the company with the third-highest number of land titles is the mysterious Wallace Estates, a firm with a £200m property portfolio but virtually no public presence, and which is owned ultimately by a secretive Italian count. Wallace Estates makes its money from the controversial ground rents market, whereby it owns thousands of freehold properties and sells on long leases with annual ground rents.

We also now know that Peel Holdings and its numerous subsidiaries owns at least 1,000 parcels of land across England – not just shopping centres and ports in the north-west, but also a hill in Suffolk, farmland along the Medway and an industrial estate in the Cotswolds. Councils, MPs and residents wanting to keep an eye on what developers and property companies are up to in their area now have a powerful new tool at their disposal.

The data is full of odd quirks and details. Who would have guessed, for instance, that the arms manufacturer BAE owns a nightclub in Cardiff, a pub on Blackpool’s promenade and a service station in Pease Pottage, Sussex? It turns out that they are all investments made by BAE’s pension fund; if selling missiles to Saudi Arabia doesn’t prove profitable enough, it appears the company’s strategy is to make a few quid out of tired drivers stopping for a coffee break off the M23.

The data also lets us peer into the property acquisitions of the big supermarkets, which back in the 1990s and early 2000s involved building up huge land banks to construct ever more out-of-town retail parks. Tesco, via a welter of subsidiaries, owns more than 4,500 hectares of land – and although much of this comprises existing stores, a good chunk also appears to be empty plots, apparently earmarked for future development. One analysis by the Guardian in 2014 estimated that the supermarket was hoarding enough land to accommodate 15,000 homes. More recently, however, Tesco’s financial travails have prompted it to sell off some of its sites. Internet shopping and pricier petrol have made giant hypermarkets built miles from where people live look less and less like smart investments. In 2016, Tesco’s beleaguered CEO announced the company was looking to make better use of the land it owned by selling it for housing, and even by building flats on top of its superstores. As for the supermarkets’ internet shopping rival Amazon, whose gigantic “fulfilment centres” resemble the vast US government warehouse at the end of Raiders of the Lost Ark – well, Amazon currently has 16 of those across the UK. And it has grown very quickly: all but one of its property leases have been bought in the past decade.

Companies are increasingly taking over previously public space in cities, too. Recent years have seen a proliferation of Pops – privately owned public spaces – as London, Manchester and other places redevelop and gentrify. You know the sort of thing: expensively landscaped swaths of “public realm”. Aesthetically, they are all very nice, but try to use Pops for some peaceful protest, and you are in for trouble. They are invariably governed by special bylaws and policed by private security, itching to get in your face. I once found this to my cost when staging a tiny, two-person anti-fracking demo outside shale-gas financiers Barclays bank in Canary Wharf. Canary Wharf is partly owned by the Qatari Investment Authority, and – bizarrely – photography is banned. Within a minute of us taking the first selfie on our innocuous protest, security guards had descended en masse, and we spent the next hour running around Canary Wharf trying to evade them.

The Land Registry’s corporate ownership dataset contains millions of entries, and much remains to be uncovered. Some of the information appears trivial at first glance – a company owns a factory here, an office there: so what? But as more people pore over the data, more stories will likely emerge. Future researchers might find intriguing correlations between the locations of England’s thousands of fast-food stores and the health of nearby populations, be able to track gentrification through the displacement of KFC outlets by Nando’s restaurants, and so on.

But to really get under the skin of how companies treat the land they own, and the wider repercussions, we need to zoom in on the housing sector, where debates about companies involved in land banking and profiteering from land sales are crucial to our understanding of the housing crisis.

One particularly controversial aspect of the housing debate that has generated much heat, and little light, in recent years is the debacle over land banking, the practice of hoarding land and holding it back from development until its price increases.

In 2016, the then housing secretary, Sajid Javid, furiously accused large housing developers of land banking and demanded they “release their stranglehold” on land supply. Housebuilders, not used to such impertinence from a Conservative minister, hit back. “As has been proved by various investigations in the past, housebuilders do not land bank,” a spokesperson for the Home Builders Federation told the Telegraph. “In the current market where demand is high, there is absolutely no reason to do so.”

So who is right? This is a complex area, but one that is important to investigate. Can the Land Registry’s corporate ownership data help us get to the bottom of it?

It is common for UK pension funds and insurance companies to buy up land as a long-term strategic investment. Legal & General, for example, owns 1,500 hectares of land that it openly calls a “strategic land portfolio … stretching from Luton to Cardiff”. Its rationale for buying land is simple: “Strategic land holdings are underpinned by their existing use value [such as farming] and give us the opportunity to create further value through planning promotion and infrastructure works over the medium to long term.”

When I looked into where Legal & General’s land was located, I noticed something odd. Nearly all of it lay within green belt areas, where development is restricted. The company appears to have bought it with the aim of lobbying councils to ultimately rip up such restrictions and redesignate the site for development in future.

In the case of pension funds lobbying to rip up the green belt, it’s the planning system that is (rightly) constraining development, not land banking itself. And none of this implicates the usual bogeymen of the housing crisis, the big housebuilding companies. By examining what these major developers own, is it possible to say whether they’re actively engaged in land banking?

There is no doubt that many of the major housebuilding companies own a lot of land. What’s more, housing developers themselves talk about their “current land banks” and publish figures in annual reports listing the number of homes they think they can build using land where they have planning permission. As the housing charity Shelter has found, the top 10 housing developers have land banks with space for more than 400,000 homes – about six years’ supply at current building rates.

Prompted by such statistics, the government ordered a review into build-out rates in 2017, led by Sir Oliver Letwin. Yet when Letwin delivered his draft report, he once again exonerated housebuilders from the charge of land banking. “I cannot find any evidence that the major housebuilders are financial investors of this kind,” he stated, pointing the finger of blame instead at the rate at which new homes could be absorbed into the marketplace.

Part of the problem is that the data on what companies own still isn’t good enough to prove whether or not land banking is occurring. The aforementioned Anna Powell-Smith has tried to map the land owned by housing developers, but has been thwarted by the lack in the Land Registry’s corporate dataset of the necessary information to link data on who owns a site with digital maps of that area. That makes it very hard to assess, for example, whether a piece of land owned by a housebuilder for decades is a prime site accruing in value or a leftover fragment of ground from a past development.

 

Shoppers in the Trafford Centre, a shopping mall until recently owned by Peel Holdings. Photograph: Oli Scarff/AFP/Getty

Second, the scope of Letwin’s review was drawn too narrowly to examine the wider problem of land banking by landowners beyond the major housebuilders. As the housing market analyst Neal Hudson said when it was published, the “review remit ignored the most important and unknown bit of the market: sites and land ownership pre-planning.”

In fact, if Letwin had raised his sights a little higher, he would have seen there is a whole industry of land promoters working with landowners to promote sites, have them earmarked for development in the council’s local plan, and increase their asking price. As investigations by Isabelle Fraser of the Telegraph have revealed: “A group of private companies, largely unknown to the public, have carved out a lucrative niche locating and snapping up land across the UK.”

One such company, Gladman Land, boasts on its website of a 90% success rate at getting sites developed. Few of these firms appear to own much land themselves; rather, they work with other landowners, perhaps signing options agreements or other such deals. Consultants Molior have estimated that between 25% and 45% of sites with planning permission in London are owned by companies that have never built a home.

This gets us to the heart of the housing crisis. Sure, we need housing developers to build more homes. But most of all we need them to build affordable homes. And developers that are forced to pay through the nose to persuade landowners to part with their land end up with less money left over for good-quality, affordable housing. By all means, let’s continue to pressure housebuilders whenever they try to renege on their planning agreements. But at root, we have to find ways to encourage landowners of all kinds – corporate or otherwise – to part with their land at cheaper prices.

Since the first appearance of modern corporations in the Victorian period, companies have expanded to become the owners of nearly a fifth of all land in England and Wales. Much of this land acquisition is uncontested: space for a factory here, an office block there. But some of it has proven highly controversial. Huge retailers and property groups like Tesco and Peel Holdings have eroded town centres and high streets by amassing land for out-of-town superstores, and lobbied to maintain a culture of car dependency. Multinational agribusinesses have exacerbated the industrialisation of our food supply and accelerated the decline of small-scale farmers. Property firms have made tidy profits from the privatisation of formerly public land – which might otherwise have gone into the public purse, had previous governments treated their assets more wisely.

Though the veil of secrecy around company structures and what corporations own is at last lifting, thanks to recent data disclosures by government, there’s still much that needs to be done to make sense of this new information. The Land Registry needs to disclose proper maps of what companies own if we are to get to the bottom of suspect practices like land banking, and give communities a fighting chance in local planning battles.

Legally obliged to maximise profits for their shareholders, and biased towards short-term returns, companies make for poor custodians of land. Nor are corporate landowners capable of solving the housing crisis. Hoarded, developed, polluted, dug up, landfilled: the corporate control of England’s acres has gone far enough.

The shocking waste of cash even Brexiteers won’t condemn

In or out, everyone seems to agree that the poor should keep subsidising the rich with land subsidies.

 

Arable farmland near Leighton in Shropshire. ‘These payments shouldn’t be called farm subsidies: you don’t have to produce any food to receive them.’ Photograph: David Bagnall/Alamy


George Monbiot in The Guardian


Do the Leave campaigners care about the misuse of public money? No. How do I know? Because they have scarcely mentioned the European Union’s great bonfire of banknotes. You know, the item that accounts for roughly 40% of the EU budget, or £42bn a year, almost all of which is wasted. You don’t know? I rest my case.

I’m talking about farm subsidies. If the Brexiters have raised the subject at all, it’s only to assure recipients that these vast sums will continue to be extracted from taxpayers’ pockets if Britain leaves. Some – such as Theresa Villiers and Owen Paterson – have suggested that the great giveaway of public funds could even be increased.

The leaders of the remain campaign are no better: George Osborne, while ripping down essential public services, has warned that if the UK votes out, this outrageous provision of unearned income might dry up. We should stay in Europe, he told the press in Northern Ireland, to ensure that brimming buckets of public money – £3bn a year in the UK – continue to be dispensed.

They would more accurately be described as land subsidies, as they are paid by the hectare. The more land you own or lease, the more public money you are given, so the richest people in Europe clean up. And not just in Europe: Russian oligarchs, Saudi princes and Wall Street bankers have bought up tracts of European farmland, thus qualifying for the vast sums we shovel into their pockets. Why is no word raised against these benefit tourists?

This is arguably the most regressive distribution of public money in modern times. Taxpayers of all stations stock the wine cellars of dukes and hedge fund managers. As much as 80% of the funds are harvested by the richest 25% of recipients. The poorest farmers are excluded: you cannot claim subsidies unless you own or lease at least five hectares. A report by the European court of auditors reveals that the EU has no useful data on farm incomes, and therefore no knowledge of whether farm subsidies serve any social purpose.

This racket is perhaps the strongest of all arguments for leaving the European Union, but the Brexiters’ silence resounds. Among the 13 Conservative MPs who signed an open letter last week undertaking not to cut subsidies for owning or leasing land if Britain leaves the union was Iain Duncan Smith. His wife’s family’s estate, on which he lives, receives £150,000 a year of your money, handed to them by the EU.

Remember what Duncan Smith did to the poor while he was work and pensions secretary? He presided over a system that drove many to food banks. I struggle to imagine less deserving beneficiaries of public charity than Iain Duncan Smith and family.

Hold on – I’ve just thought of one. Paul Dacre, editor-in-chief of the Daily Mail – which rails ceaselessly against other misuses of EU funds, real or imagined – has extracted £460,000 in European subsidies since 2011. How? By owning a shooting estate in Scotland and a tract of land in Sussex. I doubt Dacre knows much more about farming than the average reader of his newspaper, but you don’t have to be a farmer to receive this money; the rules say only that you must have “eligible land at your disposal”.

Whenever you see someone lamenting the “something for nothing culture” in the press, or attacking “bureaucrats, lobbyists and other jackals that scavenge for taxpayers’ money”, you could place a hefty bet that either they or people close to them are stuffing their pockets with EU funds.

There’s another reason for calling these payments land subsidies: you don’t have to produce any food to receive them. Your land just has to look agricultural, which means bare. Among the “ineligible features” listed in Westminster’s version of the European rules are ponds, wide hedges, regenerating woodland, reedbeds, thriving salt marsh and trees sufficient to form a canopy. The common agricultural policy is a €55bn incentive to destroy wildlife habitats and cause floods downstream.

All the good things the EU has done for nature are more than counteracted by this bureaucratic idiocy. Millions of hectares of wildlife habitat in the EU are threatened by this rule; clearance has taken place already across vast areas. Why do we hear so little about it?

I spent part of this spring in Romania, in the midst of hundreds of thousands of hectares of wood pasture (below): a mosaic of flowering meadows, marshes and trees. I have seldom seen such a profusion of life anywhere on earth. I watched golden orioles, hoopoes, honey buzzards, red-backed and great grey shrikes, lesser spotted eagles, black storks, yellow wagtails, roe deer, wild boar and bears. Cuckoos were so common they flew around in flocks. All nine species of European woodpecker live in one small valley where I stayed; so do bee eaters, goshawks, corncrakes, quails, nightjars, tortoises, tree frogs, pine martens, wildcats, lynx and wolves.

 Photograph: George Monbiot

All this is now on the brink. Across Romania, farmers are beginning to realise that they can make money simply by cleansing the land. In eastern Transylvania I saw the heartbreaking results (below): the mass felling of trees and destruction of wildlife, not for any productive purpose, but just to meet the European rules. It’s the same kind of vandalism, driven by diktat and blindly enforced by bureaucrats, that the Romanians suffered under their former despot, Nicolae Ceausescu. The European subsidies rules are responsible for one of the world’s great unfolding disasters, which ranks only a little way behind the fires in Indonesia and thecollapse of coral reefs.

Photograph: George Monbiot

This dog that hasn’t barked exposes the real agenda of the leading Brexiters. They denounce the transfer of public money from rich to poor; they are intensely relaxed about the transfer of public money from poor to rich. It also challenges those who wish to remain.

I will vote in on Thursday, as I don’t want to surrender this country to the unmolested control of people prepared to rip up every variety of public spending and public protection except those that serve their own class. But if we are to live in Remainia, we should insist on sweeping change. Daylight robbery and mass destruction: the EU is supposed to prevent them, not deliver them.

Bolivia Gives Legal Rights To The Earth

Kirsten Cowart


Bolivia has become the first country in the world to actually give nature legal rights in a huge effort to put a halt to not only climate change but the exploitation of our world, and in turn improve the quality of life for the people of Bolivia.

Our Mother Earth looks to Bolivia as they spearhead new economic and social models based on the protection and preservation for nature.

This idea had been developed by grass root social groups that presented their ideas to politicians and were accepted as one. In doing so, the Law of Mother Earth in Bolivia recognizes the rights of all living beings, whether they be plant or animal. This law gives our world equal status to human beings.

When this law is fully approved, this legislation will then provide the Earth with the rights to life and regeneration; liberation from genetic modification and biodiversity; naturally balanced systems, pure water and clean air; complete restoration from the effects of its human activity; and freedom from the continual contamination on all fronts.



The prioritising of this legislation based on broader principles of looking towards living in harmony side by side with the Earth and moving towards the collective good of all. At the core of this legislation is a full understanding that the Earth is sacred, which comes from the indigenous people called Andean, viewing the world as ‘Pachamama’ which translates to Mother Earth a living being.

Back in December 2010 the initial act had already outlined the rights of the earth as a dynamic and “indivisible community of all living systems and living organisms, interrelated, interdependent and complementary, which share a common destiny.”

With the Law of Mother Earth Bolivia’s government would then be legally bound to ensure the prioritising of not only the natural world’s policies and making sure that they are promoting sustainability and controlling industry, but making sure they have the wellbeing of its citizens and the world are at their heart.

The economy of Bolivia will be looking to operate within the limits of nature as they push towards a renewable green food stability and energy efficient technologies. Helping to prevent the drastic climate changes already taking place, ensuring that the future generations have brighter lives and a more hopeful future.

The Bolivian government is also requesting a call to arms with other rich countries to work together in adopting the recognition of the effects of climate change due to their high carbon emissions. According to an Oxfam report in 2009, Bolivia is particularly susceptible to the impacts of climate change with increasing drought, flooding and melting glaciers.

On the stage international change, the Bolivian government will have a duty to help promote the upkeep of the rights of Earth, while becoming advocates of not only peace but the elimination of all nuclear, chemical and biological weapons.

Following the change to the Bolivian constitution back in 2009, the law will play a large part of overhauling the legal system. It helps represent a strong shift away from the universally adopted western development model to a much greener holistic vision, based on the concept of Vivir Bien meaning ‘to live well’.

The proposal for the new law brightly states:


“Living Well means adopting forms of consumption, behaviour and conduct that are not degrading to nature. It requires an ethical and spiritual relationship with life. Living Well proposes the complete fulfilment of life and collective happiness.”

An umbrella group for five different Bolivian social movements called the Unity Pact helps prepare the draft of the new law. The represent and speak for over 3 million people of the countries 36 different indigenous groups, the majority of them are small scale farmers who still call their ancestral lands home. The bill helps to protect not only their livelihoods but the diverse cultures that feel the immense impacts of the large industries.

One of the leaders of the social movement Confederación Sindical Única de Trabajadores Campesinos de Bolivia Undarico Pinto, states that “It will make the industry more transparent. It will allow people to regulate industry at national, regional and local levels,” helping to signify a large shift away from the exploitation of nature.

The draft laws that refers to the mineral resources of the world as “blessings” and goes further and states that Mother Earth, “is sacred, fertile and the source of life that feeds and cares for all living beings in her womb. She is in permanent balance, harmony and communication with the cosmos.”

Bolivia will also establish a Ministry of Earth to promote their new rights and make sure that they are all complied with. yet the economy of Bolivia is at this moment solely dependent of the exports of natural resources, earning almost a third of its foreign currency which averages around £300m a year from multiple mining companies. Bolivia is looking to create a new balance and obligations against the demands of that industry.

Bolivia Rain forest



Within the next few months, the full law is expected to pass and it is very unlikely to face opposition due to the ruling party, The Movement Towards Socialism, has been able to hold a considerable majority in their parliament. President Evo Morales, its leader, voiced a commitment to what they were creating at the World People’s Conference on Climate change that was held in Bolivia back in April 2010.



The Law of Mother Earth includes the following:

The right to maintain the integrity of life and natural processes.

The right to not have cellular structure modified or genetically altered.

The right to continue vital cycles and processes free from human alteration.

The right to pure water.

The right to clean air.

The right to balance, to be at equilibrium.

The right to be free of toxic and radioactive pollution.

The right to not be affected by mega-infrastructure and development projects that affect the balance of ecosystems and the local inhabitant communities

This law pushes the world “harmony and peace” with “the elimination of all nuclear, chemical, and biological weapons.”

Britain - The Mafia State

George Monbiot in Outlook India

Be reasonable in response to the unreasonable: this is what voters in the Labour election are told. Accommodate, moderate, triangulate, for the alternative is to isolate yourself from reality. You might be inclined to agree. If so, please take a look at the reality to which you must submit.

To an extent unknown since before the First World War, economic relations in this country are becoming set in stone. It's not just that the very rich no longer fall while the very poor no longer rise. It's that the system itself is protected from risk. Through bail-outs, quantitative easing and delays in interest rate rises, speculative investment has been so well cushioned that, as Larry Elliott puts it, financial markets are "one of the last bastions of socialism left on earth."

Public services, infrastructure, the very fabric of the nation: these too are being converted into risk-free investments. Social cleansing is transforming inner London into an exclusive economic zone for property speculation. From a dozen directions, government policy converges on this objective. The benefits cap and the bedroom tax drive the poor out of their homes. The forced sale of high-value council houses creates a new asset pool. An uncapped and scarcely regulated private rental market turns these assets into gold. The freeze on council tax banding since 1991, the lifting of the inheritance tax threshold and £14 billion a year in breaks for private landlords all help to guarantee stupendous returns.

And for those who wish simply to sit on their assets, the government can help here too, by ensuring that there are no penalties for leaving buildings empty. As a result, great tracts of housing are removed from occupation. Agricultural land has proved an even better punt for City money: with the help of capital gains, inheritance and income tax exemptions, as well as farm subsidies, its price has quadrupled in 12 years.

Property in this country is a haven for the proceeds of international crime. The head of the National Crime Agency, Donald Toon, notes that "the London property market has been skewed by laundered money. Prices are being artificially driven up by overseas criminals who want to sequester their assets here in the UK."

It's hardly surprising, given the degree of oversight. Private Eye has produced a map of British land owned by companies registered in offshore tax havens. The holdings amount to 1.2 million acres, including much of our prime real estate. Among those it names as beneficiaries are a cast of Russian oligarchs, oil sheikhs, British aristocrats and newspaper proprietors. These are the people for whom government policy works, and the less regulated the system that enriches them, the happier they are.

The speculative property market is just one current in the great flow of cash that sluices through Britain while scarcely touching the sides. The financial sector exploits an astonishing political privilege: the City of London is the only jurisdiction in the UK not fully subject to the authority of parliament. In fact, the relationship seems to work the other way. Behind the Speaker's chair in the House of Commons sits the Remembrancer, whose job is to ensure that the interests of the City of London are recognised by the elected members. (A campaign to rescind this privilege — Don't Forget the Remembrancer — will be launched very soon). The City has one foot in the water: it is a semi-offshore state, a bit like the UK's Crown dependencies and overseas territories, tax havens legitimised by the Privy Council. Britain's financial secrecy undermines the tax base while providing a conduit into the legal economy for gangsters, kleptocrats and drug barons.

Even the more orthodox financial institutions deploy a long succession of scandalous practices: pension mis-selling, endowment mortgage fraud, the payment protection insurance con, Libor rigging. A former minister in the last government, Lord Green, ran HSBC while it engaged in money laundering for drugs gangs, systematic tax evasion and the provision of services to Saudi and Bangladeshi banks linked to the financing of terrorists. Sometimes the UK looks to me like an ever-so-civilised mafia state.

At next month's Conservative party conference, corporate executives will pay £2,500 to sit with a minister. Doubtless, because we are assured that there is no link between funding and policy, they will spend the day discussing the weather and the films they have seen. If we noticed such arrangements overseas, we might be inclined to regard them as corruption. But that can't be the case here, not least because the invitation explains that "fees associated with business day & dinner are considered a commercial transaction and therefore do not constitute a political donation."

The government also insists that there is no link between political donations and seats in the House of Lords. But a study by researchers at Oxford University found that the probability of so many major donors arriving there by chance is 1.36 x 10-38: roughly "equivalent to entering the National Lottery and winning the jackpot 5 times in a row". Why does the Lords remain unreformed? Because it permits plutocratic power to override democracy. Both rich and poor are kept in their place.

Governed either by or on behalf of the people who fleece us, we cannot be surprised to discover that all public services are being re-engineered for the benefit of private capital. Nor should we be surprised when governments help to negotiate, without public consent, treaties such as TTIP and CETA (the Comprehensive Economic and Trade Agreement), which undermine the sovereignty of both parliament and the law. Aesop's observation that "we hang the petty thieves and appoint the great ones to public office" remains true in spirit, though hanging has been replaced by community payback.

Wherever you sniff in British public life, something stinks: I could fill this newspaper with examples. But, while every pore oozes corruption, our task, we are told, is merely to trim the nails of the body politic.

To fail to confront this system is to collaborate with it. Who on the left would wish to stand on the sidelines as this carve-up continues? Who would vote for anything but sweeping change?

Robert Vadra - Son in law or Son in lawless?

Shoba De in The Times of India

Oh dear! The year 2015 has not started well for Robert Vadra — once known as the nation’s son-in-law. The income tax department wants a few critical answers about certain land deals. And understandably, Mr Vadra is not amused. In fact, he is said to be rather cross. The poor guy was made to believe he belonged to a breed known as “Super Indians” which is above and beyond scrutiny . They are not to be asked any questions, nor does anybody expect any answers. It’s been this way for decades. And when a young chap gets used to some very special privileges, such as skipping security checks at airports and so on, he naturally gets annoyed when pesky IT officers want to get into his company affairs and conduct the sort of probes ordinary, law-abiding, tax-paying citizens are subjected to.

Nobody has obviously informed Mr Vadra that things have changed in India. There is a new regime in place, in case he hasn’t noticed. New netas are calling the shots in Delhi. His mother-in-law is no longer the all-powerful mataji of old. Her cronies have been cut down to size and old loyalists are looking for fresh pastures. Zamana badal gaya hai. He should ask his sweet brother-in-law-that is, if Rahul baba himself has woken up and discovered there is no chair to sit on.

Some people may call it a witch hunt and say the poor ‘damaad’ is being unfairly targeted. Or that he is being made to pay the price for being Sonia Gandhi’s son-in-law. Even if that is true, there is just one question to ask: are there gross irregularities in his land dealings or not? If he has been unfairly singled out for such scrutiny and his nostrils are clean, then, no worries! Even his most vocal critics will take back their harsh words. But if, as several investigators are claiming, there have been blatant and gross violations, then, sorry bro … it’s payback time. This is the downside of being famousnotorious. When the going is good, everything in life is tickety boo. But when the chips are down, the wheel comes full circle. The very people who once bowed, scraped and grovelled at your feet bring out the knives and dance over your grave. This is how it always goes.

It is not as if India is collectively gloating over Robert Vadra’s fall from grace. It is not just about Mr Vadra and his alleged unaccounted assets. There are other promoters and land owners who have made an even bigger killing. What most citizens are reacting to, has a different narrative. What got everybody’s goat is that Robert Vadra did not hold any official position. Nobody knows what exactly he did for a living. But everybody is aware that he was treated like a VVIP, minus any duties and responsibilities. It was this open flouting of rules that did him in. Had he been more discreet and conducted his business with more caution, had he not been as in your face, perhaps he would have received a slightly more sympathetic public reaction to his current situation.

Now what? India would like to see a logical end to these fresh investigations. People expect Robert Vadra to be treated like any other citizen. If the charges against him are established in a court of law, then he must bear the consequences like anybody else. Skylight Hospitality allegedly made Rs 50 crore in just one transaction. High-profile builders had apparently rushed to offer Vadra hefty loans. Not a single question was raised for years. When a reporter dared to ask Vadra about his business dealings, his reaction was priceless: “Are you serious … are you serious?” he asked, his expression giving away the whole story. Mr Vadra was aghast and incredulous that anybody could have had the temerity to question him.

Let’s hope someone sensible is prepping the son-in-law to face hundreds of even more pointed questions in the near future. For starters, his mother-in-law can give him a crash course in dealing coolly with lesser beings doing their jobs. Once he masters that, without flipping out, he can hire a competent lawyer — he is probably going to need one pretty soon. If Robert Vadra ever goes to jail, thousands of citizens will send up a silent cheer. Not because they are wicked or sadistic. But because they believe the law in India is the same for all!

Breaking The Silence - Land Reform in the UK

George Monbiot in The Guardian

Bring out the violins. The land reform programme announced by the Scottish government is the end of civilised life on earth, if you believe the corporate press. In a country where 432 people own half the private rural land(1), all change is Stalinism. The Telegraph has published a string of dire warnings, insisting, for example, that deer stalking and grouse shooting could come to an end if business rates are introduced for sporting estates(2). Moved to tears yet?

Yes, sporting estates—where the richest people in Britain, or oil sheikhs and oligarchs from elsewhere, shoot grouse and stags—are exempt from business rates: a present from John Major’s government in 1994(3). David Cameron has been just as generous with our money: as he cuts essential services for the poor, he has almost doubled the public subsidy for English grouse moors(4), and frozen the price of shotgun licences(5), at a public cost of £17m a year.

But this is small change. Let’s talk about the real money. The Westminster government claims to champion an entrepreneurial society, of wealth creators and hard-working families, but the real rewards and incentives are for rent. The power and majesty of the state protects the patrimonial class. A looped and windowed democratic cloak barely covers the corrupt old body of the nation. Here peaceful protestors can still be arrested under the 1361 Justices of the Peace Act. Here, the Royal Mines Act 1424 gives the Crown the right to all the gold and silver in Scotland(6). Here the Remembrancer of the City of London sits behind the Speaker’s chair in the House of Commons(7), to protect the entitlements of a Corporation that pre-dates the Norman conquest. This is an essentially feudal nation.

It’s no coincidence that the two most regressive forms of taxation in the UK—council tax banding and the payment of farm subsidies—both favour major owners of property. The capping of council tax bands ensures that the owners of £100 million flats in London pay less than the owners of £200,000 houses in Blackburn(8,9). Farm subsidies, which remain limitless as a result of the Westminster government’s lobbying(10), ensure that every household in Britain hands £245 a year to the richest people in the land(11). The single farm payment system—under which landowners are paid by the hectare—is a reinstatement of a mediaeval levy called feudal aid(12): a tax the vassals had to pay to their lords.

If this is the government of enterprise, not rent, ask yourself why capital gains tax (at 28%) is lower than the top rate of income tax. Ask yourself why principal residences, though their value may rise by millions, are altogether exempt(13). Ask yourself why rural landowners are typically excused capital gains tax, inheritance tax and the first five years of income tax(14). The enterprise society? It’s a con, designed to create an illusion of social mobility.

The Scottish programme for government(15) is the first serious attempt to address the nature of landholding in Britain since David Lloyd George’s budget of 1909. Some of its aims hardly sound radical until you understand the context. For example it will seek to discover who owns the land. Big deal. Yes, in fact, it is. At the moment the owners of only 26% of the land in Scotland have been identified(16).

Walk into any mairie in France or ayuntamiento in Spain and you will be shown the cadastral registers on request, on which all the land and its owners are named. When The Land magazine tried to do the same in Britain(17), it found that there was a full cadastral map available at the local library, which could be photocopied for 70p. But it was made in 1840. Even with expert help, it took the magazine several weeks of fighting official obstruction and obfuscation and cost nearly £1000(18) to find out who owns the 1.4 km2 around its offices in Dorset. It discovered that the old registers had been closed and removed from public view, at the behest of a landed class that wishes to remain as exempt from public scrutiny as it is from taxes. (The landowners are rather more forthcoming when applying for subsidies from the rural payments agency, which possesses a full, though unobtainable, register of their agricultural holdings). What sort of nation is this, in which you cannot discover who owns the ground beneath your feet?

The Scottish government will consider breaking up large land holdings when they impede the prospects of local people(19). It will provide further help to communities to buy the land that surrounds them. Compare its promise of “a fairer, wider and more equitable distribution of land” to the Westminster government’s vision of “greater competitiveness, including by consolidation”(20): which means a continued increase in the size of land holdings. The number of holdings in England is now falling by 2% a year(21), which is possibly the fastest concentration of ownership since the acts of enclosure.

Consider Scotland’s determination to open up the question of property taxes, which might lead to the only system that is fair and comprehensive: land value taxation(22). Compare it to the fleabite of a mansion tax proposed by Ed Miliband, which, though it recoups only a tiny percentage of the unearned income of the richest owners, has so outraged the proprietorial class that some of them (yes Griff Rhys Jones, I’m thinking of you(23)) have threatened to leave the country. Good riddance.

The Scottish government might address the speculative chaos which mangles the countryside while failing to build the houses people need. It might challenge a system in which terrible homes are built at great expense, partly because the price of land has risen from 2% of the cost of a house in the 1930s to 70% today(24). It might take land into public ownership to ensure that new developments are built by and for those who will live there, rather than for the benefit of volume housebuilders. It might prevent mountains from being burnt and overgrazed(25) by a landowning class that cares only about the numbers of deer and grouse it can bag and the bragging rights this earns in London clubs. As Scotland, where feudalism was not legally abolished until 2000(26), becomes a progressive, modern nation, it leaves England stuck in the pre-democratic past.

Scotland is rudely interrupting the constructed silences that stifle political thought in the United Kingdom. This is why the oligarchs who own the media hate everything that is happening there: their interests are being exposed in a way that is currently impossible south of the border.

For centuries, Britain has been a welfare state for patrimonial capital. It’s time we broke it open, and broke the culture of deference that keeps us in our place. Let’s bring the Highland Spring south, and start discussing some dangerous subjects.

References:

1. http://bit.ly/1vi0kuK

2. http://www.telegraph.co.uk/news/uknews/scotland/11262856/Future-bleak-for-grouse-shooting-and-deer-stalking.html

3. http://www.andywightman.com/?p=3975

4. Defra has tried to pass this off as payments for “moorland farmers”, but all owners of grazed or managed moorlands, of which grouse moors are a major component, are eligible. https://www.gov.uk/government/news/cap-boost-for-moorland

5. http://www.theguardian.com/uk-news/2014/apr/22/cameron-blasted-battle-shotgun-licence-fees

6. The Land Reform Review Group, 2014. The Land of Scotland and the Common Good.
http://www.scotland.gov.uk/About/Review/land-reform/events/FinalReport23May2014

7. http://www.monbiot.com/2011/10/31/wealth-destroyers/

8. http://www.theguardian.com/commentisfree/2014/mar/29/why-do-we-pay-more-council-tax-than-knightsbridge-oligarchs

9. This assumes that a house in Blackburn valued at £69,000 in 1991 would cost around £200,000 today. http://www.blackburn.gov.uk/Pages/Council-tax-charges.aspx

10. http://www.monbiot.com/2014/03/03/the-benefits-claimants-the-goverment-loves/

11. Defra, 31st August 2011, by email.

12. http://en.wikipedia.org/wiki/Feudal_aid

13. http://www.theguardian.com/business/2014/sep/22/charge-capital-gains-tax-main-residencies-says-housing-expert

14. http://www.ft.com/cms/s/2/99ae5756-1d89-11df-a893-00144feab49a.html#ixzz3Kexs2dL2

15. http://www.scotland.gov.uk/Publications/2014/11/6336

16. http://www.andywightman.com/?p=3816

17. http://www.thelandmagazine.org.uk/issue/land-issue-14-summer-2013

18. http://www.thelandmagazine.org.uk/issue/land-issue-14-summer-2013

19. http://www.scotland.gov.uk/Publications/2014/11/6336

20. http://archive.defra.gov.uk/foodfarm/policy/capreform/documents/110128-uk-cap-response.pdf

21. Compare the figures, Agriculture in the United Kingdom 2013: http://bit.ly/1vLQSi4
to the figures in the 2011 version: https://www.gov.uk/government/statistics/agriculture-in-the-united-kingdom-2011

22. http://www.theguardian.com/commentisfree/2013/jan/21/i-agree-with-churchill-shirkers-tax

23. http://www.theguardian.com/commentisfree/2014/nov/04/griff-rhys-jones-mansion-tax-soft-option

24. The Land Reform Review Group, 2014. The Land of Scotland and the Common Good. http://www.scotland.gov.uk/About/Review/land-reform/events/FinalReport23May2014

25. http://www.theguardian.com/commentisfree/2014/may/19/vote-yes-rid-scotland-of-feudal-landowners-highlands

26. http://www.scotland.gov.uk/Topics/Justice/law/17975/Abolition