Britains business leaders are demonstrably the modern Bourbons, forgetting nothing and learning nothing. They permanently complain about the manifest iniquities of business rates, but completely fail to grasp the obvious alternative despite it being regularly set out and available for more than a hundred years (Retailers warn budget will cause unnecessary loss of jobs and shops, 27 October).

Very simply one taxes land, not property. When one reads of property prices rising it is not that bricks and mortar have increased in value but the land. Why? Because they stopped making it aeons ago and its supply is limited. Also, the value of a site is largely dependent on the planning permission it holds, ie the decision of the public authority. The value of my house in Leeds is double what it would be if one applied general inflation rather than land value inflation. Why should I have this potential windfall?

If a business increases its profitability it is penalised by an increase in its business rate, whereas taxing land encourages its profitable use as its valuation is on its maximum permitted use. Furthermore, taxing property encourages huge enterprises and many public utilities to hold land banks for future use because they pay nothing in rates. Taxing land values discourages such unprofitable holdings and encourages their use. Spreading the tax base reduces the rate of tax charged.

The practicalities of valuing land are relatively straightforward, even with transitional arrangements during a changeover. The switch lacks only the political will to introduce it. It became Liberal party policy in 1893 and Lloyd George put it into his radical 1909 budget, only to see it defeated in the Lords. It is high time the Confederation of British Industry, Chambers of Commerce and other organisations for business stopped mere complaining and put all their weight behind this much overdue change.Michael MeadowcroftLeeds

In the rush (including from the opposition) to redress the apparent iniquity represented by business rates, I havent seen any suggestions for making up the consequent shortfall in income for already cash-strapped local authorities. Can anyone enlighten me?Mike WakeWortley, Sheffield

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The answer to business rates? A tax on land - The Guardian