I've just had a thought about Land Value Tax (LVT)—it offers governments no incentive to support employment or wealth generation.
When most of the state's income is generated from a percentage tax on employment—as it currently is through people working (income tax, NICs) and thus having money to spend (VAT, stamp duty, vehicle duty, etc.)—that same state has a financial interest in ensuring that as many people as possible are employed, and that wages are rising faster than inflation.
With something like Land Value Tax (most especially if that tax is, as those such as Mark Wadsworth would advocate, the only tax), the state has no such incentive; they can keep on raising the value of the land, and thus the amount of tax that they collect, with almost no disincentive.
If people cannot pay, the state can dock the money from their wages, or fine them. If they still cannot pay, the state can put those people in prison and confiscate their property and sell it on to someone who can pay (right now anyway, until the next rise).
Wealth creation becomes an irrelevance to the government; in fact, the state has almost unlimited tax raising power because everyone has to live somewhere. As such, they can keep on raising the tax and there will be no clamouring about unemployment figures.
Actually, I don't know why NuLabour hasn't done it already...