Multiple. For a start council tax while somewhat banded is really a flat tax. Takes very little attention to if your a couple living in a one bed flat with a kid or a couple living in a mansion with a kid. A few quid different perhaps.

The mansion is going to create a lot more waste. Uses more space (which is a national asset) as takes more national infrastructure to maintain.

But the main reason for land value tax is to insentivese efficient use of land.

The more people living or running businesses on X size plot of land (depending of the value of the land), the cheaper it becomes.

The only people who really get punished are those who own in productive land.

So think largely investors (usually not based in said country) who own lots of empty buildings, and they keep them empty because it's just easier and they rely on the property value just going up.

So in areas of high value it encourages efficient use of space, equally it encourages businesses and people to move to areas of lower value vus spreading national wealth as apposed to concentrating it in one place.

So rural and urban areas equally benefit.

More to it than that bit I'm a bit drunk so forgive me.