12244.78-83

Session 2010 - 12
Internet Publications
Other Bills before Parliament

Lords Amendments to the Localism Bill

78

“(6A)
The Secretary of State must consult a person or body before making

an order under subsection (1)(f) specifying that person or body.”

(9)
In section 420(8) of that Act (orders subject to annulment) after the entry for

section 395 insert “401A(1)(f);”.”
After Clause 206
226
Insert the following new Clause—

“Part 7A

Compensation for compulsory acquisition

Taking account of planning permission when assessing compensation

(1)
The Land Compensation Act 1961 is amended as follows.

(2)
For sections 14 to 16 (assumptions as to planning permission) substitute—

“14
Taking account of actual or prospective planning permission

(1)
This section is about assessing the value of land in accordance with

rule (2) in section 5 for the purpose of assessing compensation in

respect of a compulsory acquisition of an interest in land.

(2)
In consequence of that rule, account may be taken—

(a)
of planning permission, whether for development on the

relevant land or other land, if it is in force at the relevant

valuation date, and

(b)
of the prospect, on the assumptions set out in subsection (5)

but otherwise in the circumstances known to the market at

the relevant valuation date, of planning permission being

granted on or after that date for development, on the

relevant land or other land, other than—

(i)
development for which planning permission is in

force at the relevant valuation date, and

(ii)
appropriate alternative development.

(3)
In addition, it may be assumed—

(a)
that planning permission is in force at the relevant valuation

date for any development that is appropriate alternative

development to which subsection (4)(b)(i) applies, and

(b)
that, in the case of any development that is appropriate

alternative development to which subsection (4)(b)(ii)

applies and subsection (4)(b)(i) does not apply, it is certain

at the relevant valuation date that planning permission for

that development will be granted at the later time at which

at that date it could reasonably have been expected to be

granted.

(4)
For the purposes of this section, development is “appropriate

alternative development” if—

(a)
it is development, on the relevant land alone or on the

relevant land together with other land, other than

development for which planning permission is in force at

the relevant valuation date, and

79

(b)
on the assumptions set out in subsection (5) but otherwise in

the circumstances known to the market at the relevant

valuation date, planning permission for the development

could at that date reasonably have been expected to be

granted on an application decided—

(i)
on that date, or

(ii)
at a time after that date.

(5)
The assumptions referred to in subsections (2)(b) and (4)(b) are—

(a)
that the scheme of development underlying the acquisition

had been cancelled on the launch date,

(b)
that no action has been taken (including acquisition of any

land, and any development or works) by the acquiring

authority wholly or mainly for the purposes of the scheme,

(c)
that there is no prospect of the same scheme, or any other

project to meet the same or substantially the same need,

being carried out in the exercise of a statutory function or by

the exercise of compulsory purchase powers, and

(d)
if the scheme was for use of the relevant land for or in

connection with the construction of a highway (“the scheme

highway”), that no highway will be constructed to meet the

same or substantially the same need as the scheme highway

would have been constructed to meet.

(6)
In subsection (5)(a) “the launch date” means whichever of the

following dates applies—

(a)
if the acquisition is authorised by a compulsory purchase

order, the date of first publication of the notice required

under section 11 of the Acquisition of Land Act 1981 or (as

the case may be) paragraph 2 of Schedule 1 to that Act,

(b)
if the acquisition is authorised by any other order—

(i)
the date of first publication, or

(ii)
the date of service,


of the first notice that, in connection with the acquisition, is

published or served in accordance with any provision of or

made under any Act, or

(c)
if the acquisition is authorised by a special enactment other

than an order, the date of first publication of the first notice

that, in connection with the acquisition, is published in

accordance with any Standing Order of either House of

Parliament relating to private bills;


and in paragraph (a) “compulsory purchase order” has the same

meaning as in the Acquisition of Land Act 1981.

(7)
In subsection (5)(d) references to the construction of a highway

include its alteration or improvement.

(8)
If there is a dispute as to what is to be taken to be the scheme

mentioned in subsection (5) (“the underlying scheme”) then, for the

purposes of this section, the underlying scheme is to be identified

by the Upper Tribunal as a question of fact, subject as follows—

(a)
the underlying scheme is to be taken to be the scheme

provided for by the Act, or other instrument, which

authorises the compulsory acquisition unless it is shown (by

either party) that the underlying scheme is a scheme larger

80

than, but incorporating, the scheme provided for by that

instrument, and

(b)
except by agreement or in special circumstances, the Upper

Tribunal may permit the acquiring authority to advance

evidence of such a larger scheme only if that larger scheme

is one identified in the following read together—

(i)
the instrument which authorises the compulsory

acquisition, and

(ii)
any documents published with it.

(9)
For the purposes of the references to planning permission in

subsections (2)(a) and (b)(i) and (4)(a) and section 15(1)(c), it is

immaterial whether any planning permission was granted—

(a)
unconditionally or subject to conditions, or

(b)
on an ordinary application, on an outline application or by

virtue of a development order,


or is planning permission that, in accordance with any direction or

provision given or made by or under any enactment, is deemed to

have been granted.

15
Planning permission to be assumed for acquiring authority’s

proposals

(1)
In a case where—

(a)
the relevant interest is to be acquired for purposes which

involve the carrying out of proposals of the acquiring

authority for development of the relevant land or part of it,

and

(b)
planning permission for that development is not in force at

the relevant valuation date,


it is to be assumed for the purposes of section 14(2)(a) and (b)(i) and

(4)(a) that planning permission is in force at the relevant valuation

date for the development of the relevant land or that part of it, as

the case may be, in accordance with the proposals of the acquiring

authority.

(2)
For the purposes of subsection (1)(a), no account is to be taken of

any planning permission so granted as not to enure (while the

permission remains in force) for the benefit of the land and of all

persons for the time being interested in the land.”

(3)
For sections 17 and 18 (certification of appropriate alternative development

and appeals against certificates) substitute—

“17
Certificates of appropriate alternative development

(1)
Where an interest in land is proposed to be acquired by an authority

possessing compulsory purchase powers, either of the parties

directly concerned may (subject to subsection (2)) apply to the local

planning authority for a certificate containing whichever of the

following statements is the applicable statement—

(a)
that in the local planning authority’s opinion there is

development that, for the purposes of section 14, is

appropriate alternative development in relation to the

acquisition;

(b)
that in the local planning authority’s opinion there is no

development that, for the purposes of section 14, is

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appropriate alternative development in relation to the

acquisition.

(2)
If—

(a)
the acquiring authority have served a notice to treat in

respect of the interest or an agreement has been made for the

sale of the interest to that authority, and

(b)
a reference has been made to the Upper Tribunal to

determine the amount of the compensation payable in

respect of the interest,


no application for a certificate under this section may be made after

the making of that reference by either of the parties directly

concerned except with the consent in writing of the other party

directly concerned or the permission of the Upper Tribunal.

(3)
An application for a certificate under this section—

(a)
must contain whichever of the following statements is the

applicable statement—

(i)
that in the applicant’s opinion there is development

that, for the purposes of section 14, is appropriate

alternative development in relation to the

acquisition concerned;

(ii)
that in the applicant’s opinion there is no

development that, for the purposes of section 14, is

appropriate alternative development in relation to

the acquisition concerned;

(b)
must, if it contains a statement under paragraph (a)(i),

specify—

(i)
each description of development that in the

applicant’s opinion is, for the purposes of section 14,

appropriate alternative development in relation to

the acquisition, and

(ii)
the applicant’s reasons for holding that opinion; and

(c)
must be accompanied by a statement specifying the date on

which a copy of the application has been or will be served

on the other party directly concerned.

(4)
Where an application is made to the local planning authority for a

certificate under this section in respect of an interest in land, the

local planning authority must not, without the agreement of the

other party directly concerned, issue a certificate to the applicant

before the end of 22 days beginning with the date specified in the

statement under subsection (3)(c).

(5)
If a certificate under this section contains a statement under

subsection (1)(a) it must also—

(a)
identify every description of development (whether

specified in the application or not) that in the local planning

authority’s opinion is, for the purposes of section 14,

appropriate alternative development in relation to the

acquisition concerned, and

(b)
give a general indication—

(i)
of any conditions to which planning permission for

the development could reasonably have been

expected to be subject,

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(ii)
of when the permission could reasonably have been

expected to be granted if it is one that could

reasonably have been expected to be granted only at

a time after the relevant valuation date, and

(iii)
of any pre-condition for granting the permission (for

example, entry into an obligation) that could

reasonably have been expected to have to be met.

(6)
If a certificate under this section contains a statement under

subsection (1)(a)—

(a)
then, for the purposes of section 14, development is

appropriate alternative development in relation to the

acquisition concerned if, and only if, it is of a description

identified in accordance with subsection (5)(a) in the

certificate, and

(b)
the matters indicated in accordance with subsection (5)(b) in

the certificate are to be taken to apply in relation to the

planning permission that under section 14(3) may be

assumed to be in force for that development.

(7)
If a certificate under this section contains a statement under

subsection (1)(b) then, for the purposes of section 14, there is no

development that is appropriate alternative development in

relation to the acquisition concerned.

(8)
References in subsections (5) to (7) to a certificate under this section

include references to the certificate as varied and to any certificate

issued in place of the certificate.

(9)
On issuing to one of the parties directly concerned a certificate

under this section in respect of an interest in land, the local planning

authority must serve a copy of the certificate on the other of those

parties.

(10)
In assessing any compensation payable to any person in respect of

any compulsory acquisition, there must be taken into account any

expenses reasonably incurred by the person in connection with the

issue of a certificate under this section (including expenses incurred

in connection with an appeal under section 18 where any of the

issues are determined in the person’s favour).

(11)
For the purposes of this section and sections 18 to 20, the Broads

Authority is the sole district planning authority for the Broads; and

here “the Broads” has the same meaning as in the Norfolk and

Suffolk Broads Act 1988.

18
Appeal to Upper Tribunal against certificate under section 17

(1)
Where the local planning authority have issued a certificate under

section 17 in respect of an interest in land—

(a)
the person for the time being entitled to that interest, or

(b)
any authority possessing compulsory purchase powers by

whom that interest is proposed to be, or is, acquired,


may appeal to the Upper Tribunal against that certificate.

(2)
On any appeal under this section against a certificate, the Upper

Tribunal—

83

(a)
must consider the matters to which the certificate relates as

if the application for a certificate under section 17 had been

made to the Upper Tribunal in the first place, and

(b)
must—

(i)
confirm the certificate, or

(ii)
vary it, or

(iii)
cancel it and issue a different certificate in its place,


as the Upper Tribunal may consider appropriate.

(3)
Where an application is made for a certificate under section 17, and

at the expiry of the time prescribed by a development order for the

issue of the certificate (or, if an extended period is at any time

agreed upon in writing by the parties and the local planning

authority, at the end of that period) no certificate has been issued by

the local planning authority in accordance with that section, the

preceding provisions of this section apply as if the local planning

authority has issued such a certificate containing a statement under

section 17(1)(b).”

(4)
In section 20 (power to prescribe matters relevant to Part 3) omit—

(a)
in the opening words—

(i)
the words “and appeals under section eighteen of this Act”,

and

(ii)
the word “respectively”,

(b)
paragraph (b) (manner of and time for giving notice of appeal), and

(c)
paragraph (d) (which refers to provisions of section 17 not re-

enacted in the section 17 substituted by this Act).

(5)
Omit section 21 (proceedings for challenging validity of decision on appeal

under section 18).

(6)
In section 22 (interpretation of Part 3)—

(a)
in subsection (1) (meaning of “the parties directly concerned”) for

“authority by whom it is proposed to be acquired” substitute

“acquiring authority”, and

(b)
in subsection (2) (interpretation of sections 17 and 18) for “and

eighteen” substitute “to nineteen”.

(7)
In each of paragraph 11 of Schedule 27 to the Local Government, Planning

and Land Act 1980 and paragraph 8 of Schedule 9 to the Housing Act 1988

(modifications of section 17(2) of the 1961 Act)—

(a)
for “authority proposing to acquire it” substitute “acquiring

authority”,

(b)
for “in respect thereof,” substitute “in respect of the interest”, and

(c)
for “sale thereof” substitute “sale of the interest”.

(8)
The amendments made in the Land Compensation Act 1961 by this section

apply to the Crown to the extent set out in section 33 of that Act (Act applies

in relation to acquisition by government department, including any

Minister of the Crown, that is an authority possessing compulsory

purchase powers as it applies to other authorities possessing those

powers).”