The Minister for Housing (Esther McVey)
I congratulate the right hon. Member for Tottenham (Mr Lammy) on securing the debate. I know that this matter is of great importance to him and to those associated with Seven Sisters market.
Given the time limit, I may not be able to address every issue that has been raised. I should also make it clear that, for reasons that I will explain in more detail, I cannot comment freely on the regeneration of Wards Corner, and in particular the Secretary of State’s decision to confirm the Wards Corner compulsory purchase order. I know that the right hon. Gentleman, as an experienced Member of the House, will understand that, as there is an application to the Court of Appeal in respect of the High Court ruling upholding the Secretary of State’s decision to confirm the CPO, it is simply not possible for me to discuss the details and the application, as to do so might prejudice those judicial review proceedings. The matter was lodged with the Court of Appeal just before Christmas, and it may be a number of months before it is known whether permission will be given for it to be subject to those further proceedings. I therefore presume that the right hon. Gentleman considered it more important to put his concerns on the record than to hear anything that I might be able to say, and in that context I commend him for making those points. Let me emphasise, however, that the Government take the issue of regeneration and the role of planning extremely seriously. With that in mind, I will explain the background to and the Government’s involvement in the Wards Comer CPO, leading up to the application to the Court of Appeal. I will then place that in the context of the Government’s view on the use of CPO powers.
In September 2016, the London Borough of Haringey made the Wards Corner CPO to enable it to acquire 9 hectares compulsorily to facilitate the comprehensive regeneration of the land known as Wards Corner, for which it had previously granted planning permission for a mixed-use development. As the right hon. Gentleman will know, the council made a robust case to the inquiry that the scheme would act as a catalyst for the local community by bringing an injection of new investment, higher order retail activity, an improved Seven Sisters market, and more and higher quality jobs. The overall investment in terms of construction cost alone was estimated at about £60 million. It is forecast that during the construction phase the development will provide 190 full-time equivalent direct jobs, and that once it has been completed a further 95 direct jobs will deliver £4.8 million per year in gross value added. The scheme will also support further spin-off jobs indirectly.
The CPO was submitted to the Secretary of State for confirmation. Following the receipt of public objections to it, a public local inquiry was arranged in July 2017. The community and the market traders themselves played a full and active part in the CPO process and in the public inquiry. An independent inquiry inspector heard oral submissions on behalf of the market traders’ group and other interested parties. The public inquiry inspector returned his findings and recommendation to the Secretary of State in January 2018, and just over a year ago the Secretary of State issued his decision to confirm the CPO.
That would normally end the Secretary of State’s formal involvement, but as I am pretty sure the right hon. Gentleman is aware, the Secretary of State’s decision was then challenged in the courts. The case was heard by the High Court in October 2019, and judgment was handed down in two days. The claim was dismissed and the judge refused leave to appeal the decision. I cannot interpret on the judgment, but I should say that, overall, the judge was not persuaded that a genuine doubt existed as to the approach adopted by the inspector and therefore the Secretary of State in his decision, on the issues of affordability and the public sector equality duty of concern to the claimants.
That was not the end of the matter, and litigation has continued. Following the High Court judgment, the claimant lodged an application to the Court of Appeal. As yet, there has been no word on whether the application has been accepted and it might be several months before it is known whether the fresh appeal will get permission to be heard at that next tier of the judicial system. Therefore, while the Government welcomed the judgment made in the High Court, the council must again wait to see whether it can take forward the order that will enable the proposals on much-needed regeneration for the area to proceed.
I would now like to set out the wider purpose of the CPO process and its role in enabling and supporting the regeneration of communities such as those in Tottenham. Successive Governments have supported compulsory purchase as an important tool to assemble land into a single ownership to enable the delivery of a wide range of development projects. Used properly, compulsory purchase can enable the development of new communities, essential social infrastructure and commercial facilities, all of which can support economic growth, regeneration and improvements in quality of life. It enables the acquisition of land and property in the public interest without the agreement of the owner, subject to the payment of fair compensation. While land can be acquired by agreement between the parties concerned, such voluntary approaches are unlikely to be suitable for assembling all the land needed for major projects because some owners might not agree to sell their land, or might ask an unreasonably high price. Local authorities and others are empowered to use compulsory purchase powers to deliver a wide range of projects, from large-scale town centre regeneration schemes to the refurbishment of individual empty homes.
To use compulsory purchase powers, an acquiring authority must first make a CPO and submit it to the relevant Minister to decide whether to confirm it. The acquiring authority must notify all qualifying persons, including the relevant owners and occupiers. The CPO is advertised through newspapers and site notices to notify the general public. Remaining objectors to the CPO have the right to object and be heard at a public local inquiry. An inspector’s task is to inquire into the CPO and to elicit all the information needed to enable the Minister to decide whether to confirm the CPO. I am sure the right hon. Gentleman will agree that the CPO process provides ample opportunity for all interested parties to be fully, properly and fairly involved in the process.
The inspector will then prepare and submit their report to the Minister, including their recommendation on whether the CPO should be confirmed. The Minister will then carefully consider the inspector’s report and decide whether to confirm, modify or not confirm the CPO. In deciding whether to confirm the CPO, the Minister is acting in a quasi-judicial capacity. In exercising this function, it is incumbent upon the Minister to act and to been seen to act fairly and even-handedly. A CPO will be confirmed only when the Minister is satisfied that the order contributes to the economic, social and environmental wellbeing of an area. The Minister must also be satisfied that there is a compelling case in the public interest to justify interfering with the human rights of those with an interest in the land affected by the CPO. In making the decision, the Minister must also have due regard to the public sector equality duty under the Equality Act 2010.
Mr Lammy
The Minister is setting out the rules that govern CPOs and am grateful for that. However, would she be worried if a local authority and others were engaging in evictions while the CPO is still being challenged in the courts to get people out of the building, or using false pretences regarding the state of the building to get the building vacated so that they can proceed as they desire?
Esther McVey
The right hon. Gentleman makes a compelling case, but any person aggrieved who wishes to dispute the validity of a CPO or any of its provisions has the right to legally challenge the confirmation of the CPO. Where a legal challenge is successful, the Court has the discretionary power to quash either the decision to confirm the CPO or the whole or any part of the CPO itself. A decision not to confirm a CPO may be challenged by way of a judicial review application made to the High Court and that was the case with the Wards Corner CPO.
I assure colleagues that the Government remain committed to the regeneration and revitalisation of communities most in need. We fully support Haringey Council in its commitment to regeneration throughout the Tottenham area. Major developments are ongoing at Tottenham Hale and around the new Tottenham Hotspur stadium, with others planned. The intention is that the development will provide a catalyst for the regeneration of neighbouring areas such as Seven Sisters, which is the focus of the CPO that we are debating today.
As I said at the start, I must avoid prejudicing the legal process should the application to the Court of Appeal succeed. We must await the outcome from the Court of Appeal. I commend and thank the right hon. Gentleman for securing this debate and speaking so eloquently about the case.
Question put and agreed to.