Planning and Infrastructure Bill

Debate between Baroness Rock and Baroness Pinnock

Report stage
Monday 3rd November 2025 Lords Chamber

[Baroness Rock (Con)]

My Lords, you will be delighted to hear that we are now in the home stretch as we debate just before midnight. I shall speak to the three amendments standing in my name, which, unsurprisingly, deal with matters connected with agricultural tenancies. I am grateful to the noble Baroness, Lady Grender, and my noble friend Lady Coffey for their support, and for the many sympathetic responses to the amendments I have had from all sides of the House from people who recognise the important role tenant farmers play. I refer to my interests in the register as a tenant farmer and the author of the Rock review into agricultural tenancies.

From time to time, landlords of holdings that are subject to agricultural tenancies may secure planning consent for a change of use from agriculture, either through a planning application considered by a local authority, which may also go to appeal, or as part of a nationally significant infrastructure project. When that occurs, depending on the nature of the agricultural tenancy, the landlord will be able to secure vacant possession of the holding or part of the holding involved, either by statute or by contract. Agricultural tenancies subject to the Agricultural Holdings Act 1986 have a statutory process, set out in Schedule 3 to the Act under what is known as case B, which will allow the landlord to recover possession but paying only a statutory maximum level of compensation, which is just six times the rent being paid by the tenant for the land being removed. That rarely, if ever, comes close to the tenant’s actual commercial loss. For example, if a tenant farmer is paying £65 for an acre of land, compensation for that acre would be just £390. Amendment 253A seeks to redress that by providing a default position, setting out that the compensation will either be a multiple of the rent or the tenant’s actual loss, whichever is the larger.

I take as an example of the problem the case of the tenant arable farmers Rob and Emma Sturdy, who farm on the Fitzwilliam Malton estate in North Yorkshire. The local planning authority rejected a planning application by the solar energy developer Harmony Energy to take away almost half their farm, but that was appealed by Harmony. Before that appeal, Harmony Energy made an offer of compensation that was above the statutory minimum but, as far as Rob and Emma were concerned, below what would have been their actual commercial loss.

On appeal, the refusal of the solar farm by the local planning authority was overturned, but the inspector failed to make it a condition of that consent that the compensation offered by Harmony, and alluded to throughout the entire appeal, should be paid to Rob and Emma. Unfortunately, Harmony Energy has now taken that compensation offer away and reverted to offering only the statutory minimum compensation of six times rent for half the Sturdys’ farm. That is wholly unacceptable.

The case is made doubly worse by the fact that it was called in by the Government and the decision of the inspector was fully supported by the Planning Minister, despite the promise made to tenant farmers by the Prime Minister when, as Leader of the Opposition, he said that solar energy schemes must not be taken forward at the expense of tenant farmers and that tenant farmers needed to know that the soil beneath their feet was secure. Unfortunately, Rob and Emma are now feeling the emptiness of those words. That is why this provision is so ripe for change. Furthermore, in the solar road map that the Government published in June, they said that statutory compensation for tenant farmers must be addressed, so there is no reason why it cannot be addressed for all development that causes dislocation to tenant farmers.

The situation for tenants under farm business tenancies, regulated by the Agricultural Tenancies Act 1995, is arguably worse. There is no statutory fallback position as to compensation when a tenant loses land following a planning application obtained by the landlord for change of use which allows the landlord to use a contractual clause to remove land. Amendment 253 merely seeks to add a legislative fallback position. Again, this will operate to provide tenants with a level of compensation equivalent to their real loss in losing land to a change of use following the granting of planning permission.

Amendment 253B seeks for the compulsory purchase regime to fully recognise the way in which tenant farmers are impacted. Other noble Lords, including the noble Lord, Lord Cameron of Dillington, have spoken expertly on the need for wider reform of the way in which compulsory purchase operates, but this amendment focuses its attention on tenant farmers, who are often left out of discussions and end up with little or indeed no compensation when they see their businesses, homes and livelihoods devastated by a compulsory purchase acquisition.

While the landlord might receive a level of compensation which may or may not be reasonable in the circumstances, we must ensure that tenant farmers are also in receipt of a level of compensation which adequately covers their losses. In the same way that tenant farmers facing loss of land due to change of use being taken forward by their landlords need adequate compensation, the same must be true when the land is removed through compulsory purchase.

I confess I was increasingly dismayed this evening to note that the Minister in early responses on CPOs constantly referred to landowners. Some 64% of England’s land is wholly or partly tenanted, and yet the Minister fails to address the issue of tenant farmers who do not own land but will still be affected by CPOs. I therefore urge noble Lords to support this amendment to level the playing field for tenant farmers.

The Government should, and I believe should with ease, support these amendments, as they sit firmly within their own policy that the compensation payable to a farm tenant should be “adequate and fair” following a change of use to give way to a solar energy scheme as set out in the Government’s own recent solar road map. In already accepting that compensation provisions are not fit for purpose for solar energy schemes, the Government surely must also recognise that they are not acceptable for other types of development where the tenant farmer, through no fault and no decision of their own, loses occupation of land where they pay rent. I beg to move.

[Baroness Pinnock (LD)]

My Lords, my noble friend Lady Grender has cosigned the amendment in the name of the noble Baroness, Lady Rock. Unfortunately, she is not well and so is not here tonight. She has asked me to make it clear that she fully supports the amendments.