Planning and Infrastructure Bill (Eleventh sitting)

Ellie Chowns Excerpts

Committee stage
Tuesday 20th May 2025 Public Bill Committees

[Matthew Pennycook]

It is important to make one point about the Neighbourhood Planning Act 2017, and then to reiterate the purpose and effect of the clause. The temporary possession powers in the Neighbourhood Planning Act 2017 still need to be commenced. Before commencing those provisions, the Government must consult on regulations relating to the reinstatement of land, subject to a period of temporary possession.

The commencement of the 2017 Act temporary possession powers is an important reform, to which the Government are committed. However, scoping of the work required to prepare the necessary consultation and draft regulations is still under consideration. The clause is an important tidying-up measure, although I will reflect on whether we can do more through guidance to ensure that the process is as clear as possible for those participating in it. In certain cases, the 2017 Act will—inadvertently, to be fair to the previous Government—prevent the powers from being used to enable major infrastructure regimes.

We want those infrastructure regimes to continue under the current legal provisions granted to them for the taking of temporary possession of land, so we think it necessary to amend the temporary possession powers introduced through the 2017 Act: to disapply them for the consenting regimes I set out, to ensure that, when commenced, the 2017 provisions operate as intended and that this does not frustrate major infrastructure coming through the other consenting regimes. I do not think I can be clearer than that. The clause is fairly straightforward and simple, but I am more than happy to take away the shadow Minister’s points about guidance.

Question put and agreed to.

Clause 90 accordingly ordered to stand part of the Bill.

Clause 91

Amendments relating to section 14A of the Land Compensation Act 1961

[Ellie Chowns (North Herefordshire) (Green)]

I beg to move amendment 2, in clause 91, page 131, line 17, at end insert—

“(za) after subsection (1) insert—

‘(1A) Subsection (2) also applies if an acquiring authority submits a compulsory purchase order in relation to furthering the purposes of delivering housing targets set out in a local plan.’”

This amendment would provide that, where a compulsory purchase order is applied for to acquire land or property for the purpose of delivering housing targets set out in local plans, the prospect of planning permission being granted can be disregarded when calculating compensation (also known as “hope value”).

[The Chair]

With this it will be convenient to discuss the following:

Amendment 86, clause 91, page 131, line 17, at end insert—

“(za) in subsection (2), at end insert “unless the acquiring authority states that the whole of the land is being acquired for the purpose (or for the main purpose) of provision of sporting or recreational facilities in which case subsection (5) shall not apply.”

This amendment would enable hope value to be disregarded in calculating the compulsory purchase value of land, where it is being purchased for recreational facilities.

Amendment 87, clause 91, page 131, line 18, at end insert—

“(ab) in subsection (5), at end insert “unless the acquiring authority states that the whole of the land is being acquired for the purpose (or for the main purpose) of provision of sporting or recreational facilities in which case this provision shall not apply.”

This amendment is linked to Amendment 86.

Clause stand part.

New clause 108—Repeal of section 14A of the Land Compensation Act 1961—

“In the Land Compensation Act 1961, omit section 14A.”

[Ellie Chowns]

It is a pleasure to serve under your chairship, Ms Jardine. I rise to speak to amendment 2. Before I do, I would like to welcome the tone in which the Minister has presented the clauses in this part of the Bill. I recognise and understand the intention to clarify the CPO process and enable it to work better, and I particularly welcome our discussions on clause 88—the determination to ensure a fairer distribution between tenants and owners, for example.

Amendment 2 is intended to be fully in that spirit. It recognises the reality of our dysfunctional land and housing markets in the UK, that hope value plays a part in that, and that reforming hope value could unlock significant resources for the delivery of social and affordable housing. I understand that the calculation is that reforming hope value could free up £4.5 billion a year, which could enable us to build a third more social rented homes than had previously been intended. That would be very valuable.

Under the Land Compensation Act 1961, land owners can potentially claim the value of planning permissions that have not even been thought of, let alone applied for. I understand that land with planning permission is on average worth 275 times more than land without—really quite an extraordinary step change in land value. Reforms to address the issue are very much needed.

Under the Levelling-up and Regeneration Act 2023, changes were made; the previous Government recognised that there was a problem. The 2023 Act allows hope value to be removed when a development is deemed to be in pursuit of public benefit, particularly affordable housing, health and education. It is a step in the right direction, but still requires the local authority to apply to the Secretary of State for permission on a case-by-case basis. Amendment 2 would simply clarify the situation and specify that when a local authority is compulsorily purchasing land to provide affordable housing, hope value can be disregarded. It is entirely in the spirit of previous reforms to the legislation. It clarifies the situation, and it avoids the potential for councils to be subject to challenge from developers on a case-by-case basis. It does that by clarifying that when the public benefit is being served—something that the Minister has repeatedly referred to—it is clear that hope value can be disregarded, because the public benefit from providing affordable housing is, in those cases, overriding. I look forward to the Minister’s comments.

[Olly Glover (Didcot and Wantage) (LD)]

It is a pleasure to serve under your chairship once again, Ms Jardine. I rise to speak to amendments 86 and 87 on behalf of my hon. Friend the Member for Twickenham (Munira Wilson). In tackling the issue of hope value, the Planning and Infrastructure Bill misses an opportunity when it comes to playing fields. The amendments seek to include recreational facilities such as playing fields by ensuring that when an acquiring authority uses a compulsory purchase order to acquire land for use as a sports or recreational facility, hope value would not be applied, thus making the cost more affordable.

The amendments would enable hard-pressed local authorities to acquire playing fields for their local communities’ use at playing-field value, instead of at an overinflated hope value, to boost additional grassroots sports provision. Such a change would allow sites such as Udney Park playing fields in Teddington, in my hon. Friend’s constituency—they have lain derelict for more than a decade under private ownership—to be acquired for public use. There is a dire need for additional playing space in the area.

The Liberal Democrats believe that everyone should have access to high-quality sports and recreation facilities in their local community. Indeed, Sport England says that those spaces are key to physical and mental health, and to community links. According to a 2023 College of Policing report, such facilities can help to reduce reoffending, particularly among young people. Up and down the country, too many communities lack the necessary land and space to support young people and families, as well as the wider community, to enjoy sport and improve their physical and mental health. I hope the Minister will consider the amendments in the spirit in which they are intended.

--- Later in debate ---

[Ellie Chowns]

I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 91 ordered to stand part of the Bill.

Clause 92

New powers to appoint an inspector

Question proposed, That the clause stand part of the Bill.

[Matthew Pennycook]

Clause 92 amends the process for the confirmation of CPOs made under the New Towns Act 1981. Decisions to confirm CPOs made under the Acquisition of Land Act 1981, such as housing and planning CPOs, can be made by inspectors on the Secretary of State’s behalf, but currently, confirmation decisions on CPOs made under the New Towns Act must be taken by the relevant Secretary of State. Clause 92 introduces a power for confirmation decisions on CPOs made under the New Towns Act to be delegated to inspectors, although the Secretary of State will retain the ability to recover decisions for their determination. This change will ensure the decision-making process for CPOs facilitating new towns is streamlined and consistent with the confirmation of other CPOs.

Clause 92 also amends the decision-making process for directions for the payment of additional compensation under schedule 2A to the Land Compensation Act 1961 where an acquiring authority has not fulfilled the commitments it relied on when it obtained a direction allowing it to acquire the land without hope value. The clause introduces a power for the Secretary of State to appoint inspectors to take decisions on applications for additional compensation. This will ensure that the process for considering applications for additional compensation is more efficient and consistent with the approach set out in clause 91, which allows for the delegation of decisions on CPOs. The clause will make the authorisation process more efficient, resulting in quicker decisions.