High Speed 2 Compensation

Huw Merriman Excerpts

Thursday 18th January 2024 Commons Chamber

[The Minister of State, Department for Transport (Huw Merriman)]

I commend my hon. Friend the Member for Stafford (Theo Clarke) for securing this important debate and I acknowledge all contributions from right hon. and hon. Members. I will come to them in the course of my response.

As the House will be aware, the Government laid a written ministerial statement this morning announcing the lifting of safeguarding directions along the former HS2 route between the west midlands and Crewe. By lifting safeguarding, the Government are providing certainty to people along the former route of phase 2a and making development easier, as HS2 Ltd will no longer object to proposed development in the area to which the safeguarding direction had applied.

To be clear, however, the lifting of safeguarding does not in any way trigger the start of a sell-off of property already acquired by the Secretary of State. No land owned by the Secretary of State will be sold off until we are ready. Safeguarding applies to land owned privately. The imposition of safeguarding on phase 2a had hitherto protected HS2 from conflicting development from any private landowner.

Safeguarding has now been lifted from phase 2a, with one notable exception: the continued safeguarding of land close to the village of Handsacre, north of Lichfield in Staffordshire. That junction, which I know is dear to my hon. Friend the Member for Stafford, and indeed to the constituency MP, my hon. Friend the Member for Lichfield (Michael Fabricant), is now an even more critical part of the HS2 infrastructure. It will allow HS2 trains to join the west coast main line through a connection to the existing rail network. I can confirm that the Government remain committed to delivering the Handsacre connection, as we are committed to delivering HS2 phase 1.

From London to the midlands, 140 miles of new railway is being built by thousands of engineers and construction workers at 350 active construction sites. At Euston, we are working with our development partner, Lendlease, to model an ambitious redeveloped Euston quarter and deliver thousands of homes and offices that will provide the financing for HS2 trains into central London. Today’s important announcement is further evidence that we are listening to businesses and residents along the former phase 2a route, and we will continue to do so.

Let me give the further information that my right hon. Friend the Member for South Staffordshire (Sir Gavin Williamson) and my hon. Friend the Member for Lichfield requested. We will amend the safeguarding on the remainder of the phase 2 route of HS2—from Crewe to Manchester and from the west midlands to Leeds—by the summer, to allow for any safeguarding needed for Northern Powerhouse Rail. To respond to the point made by my right hon. Friend, we will shortly design a programme for the disposing of any property that is no longer needed by HS2, and will set out more details soon.

I can confirm that any land and property that was acquired for HS2 compulsorily or via statutory blight but is no longer required will be sold, subject to the Crichel Down rules. Those rules, as my hon. Friend the Member for Lichfield set out, require Government Departments, under certain circumstances, to offer back surplus land and property for sale to the former owner, or their successors, at the current market value. I therefore assure my hon. Friend that we are ensuring that property is offered back at a fair price to original owners with first refusal.

[Andrew Bridgen]

The Minister says that the properties acquired by HS2 that are no longer required will be sold at the current market price, but does he accept that, as I have explained to the House, HS2 did not pay a fair market price at the time of the acquisition of those assets?

[Huw Merriman]

I am due to meet the hon. Member. He said that I had declined to meet him after two requests; actually, I had a meeting in his diary yesterday, but according to his office he was unable to make that meeting. We have set another date for 31 January. I will talk to the hon. Member about the matters he raises; the Department and the HS2 team have looked at them before and do not agree with the conclusions he has mentioned, but we will discuss those matters when we meet on the 31st.

As has been set out by my hon. Friends and other Members who have spoken, property owners who have found themselves obliged to deal with HS2 Ltd and its contractors have had varied and, at times, inconsistent experiences. Those property owners are understandably less interested in what HS2 can or cannot deliver for transport and the wider economy: their focus has instead been on seeking the compensation they are entitled to, and navigating what must at times have seemed like an unequal relationship with HS2 Ltd.

I readily acknowledge how important it is that those owed compensation, such as money for the purchase of their property or expenses or costs associated with such transactions, are paid in as timely a manner as is possible. I have always sought to impress on the company and its agents that it is unacceptable that cases should drag on. That is of no benefit to anyone—certainly not the property owner, and certainly not the taxpayer.

When it comes to paying owners for title to properties that they have, in many cases, sold unwillingly, it is only right that those owners should receive recompense in full and as fast as is practicable. That said, each property transaction is unique, so presents its own set of circumstances. As many in this House will be aware, when negotiating and settling compensation claims, HS2 Ltd follows the principles set out in the compensation code. There are also a number of discretionary schemes that offer further help to those not eligible under the statutory framework—in effect, they go above and beyond that framework.

HS2 Ltd must achieve a careful balance between meeting the needs of the claimant and delivering value for money to the taxpayer. The compensation code requires claimants to provide robust evidence for their claims. It is often when claimants are struggling to provide sufficient suitable evidence for their claims that negotiations become frustrated, leading to delays. I will be frank: the extent to which claimants’ agents provide suitable evidence, or are willing to negotiate from a realistic standpoint, varies considerably—I have found myself in the middle of some discussions of that type in constituents’ homes. It is important to understand that background, as it helps to explain why, in some instances, property owners consider that they are having payments withheld. When late payments do occur, they are never acceptable, but our data shows that they are the exception rather than the rule.

Property cases should be concluded as soon as is practicable, within the constraints imposed by the balance of the property owner’s interests and those of the taxpayer. The evidence shows—I will happily write to every right hon. and hon. Member who has taken part in this debate—that HS2 Ltd is succeeding in closing down claims, despite the considerable complexities that those claims involve. However, I acknowledge that there are a number of impacted parties with whom HS2 Ltd has not yet been able to reach agreement and negotiations have become challenging, and we have heard about many of them this afternoon. As I mentioned, I have got myself involved in many of those cases to move them further along and challenge HS2 as to the position taken.

My hon. Friend the Member for Stafford is a tireless advocate for the cases that have arisen in her constituency, some of which she and I have previously discussed, as she mentioned. She has cited some particular cases during the debate; I will write back to her with my latest understanding of where matters sit regarding her constituents Mr and Mrs Tabernor and Mr Collier. The same applies to other constituent cases named in this debate by my right hon. Friend the Member for South Staffordshire and others.

With regard to the point about intimidation—I say this as someone who chaired the Transport Select Committee—I believe that everyone should be able to give clear, frank, open and transparent evidence without fear or favour. If there is any evidence of intimidation, I will of course look at it and make sure that it is eradicated. I give everyone in the House that assurance. As my hon. Friend the Member for Buckingham (Greg Smith) has demanded, I am determined that HS2 Ltd should continue to up its game in dealing with difficult and disputed cases, such as the ones that have been mentioned today and others that I am aware of.

Let me touch on a few matters raised by other hon. Members we have heard from but I have not mentioned. The hon. Member for Chesham and Amersham (Sarah Green) referenced a number of cases. I am very happy to meet her, as I have previously. She is a tireless advocate on her constituents’ behalf and I will meet her again to discuss some of those cases. I have touched on the points made by the hon. Member for North West Leicestershire (Andrew Bridgen) and look forward to meeting him and going through the points he made in the debate.

My hon. Friend the Member for Crewe and Nantwich (Dr Mullan) has been a tireless advocate of the benefits that HS2 could deliver to his constituency, and it is the one part of the country that I believe needs particular mention. I spent a morning with him and local Cheshire East councillors looking at the potential and at what the team had brought. It will not have escaped his attention that the local government Minister—the Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for North Dorset (Simon Hoare)—has entered the Chamber. The two of us spoke earlier this week about the needs of Crewe, and we also spoke to other colleagues. He has been a tireless champion of the council, with the predicament that it finds itself in, and when I and the local government Minister meet the team from Cheshire East, my hon. Friend is certainly welcome to join us. We have made such points to other colleagues, and we are determined to help and to work together. I know that the local government Minister cares about these matters and will work with us to do so.

I say gently to the hon. Member for Wythenshawe and Sale East (Mike Kane)—he is a fellow football player with me, as well as a good friend—that the Labour position appears to keep changing. Just last week, the Leader of the Opposition went to Manchester to say that HS2 would no longer continue, which was slightly inconsistent with what we heard this afternoon. It may well be the case that many dispute the plan we have in place, but the plan is not to go ahead with HS2 north of Handsacre, and instead to spend that money—the £36 billion—on projects across the country, particularly to benefit all cities across the north and the midlands. That is the plan, but I think we would all like to know what Labour’s plan is. Is it going to deliver HS2? If it is not going to deliver HS2 beyond the midlands, is it going to commit to the £36 billion that this Government are committing to levelling up? I think we would all like that clarity, not least the constituents represented by all those sitting behind me.

[Greg Smith]

Will the Minister give way?

[Huw Merriman]

I cannot because of the time—by the look on your face, Mr Deputy Speaker.

Let me end with three final points. First, I thank my hon. Friend the Member for Stafford and all the other Members present for tirelessly working on behalf of those affected by HS2 and for the manner in which they have engaged with me. I am at their service. Secondly, I welcome and accept my hon. Friend’s kind invitation to visit Stafford. I will do so, and before the spring is out. Thirdly, and in conclusion, I commit to do the best that I can for property owners impacted by HS2, which includes ensuring the timely payment of compensation, the urgency of which has been laid bare in this debate.