High Speed 2 (Compensation)

Jim Cunningham Excerpts

Tuesday 21st October 2014 Commons Chamber

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

I am grateful for the opportunity to raise the issue of compensation for those adversely affected by High Speed 2. I thank colleagues for being here alongside me, as well as those who were unable to attend but have contacted my office. Since its announcement, and in common with others such as my right hon. Friends the Members for Aylesbury (Mr Lidington) and for Buckingham (John Bercow), I have received numerous representations from people affected by HS2. The theme, I am afraid, is a common one: despair at the current compensation arrangements and a feeling of powerlessness from people who think they cannot influence the process.

Since HS2’s announcement, I have consistently pushed for a fair and generous compensation package. Sadly, despite six public consultations and four years of anxiety for my constituents in Chesham and Amersham and for other colleagues’ constituents, the current proposals for compensation remain as inadequate as ever. However, before the Government’s announcement of their response to the latest consultation, I wanted to give the Minister one more chance finally to listen to people and to put things right.

There have been promises from Ministers. The overriding principle of this project ought to be that no one should have to suffer a financial penalty or be trapped in their home because of HS2. That view is shared by many of us, including my hon. Friend the Member for Ruislip, Northwood and Pinner (Mr Hurd), who is currently on paternity leave but who would otherwise have been present. Unfortunately, the reality shows that that is not the case. Some properties have been on the market for years, and people are trapped and unable to move on with their lives.

Notwithstanding those ministerial promises, the compensation schemes to date have been woefully derisory, and people are facing substantial financial loss. The Transport Secretary promised that compensation would be “full and fair” for “those most directly affected”, and the Prime Minister told me personally that compensation schemes would be “generous and fair”. Given that other major infrastructure projects are in the pipeline, it is time for a rethink on compensation. I hope that the Minister will respond positively, with the aim of introducing fairer arrangements.

[Mr Jim Cunningham (Coventry South) (Lab)]

I appreciated the fact that when members of the HS2 Committee visited Coventry and Kenilworth, they allowed me to accompany them and explain the situation to some of my constituents. As for the question of negative equity—I know that the right hon. Lady will agree with me about this—some people in the Coventry area who have invested their life savings will not qualify for any form of compensation.

[Mrs Gillan]

The hon. Gentleman has made a very valid point, and I shall say more about it shortly.

There are problems with the current compensation proposals. They will compensate only about 2% of those who live within 1 km of HS2, or within 250 metres from a tunnel. As the hon. Gentleman has just pointed out, despite widespread evidence of blight, the vast majority of people affected by HS2 will not be compensated fairly, because the Government have consistently linked the scheme to distance from the line and have ignored the wider effects. HS2 Action Alliance has calculated that only about 172,000 people will receive any kind of compensation, although more than a million live within 1 km of HS2 and many are being adversely affected.

--- Later in debate ---

[Mr Goodwill]

My hon. Friend makes a valid point. If we can reach a fair compensation package for phase 1, we will certainly need to bear that in mind as we look at phase 2. I suspect that those affected by phase 2 would expect no less.

[Mr Jim Cunningham]

There are people in Coventry who are not covered by any compensation scheme, and yet they have invested their life savings in their properties. They cannot sell their properties now. What will the Government do about that?

[Mr Goodwill]

That is precisely why we are putting these compensation schemes in place. We also have an exceptional hardship scheme in place for phase 2. To the end of September 2014, we have purchased 32 properties at a cost of £15.1 million.

Following the property compensation consultation in 2013 for the London to west midlands HS2 route, the Government decided to use five criteria to select the most appropriate long-term discretionary property compensation packages for phase 1 of HS2. Those criteria are: fairness; value for money; community cohesion; feasibility, efficiency and comprehensibility; and the functioning of the housing market. Accordingly, the Government announced on 9 April the long-term compensation schemes that would be introduced for phase 1. They included express purchase, which I have already mentioned.

[Mr Goodwill]

Precisely. Fairness is at the heart of our approach—fairness to those who have to move because their properties are being demolished or are so close to the line; and fairness to those who want to stay in their communities and maintain community cohesion.

We announced a voluntary purchase offer that would be available to people up to 120 metres from the railway in rural areas. Eligible owner-occupiers between the safeguarded area and 120 metres will be able to ask the Government to buy their homes at the unblighted market value. The scheme will be opened to applicants by the end of 2014 following further consultation on supplementary cash payment schemes.

[Mr Jim Cunningham]

As I said, we have people in Coventry outside the 120-metre area who have invested their life savings in a property, but cannot sell it. How will they be compensated?

[Mr Goodwill]

I will move on to the measures for those further away, but we understand that many people’s biggest asset is their home. In fact, many people see their home as part of their retirement package.

We announced a “need to sell” scheme to help property owners who have a compelling need to sell their home, but are unable to do so because of our plans to build HS2. There will be no outer boundary to that scheme, which will also be opened to applicants by the end of 2014. It will succeed the current exceptional hardship scheme for phase 1, which will then be closed. When we implement the voluntary purchase and “need to sell” schemes later this year, we will publish detailed guidance about how they will work.

We have also announced rent back, a rule that means that if a property that the Government have purchased under any of our schemes is suitable for letting, the previous owner may, if they wish, be considered for a Crown tenancy. That scheme was introduced on 9 April.

We have consulted separately over the summer on two supplementary cash payment schemes. The first would provide that, for owner-occupiers in the voluntary purchase area, an alternative cash offer of 10% of the unblighted market value of their property, with a cap of £100,000 and a minimum payment of £30,000, would apply.