High Speed Rail (London - West Midlands) Bill (Fourth sitting)

Jonathan Reynolds Excerpts

Thursday 3rd March 2016 Public Bill Committees

[Mr Goodwill]

As we have just heard, clause 48 refers to compulsory acquisition of land for regeneration or relocation. It enables the Secretary of State to promote a compulsory purchase order if he considers that the construction or operation of phase 1 of HS2 gives rise to an opportunity for regeneration or development of that land. The clause further enables the Secretary of State to promote a compulsory purchase order to acquire land to relocate all or part of an undertaking where, as a result of the exercise of powers under the Bill, the former site is no longer reasonably capable of being used for the undertaking. Subsection (4) provides that the normal process relating to compulsory orders is to apply.

The power is included in the Bill because Ministers wish to maximise the potential economic benefits from phase 1 of HS2 to ensure that local areas make the most of the opportunities that the railway will provide and to support relocation of businesses. It is considered that phase 1 of HS2 will give rise to significant opportunities to promote or facilitate regeneration development. However, assembling a coherent and developable site is an essential part of bringing forward such development and that would not be possible without the ability to have recourse to the powers of compulsory purchase.

As we say in information paper C11, we see this as a backstop power. It would normally be for local landowners and local authorities to come together to assemble land to bring forward regeneration. However, that may not be possible in some cases and regeneration opportunities could be lost. Ebbsfleet is a good example because development, although now under way, has been much delayed and such powers could have enabled more effective land assembly earlier.

Of course, all that does not mean that phase 1 of HS2 will be able to take land wherever it wants. All the measure does is enable the Secretary of State to promote a compulsory order when the construction or operation of phase 1 creates regeneration or development opportunities. Such an order would then need to go through the normal process, including a local inquiry, if there were objections.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

I think I get the gist of what the Minister is saying. When a regeneration project, perhaps in Manchester or on another part of the line, is connected to the benefits that HS2 will bring, does he expect the normal process of land accumulation and scheme formation to occur? Is this measure a reserved power should there be a legal problem in assembling the site? “Backstop power” was the phrase he used. Does he envisage that the normal process would apply for regeneration work to occur in a local area?

[Mr Goodwill]

The hon. Gentleman is right. The owners of land close to HS2 stations or areas where HS2 will have an economic benefit will be grasping such opportunities with both hands. The land will have achieved an uplift in value and the opportunities will be fantastic. Problems might include a particular landowner not wanting to co-operate or another acquisition problem. This is not just about land development, but about the relocation of businesses, and I can think of one or two such examples. We need to be sure that we can bring forward viable opportunities for businesses to be relocated, which will protect those particular jobs.

To promote a compulsory purchase order successfully, the Secretary of State would need to demonstrate three things. First, that a private purchase is not possible, so the land should be taken compulsorily. Secondly, that there is a reasonable prospect of the proposed development coming forward—in other words, that there is no obvious reason why planning permission would not be granted if has not been already. Thirdly, that there is a compelling public-interest need for the land. Taking an individual’s land interferes with their fundamental human rights, so it is only right that significant protections should be in place. The power does not change those protections at all. Although it extends beyond the construction period into operation, checks and balances will continue to be in place.

Although local authorities already have the power to make compulsory purchase orders, it does not always happen. The power is there to ensure that development does happen, and we would expect local authorities to take the opportunity to lead development in their areas. However, in certain circumstances local authorities might be unable to do so, either because regeneration opportunities straddle local authority boundaries or because a local authority does not have the specialist resource to undertake the compulsory purchase order process. In such circumstances, if development is not coming forward in a timeframe that maximises the opportunity, the Government will be able to use this power to accelerate the process, following consultation with the relevant local authority.

Of course, there are safeguards to protect landowners. Planning permission for any developments would need to be obtained in the usual way, and the compulsory purchase order would be made only if there was a reasonable prospect of obtaining planning permission and the compulsory acquisition could be justified as being in the public interest.

I turn to the amendments. The purpose of clause 48(1) is to ensure that the development and regeneration opportunities that HS2 presents are maximised in a timely manner. However, it is a backstop power. We expect local authorities or landowners to be able to capitalise on any opportunities. Indeed, that is already happening. For example, Birmingham City Council has already published its plans for the development of the Curzon Street area, and we support it on that. However, in the event that there are issues that impede development, such as effective land packaging, regeneration areas straddling different local authority boundaries and so on, we will have the ability to step in and to help the development progress. Any such developments that require land outside the Bill limits would require the promotion of a compulsory purchase order and, as I have explained, the rules are tightly drawn and must be adhered to.