Levelling-up and Regeneration Bill

Lord Carrington Excerpts

Report stage
Wednesday 13th September 2023 Lords Chamber

Moved by

[Lord Carrington]

246: After Clause 128, insert the following new Clause—
“Compulsory purchase orders: duty of care(1) The Secretary of State must, by regulations made by statutory instrument, publish a duty of care which applies to acquiring authorities involved in compulsory purchase orders, within six months of the day on which this Act is passed.(2) The duty of care must involve, but is not limited to, obligations on the acquirer to—(a) only acquire the land they demonstrate is necessary,(b) mitigate the impact of the scheme on claimants,(c) pay for the land taken at date of entry or vesting, and(d) ensure that all communication with the claimant is conducted in accordance with the Government’s guidance on compulsory purchase orders.”Member's explanatory statement
This amendment will introduce a duty of care that considers the impacts on rural businesses when their land is acquired through compulsory purchase orders.

[Lord Carrington (CB)]

My Lords, I declare my interests in landownership as set out in the register.

Somewhat reluctantly, I am retabling the amendment from Committee stage, despite the very helpful response that I received from the Minister. Amendment 246, which I propose with the support of my noble friend Lord Lytton and the noble Earl, Lord Caithness, involves the Secretary of State establishing a statutory duty of care setting out the obligations of the acquiring authority in a compulsory purchase situation. That would strengthen the obligation of the acquirer to consider, and possibly reduce, the impact of a compulsory purchase proposal on the claimant, their property and their business. The intention is to safeguard owners against the excesses of the acquiring authorities, many of which are large companies or government bodies.

The Minister, in her response, pointed to the guidance that is already in place for acquiring authorities to treat claimants with respect by undertaking early negotiations to identify what measures can be taken to mitigate the proposed schemes’ impact on land- owners. However, although the guidance is there, it really needs strengthening due to the lack of resources at acquiring authority level to understand fully and implement that guidance. A duty of care resulting from a statutory instrument will give a greater level of protection to those under threat of compulsory purchase and ensure that the acquiring authority considers it as a matter of first priority.

I cannot emphasize enough the appalling experience that greets the property owner affected by compulsory purchase. Some lose their whole property, while many others lose only a proportion, but the whole property suffers from the impacts of construction, which may go on for many years or decades, with the owner having to maintain a viable business throughout that time.

The acquirers’ responsibility is to compensate the land or business owner for their loss, but this is nearly always paid after the land has been taken, in some cases many years thereafter. This delay only adds to the loss. Anyone who has been affected by HS2, which includes me, knows exactly what I mean.

Property owners who are affected by compulsory purchase feel that their interests are often ignored by acquirers keen to deliver the scheme together with any environmental mitigation but with little consideration for the person or business that occupies that land. The statutory duty of care to consider and mitigate the impact on landowners and businesses impacted by the scheme, on top of government guidance on compulsory purchase, would rebalance the interests of delivering the scheme and reduce the impact. It would not delay or prevent schemes and could assist them by avoiding legal battles on interpretation of the guidance. It would also ensure that impacts on property owners and businesses are considered as a key part of the scheme, rather than being an afterthought considered only when compensation is due sometime later.

I hope the Minister will accept that this is a constructive amendment, designed to take much of the aggravation out of compulsory purchase while enabling sensible schemes to progress with greater consideration of the interests and livelihood of the owner. I beg to move.

[The Earl of Lytton (CB)]

My Lords, I support the noble Lord, Lord Carrington, and am a signatory to this amendment. I commend him for his succinct explanation. I also have land interests and some professional familiarity with compulsory purchase.

I have very little to add, but I simply say that the use of CPO powers, and the number of bodies exercising them directly or indirectly, is expanding. It risks subsuming the interests of the individual owner from whom rights are being compulsorily wrested. Some acquiring bodies have overriding commercial objectives, possibly only indirectly aimed at the promotion of public best interest, and I think we should be aware of that. Moreover, many of the safeguards built into the processes when they were used by what I will call the traditional acquiring authorities—for instance, government agencies, local government and so on—seem no longer to be entirely honoured in spirit. That is very important, particularly as we have an expanded use of CPO powers.

The amendment is thus a natural, logical and necessary safeguard for owners who are subject to these powers. They would, inter alia, deal with the evils of entry and taking of land without concurrent payment of compensation. That arrangement leaves a claimant on the back foot in negotiations, prejudiced financially and reorganising their affairs. Failure to adhere to the principles behind this amendment suggests a material erosion of the protocols that are familiar to us under the Human Rights Act—for the reasonable enjoyment of a citizen’s property not to be deprived without due process and for the rules-based system. That is why I support this amendment.

--- Later in debate ---

This amendment would add duplication and complexity to the CPO process, which is contrary to the Government’s objectives. I trust I have given the House reassurance that Amendment 246 is unnecessary and that the noble Lord, Lord Carrington, is able to withdraw it.

[Lord Carrington (CB)]

I am delighted to receive that response from the Minister. I thank everybody who has taken part in this debate for the general support that I appear to have received from everybody who has spoken. It all comes down to the guidance and the enforcement of that guidance, and it is particularly welcome to hear that the update is currently under way. I think we will all look forward to seeing how that pans out. I beg leave to withdraw the amendment.

Amendment 246 withdrawn.

--- Later in debate ---

[Lord Anderson of Ipswich (CB)]

My Lords, the Minister said, in introducing the amendments, that they were carefully targeted and specific. With great respect to her, she could scarcely have chosen less appropriate adjectives for the Henry VIII clause that she seeks to introduce through Amendment 247YY. It is astonishingly broad, even by modern standards, as my noble and learned friend Lord Hope said. To give the House a flavour, it allows the Secretary of State to make any provision that they consider “appropriate” about the operation of any relevant enactment connected to the effects of nutrients and water that could affect a habitat’s site. Relevant enactments include all Acts of Parliament, including the future one we are debating today.

I will add a few other points on that clause to those made by my noble and learned friend. The Delegated Powers Committee, under the chairmanship of the noble Lord, Lord McLoughlin, has stated that such broad Henry VIII powers must always be fully justified—all the more so, one might think, when they are introduced at the last moment without any public consultation or parliamentary scrutiny. The committee also said that inadequate justification for such exceptionally wide powers had been given and recommended, in terms, that this clause should not form part of the Bill.

The position has not improved since then. The explainer circulated on Monday had nothing to say about the clause at all, although I and others raised it with Ministers last week. In fairness, the Minister said that she had written to the committee today, but the letter did not appear on its website when I checked 10 minutes ago, and I have no reason to suppose that the committee has changed its mind.

We cannot get into the habit of passing clauses such as this one without the clearest and most compelling reasons for them. This clause may have been conceived as a fail-safe in hastily prepared legislation, but its effect is to abdicate the influence of Parliament altogether over substantial and important areas of policy. Why would we sign up to that? The Minister undertook that these delegated powers would be used sparingly, and I do not doubt her good intentions. However, with respect to her, no such undertaking can have any value when the clause will expire not in this Parliament or the next, but in the Parliament after that, on 31 March 2030. I see every reason to follow the recommendation of the Delegated Powers Committee and to vote against the addition of the amendment.

There is a practical, as well as a constitutional, reason why I propose to vote against the amendment. If those who wish to oppose the main amendment—Amendment 247YYA—are successful, they will also need to exclude this clause because, if we do not, the powers that it grants will be quite broad enough to allow the Government simply to reintroduce the substantive measures by secondary legislation, or indeed to do anything else that they might wish to do in this general area, without Parliament having the power to amend it or, in practice, to block it. As I said, that is true not only of this Government but of the next Government and the one after that.

I was relieved to hear that my noble and learned friend Lord Hope will not press his probing amendment, because, as he said, it is inadequate to meet the problems identified by the Delegated Powers Committee. Like him, I am not content with Amendment 247YY and, if it is put to a Division, I will vote to exclude it.

[Lord Carrington (CB)]

My Lords, I declare my interests in farming as set out in the register. I will add one or two comments to those made by the noble Baronesses, Lady Jones of Whitchurch, Lady Parminter and Lady McIntosh, on the progress made on nutrient neutrality, its effect on the farming community and the wish not to throw the baby out with the bath water.

It appears that the Government are concerned that the speed of the supply of mitigation options is holding up planning consents. Has the Minister considered the possibility of delaying the requirement for developers to have nutrient mitigation in place to a defined date after build, rather than before building commences, as is currently the case? This would ensure that existing processes and tools are kept in place and not wasted, and that those who have invested in mitigation schemes are not left with stranded assets—for example, many local planning authorities have purchased land and farmers have invested heavily in feasibility and planning works. In maintaining the emphasis on requiring developers to fund the measures, the essence is that the polluter must pay.

[Lord Cormack (Con)]

My Lords, briefly, I associate myself with the remarks made in a very fine speech by my noble friend Lord Deben. We entered the other place on the same day, in June 1970—I have been here continuously since, and my noble friend was briefly absent from the other place for a year or so. I think that we both feel exactly the same: a deep sense of shame that the Conservative Party should behave like this. I thought that I had got over feeling ashamed after the two last disastrous Conservative Prime Ministers. I have a great feeling of support for our present Prime Minister, but I am deeply saddened. It must be because he does not have the long parliamentary experience to see how Parliament should be treated by the Executive. This is no way to legislate.

On this extraordinary Bill, I pay genuine tribute to the stamina and energy of my noble friend the Minister. If anyone ever drew a short straw, she drew a whole packet full and got one free. She has behaved impeccably, but she has been landed with something that no Minister should be landed with: a Bill, at its very last stage, being added to in such a way without proper consultation or discussion.

This does not need to part of this Bill. If the Government believe there is a problem over house building and the environment, it can bring in another Bill in the King’s Speech that can have a proper Second Reading in the other place. It will not get scrutiny in the other place; Bills do not get it there these days. It could then go through all the necessary processes and be through before the end of the next parliamentary session.