Neighbourhood Planning Bill

Lord Young of Cookham Excerpts

Committee: 2nd sitting (Hansard): House of Lords
Thursday 2nd February 2017 Grand Committee

Moved by

[Lord Young of Cookham]

19: Clause 6, page 5, line 39, at end insert—
“( ) In section 34 of that Act (guidance)—(a) the existing words become subsection (1), and(b) after that subsection insert—“(2) The Secretary of State must issue guidance for local planning authorities on how their local development documents (taken as a whole) should address housing needs that result from old age or disability.””

Neighbourhood Planning Bill

Lord Young of Cookham Excerpts

Committee: 3rd sitting (Hansard): House of Lords
Monday 6th February 2017 Grand Committee

[Lord Kennedy of Southwark]

I support the amendment in the name of my noble friend Lady Andrews. She ably outlined why the Government should give a sympathetic response to it. I was pleased to hear the noble Viscount, Lord Trenchard, talk about 549 Lordship Lane. I know the property, referred to as the Concrete House. The council has won an award for its work there: it bought it, did a good restoration and now uses it for shared ownership. I support the amendment. I am conscious of the time and I hope that the Minister will also want to respond quickly.

[Lord Young of Cookham (Con)]

My Lords, at this stage of our flight, the co-pilot takes over. After a very smooth passage with my noble friend at the controls, there may well be some turbulence. I am grateful to the noble Baroness for moving this amendment. She chaired English Heritage for four years, so she has a proud record in the conservation world. I applaud the way she is carrying forward that commitment by tabling the amendment to insert a new clause. She is well qualified and well informed on this issue. As she said, listed buildings are an important part of our environment: they create a sense of identity in a locality and support local economies by attracting visitors. As my noble friend Lord Trenchard said, this offers the opportunity to provide housing in some restoration projects. I also commend the intervention from the noble Lord, Lord Beith, and the work done by him in his particular field.

We all support the objectives of the amendment, but there may be alternative routes to the common destination. The noble Baroness has been a CLG Minister herself, so she may feel some empathy for someone who, having listened to a popular and powerful case for a well-argued amendment, picks up the departmental brief which has at the top, “Resist”. I have two points of my own to make. Listening to the debate, I wondered if there had ever been a case where a charitable trust had done exactly what the noble Baroness had suggested—raised all the funds and then presented the local authority with an indemnity—and the local authority had refused to go ahead with a CPO. If there was such an example it would be relevant to the case that is being made.

My other thought was that, having sat patiently through the debate on this Bill, I have noticed a recurrent criticism that we are fettering the discretion of local authorities. We are accused of not trusting them, of passing primary legislation which makes them do things. The amendment does have the words “a planning authority must”. What is the view of the LGA, which is very well represented in the Committee? Does it welcome the discretion of its members being fettered in the way that the amendment seeks to do? Having said that, the noble Baroness was quite right to remind us that local authorities have the ability to compulsorily purchase listed buildings that are in need of repair. It is an important weapon in their armoury to protect our built heritage.

If one looks at the guidance provided by the Government, paragraph 16 of the compulsory purchase guidance notes states that it specifically provides for local authorities to consider requests from community groups—which could include heritage trusts—to use their compulsory purchase powers to acquire community assets that are in danger and, under the guidance, local authorities are required to consider such requests and to provide a formal and reasoned response.

In a sense, the onus is already on the local authorities to explain why—were they presented with the sort of offer that we have just heard—they feel they cannot accept it. It is also the case, as the noble Baroness said, that heritage trusts have access to grant funds and other sources of income to enable them to carry out the preservation of listed buildings and bring them back into use. What this amendment seeks to do is, in effect, to lock in a statutory embrace the heritage trusts on the one hand with the resources and the local authorities with the CPO powers on the other. I am slightly worried that this might undermine the collaborative approach which I think works quite well at the moment. As has already been said, the CPO power exists, but I am not convinced that the relationship between the local authority and the trust would be assisted if the local authority knew that the trust had this sanction behind it to compel it to do something.

On the point made by my noble friend Lord Trenchard, Historic England is working with local authorities and giving them advice and financial and technical support in many cases where listed buildings are falling into disrepair, enabling a satisfactory solution to be arrived at. That collaborative approach is the way forward. A good example, which if it were not 7.56 pm I would share with the Committee, is Hastings Pier which was restored in exactly the way that has been outlined.

The noble Baroness has commented that absentee owners are difficult to deal with or if the owners or reputed owners do not engage with the compulsory purchase process it can proceed without them, and the acquiring authority only has to make a reasonable attempt to find them. That attempt includes information in CPO notices simply displayed on site, as well as being sent to the last known address of the owners—then they can proceed.

So far as the trust is concerned, the cost of compulsory purchase is not always easy to assess. There could be court challenges and it could end up in the High Court. The defence of a legal challenge would fall to the trust and any failure of a trust to meet its responsibility to indemnify the local authority would put the trust’s future in jeopardy and the local authority would be liable for those costs.

In a nutshell, the Government are not convinced that the noble Baroness’s amendment to compel a local authority to proceed with a compulsory purchase would have a significant effect on the use of the CPO legislation. The current process provides a balanced approach, allowing local authorities and heritage trusts to enter into mutually acceptable arrangements. It encourages collaboration between local authorities and heritage trusts, and as I have said, that approach could be jeopardised if an element of compulsion were to be introduced.

I am happy to reflect on the dilemma which the noble Lord, Lord Beith, outlined about local authorities’ reluctance to take things forward. In the meantime, with the greatest respect, I ask the noble Baroness to withdraw her amendment.

[Baroness Andrews]

My Lords, I am very grateful to the Minister. I detect a sympathy beneath his detailed rebuttal. I am also very grateful to Members who supported the amendment. The points the Minister made are worth reading properly and I will go on to do some research in connection with the heritage bodies about the response of local authorities and the effectiveness of the guidance. There is an argument which says that advice and guidance are fine as far as they go, but what we are looking at here is case after case across the country of deep frustration, of failure of capacity and of fairly old resources. I take the point about an element of compulsion, but there comes a point in all forms of policy where something more draconian needs to be considered as part of a conversation about what the alternatives are, otherwise we will never move away from the sort of stasis that we have had over sometimes magnificent buildings but which are a blight and an eyesore when they could be so productive in the community. We will rise to the challenge and see whether we can come back. We may be back before Report with evidence, but in the event, I certainly withdraw the amendment.

Neighbourhood Planning Bill

Lord Young of Cookham Excerpts

Committee: 4th sitting (Hansard): House of Lords
Wednesday 8th February 2017 Grand Committee

[Lord Beecham]

My Lords, I shall speak to Amendments 69 and 75. They are pretty much self-explanatory. The former simply requires that guidance should be provided when there are temporary rights that can be granted at the same time over the same piece of land. Amendment 75 is rather more important because it provides that the section should not come into force until guidance has been published in relation to it. I assume that is the Government’s intention, and I hope they will accept that amendment.

[Lord Young of Cookham (Con)]

My Lords, the co-pilot is back in charge. I thank the noble Lords, Lord Shipley and Lord Beecham, for tabling their amendments to Clause 14. The noble Lord, Lord Shipley, made it clear that his amendment was probing. Before I move on to discuss these and the government amendments to this clause, it may be helpful if I begin with a brief description of Clauses 14 to 26, which introduce the new temporary possession power.

All acquiring authorities may need to enter and use land for a temporary period. For example, they may require land to store materials for a scheme or to provide access to a construction site, as the noble Lord, Lord Shipley, explained. The problem is that, currently, only certain acquiring authorities have temporary possession powers—for example, under special Acts which are needed for very large schemes such as the Crossrail Act 2008. Crucially, compulsory purchase orders cannot authorise temporary possession. There is no good reason for this difference, and it is unfair to those who do not have the powers. Clauses 14 to 26 seek to create a level playing field by giving all acquiring authorities the same power to take temporary possession of land. It may also be in the interests of those on the receiving end of a CPO to have the possibility of being deprived of their land temporarily rather than permanently.

In giving acquiring authorities this power, we shall ensure that those whose land is taken are fairly compensated and that there are appropriate safeguards in place to protect their interests. That is set out in Clause 19. For example, temporary possession will have to be authorised in the same way as compulsory acquisition. Also, in certain circumstances, owners and occupiers will be able to require the acquiring authority to acquire the land permanently instead of occupying it on a temporary basis, if that is what they want.

Government Amendments 66, 67, 70, 71, 74 with Amendments 105 and 106 and amendments to other clauses, which I shall deal with later, remove the requirement for the temporary possession to be linked directly to a scheme for the acquisition of other land either by compulsion or agreement. Decoupling is the word that the professionals have been using. The reason for this change is that there may be situations where an acquiring authority needs to take only temporary possession of land. For example, an acquiring authority may need temporary possession of land for a contractor’s compound when they have been able to buy all the land needed for their scheme by agreement, or they may need access to land temporarily to maintain a highway. That is the impact of some of our amendments.

Government Amendments 105 and 106 are consequential on Amendment 66; they simply remove definitions of terms that are no longer required. Non-government Amendments 65, 68 and 72, which were tabled by the noble Lord, Lord Shipley, also seek to remove the requirement for the temporary possession to be directly linked to a compulsory acquisition scheme. I hope, therefore, that he will agree they are unnecessary in the light of the Government’s amendments.

On Amendment 69, tabled by the noble Lords, Lord Beecham and Lord Kennedy, I agree with the noble Lord that we need to ensure that the interests of leaseholders are adequately protected in introducing this new power. However, I believe that that amendment is not needed, because we have already built in a safeguard which would deliver the same outcome that is requested, but in a more flexible way.

Amendment 69 would restrict the temporary possession power so that it could never be used when a leasehold interest would have less than a year to run after the land was handed back, even if that was the preference of the leaseholder, the freeholder and the acquiring authority. It sounds counterintuitive to prohibit that. The effect of this amendment would be that, if the land was essential to the delivery of the scheme, the acquiring authority would instead be driven to exercising the more draconian power of compulsory acquisition of the land permanently. However, as I have said, we have already built in a safeguard for leaseholders, which I believe will achieve the outcome that noble Lords are seeking. The safeguard is in Clause 17(3), which allows leaseholders to serve a counternotice preventing the acquiring authority taking temporary possession of the land. On receipt of the counternotice, if the land is essential to the delivery of the scheme, the acquiring authority can proceed as if the land were subject to compulsory acquisition and take the land permanently. In these circumstances, the leaseholder would, of course, be compensated for both the value of his lease and losses caused by reason of being disturbed from possession of the land taken. I believe this is a neater solution, which gives leaseholders the flexibility to decide what is right for them.

Amendment 73, tabled by the noble Lord, Lord Shipley, seeks to clarify what will happen when a tenant’s land is subject to compulsory purchase. As government Amendment 103 seeks to do the same thing—although our approach is different—I will speak to both amendments together. Government Amendment 103 provides that the terms and obligations under the tenancy, with the exception of the payment of rent and the length of the tenancy, will be disapplied to the extent that the temporary possession prevents reasonable compliance with them. Any expenditure which a leaseholder incurs as a result of the temporary possession would be claimed back from the acquiring authority. The noble Lord’s amendment, in contrast, provides that all the terms and obligations are unenforceable for the period of temporary possession.

The reason we have disapplied the terms and obligations only to the extent that the temporary possession prevents reasonable compliance with them is that there may be circumstances in which only a small part of land subject to a lease is also subject to temporary possession. In these situations, there may be no easy way in which to separate out the terms that relate to the land subject to temporary possession from terms that relate to the remainder of the land.

The second point of difference is the exclusion of the payment of rent and the length of the tenancy. We have done this because, again, where only a small part of a tenant’s land is required, making these terms unenforceable could result in a tenant having to pay an uncertain portion of the rent for the land not subject to temporary possession. The loss that would be compensated is not the rent payable for the existing lease, but any rent payable for alternative premises, as that is the loss that has been caused. Under the Government’s amendment, responsibility for paying the rent for the land under temporary possession remains with the tenant. However, the tenant will be entitled to claim compensation from the acquiring authority in relation to any expenditure which a leaseholder reasonably incurs as a result of the temporary possession.

The other point of difference with the noble Lord’s amendment is to do with proposed subsections (4) to (6), which make provision with regards to those who have protected tenancies under the Landlord and Tenant Act 1954. Occupiers with such a protected tenancy have a right to apply for the grant of a new tenancy, provided they remain in occupation. However, if their land is subject to temporary possession they will no longer be in occupation and will lose this right. Government Amendment 103 and non-government Amendment 73 both seek to preserve this right to renew the tenancy. However, in doing so, the government amendment imposes a requirement for the tenant to confirm in writing to both the landlord and the acquiring authority that they intend to resume occupation after temporary possession. I think it is clear that both amendments are after the same thing: greater clarity for tenants and landlords as to what happens during the temporary possession period, including the treatment of rent.

Finally, in this group, I will respond to Amendment 75, tabled by the noble Lord, Lord Beecham. The noble Lord made a very valid point, which I entirely agree with, that where the Government intend to provide guidance on the use of a new power, that guidance should be available by the time the provisions come into force. That is, of course, the Government’s intention. The particular element of the temporary possession provisions that the noble Lord has identified is in Clause 15(3)(a), which will allow both temporary possession and compulsory acquisition powers to be obtained concurrently for the same piece of land.

Although this so-called doubling-up of temporary and permanent powers can be authorised, it will not give acquiring authorities carte blanche to double up in all cases. It would not be fair to claimants if there was not a very good reason for an acquiring authority to make an order which included this doubling-up. It would not be wise to anticipate precisely what might be in the guidance at this point, but as I have just said, there would be a high bar to justify doubling-up. The most likely circumstances would be linear transport projects where the final design is not complete by the time compulsory powers are obtained. We know of a handful of orders in the last dozen years where this has been authorised, such as the Docklands Light Railway and the Nottingham tramway.

As for compulsory acquisitions, each case would be considered on its individual merits at a public inquiry before an inspector, and considered by the relevant Secretary of State, before a decision was made whether doubling-up was justified in the public interest.

I hope that I have been able to reassure the noble Lord, Lord Beecham, with a firm undertaking that the Government will be seeking views on the draft guidance and will publish it before these provisions come into force. I apologise to the Committee for a somewhat lengthy oration on these amendments, but there are quite a few of them. When the time comes, I will move government Amendments 66, 67, 70, 71, 74, 103, 105 and 106. In the meantime, I ask the noble Lord to withdraw Amendment 65 and for noble Lords not to press Amendments 68, 69, 72, 73 and 75.

[Lord Shipley]

I am grateful to the Minister for his reply. I draw his attention to two facts. First, the Government have brought 34 amendments for consideration this afternoon, this Bill having passed in the other place. Secondly, some of them were tabled quite late, and after I tabled my amendment. I understand the need for all this to be brought together for Report, so I beg leave to withdraw the amendment.

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Moved by

[Lord Young of Cookham]

66: Clause 14, page 13, line 14, leave out paragraphs (a) and (b) and insert “a person (an “acquiring authority”)—
(a) has a power conferred by an Act to acquire land compulsorily (with or without authorisation from another person), or(b) is or has been, at any time, otherwise authorised to acquire land compulsorily.”

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Moved by

[Lord Young of Cookham]

70: Clause 14, page 13, line 21, leave out “enactment” and insert “Act”

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Moved by

[Lord Young of Cookham]

74: Clause 14, page 13, line 31, leave out subsection (6)

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Moved by

[Lord Young of Cookham]

76: Clause 15, page 13, line 35, leave out “same”

[Lord Young of Cookham]

My Lords, we now move to the second group of amendments on temporary possession. Clause 15 deals with the procedure for authorising temporary possession of land, requiring it to be authorised by the type of authorising instrument that would be required for the permanent acquisition of land—for example, a compulsory purchase order.

Government Amendments 76 to 79 remove redundant wording in Clause 15(2) as a consequence of government Amendment 66 to Clause 14(1). Government Amendments 80 to 82 amend Clause 15(3) to clarify that the same land may be subject to both temporary possession and compulsory acquisition powers concurrently. We debated the need for guidance relating to the clause a moment ago on Amendment 75, tabled by the noble Lord, Lord Beecham, so I shall not repeat what I said about that. Government Amendments 83 to 85 and 87—the last also, happily, endorsed by the noble Lord, Lord Shipley—all remove redundant provisions in the context of the previous amendments. For example, Amendment 87 refers to “relevant land”: this is no longer needed because the concept of relevant land is removed by Amendment 66. I beg to move.

[Lord Shipley]

My Lords, Amendment 86 is in my name, and I want to ask the Minister a question. Clause 15 sets out the procedures for authorising temporary possession. It is not clear from the clause whether it is intended that there be a time limit for the life of a temporary power—for instance, three years for service of a notice post the confirmation of a compulsory purchase order. Do the three-year and five-year standards for compulsory purchase orders in statutory instruments apply, and does the power apply to post-construction maintenance during a defect period?

The Government’s amendments to remove superfluous words are helpful. I am not sure whether Amendment 87, which deletes subsection (7), is right—I am having second thoughts about it. I think it is right, but as the relevant land is the land required for the scheme, it seems appropriate to make it clear that temporary possession can be taken after action to secure the land required permanently. I would be grateful for the Minister’s comment.

[Lord Young of Cookham]

I may need to write to the noble Lord, Lord Shipley, about the specific issue he has raised on Amendment 87 and subsection (7) relating to relevant land. As I said, this is no longer needed, because the concept of relevant land has been removed by Amendment 66, with which we have just dealt. However, I will make some inquiries following his representations.

The noble Lord, Lord Shipley, has proposed in Amendment 86 that Clause 15(6) should be omitted. This is intended to be helpful clarification. It confirms that the authorising instrument—for example, a CPO—does not need to include the dates for any particular period of temporary possession. It would be difficult for an acquiring authority to do that, because it would not know the date of the confirmation at that stage. The cross-reference to Clause 16 points users to the provisions which specify the dates of temporary possession. The Government believe that there is no need for users of this legislation to be deprived of this clarification. He also asked a question about whether CPO powers would expire after a certain period. Again, I will write to him about this when I have made some inquiries. In the meantime, I hope that he will not move his Amendment 86.

Amendment 76 agreed.

Moved by

[Lord Young of Cookham]

77: Clause 15, page 13, line 36, leave out “as is or would be”

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Moved by

[Lord Young of Cookham]

87: Clause 15, page 14, line 18, leave out subsection (7)

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[Lord Shipley]

My Lords, I shall speak to Amendments 89, 91, 92, 93 and 94 in my name. These five amendments relate to Clause 17, which makes provision for a person affected by temporary possession to serve a counternotice to limit the total period which the temporary possession can last to 12 months in the case of a dwelling and six years in any other case. Leaseholders can also serve a counternotice providing that the acquiring authority may not take temporary possession. Having received the counternotice the acquiring authority must decide whether to accept it, withdraw the notice or proceed to take the land permanently.

As drafted, Clause 17 seems unnecessarily complex. The hope is that the Government might be able to simplify it without losing any of its statutory force. Regarding Amendment 89, Clause 17 applies wherever an acquiring authority gives notice of intended entry on to land for a temporary period to a person who is either the freeholder of the land affected or a leasehold owner. The clauses that follow seem to have a different counternotice procedure, depending on whether it is a freeholder or a leaseholder. So in connection with Amendment 89, is there a need to distinguish between leaseholders and freeholders? This amendment and the consequential amendments seek to avoid that and therefore to simplify the clause.

Amendment 91 refers to Clause 17(3), which allows a leaseholder to give the acquiring authority a counternotice to prevent it taking temporary possession of the land. It appears that this right is not available to freeholders, who can serve only a counternotice limiting the period of temporary possession. Surely, this right should be available to freeholders. This amendment therefore seeks to clarify the matter by stating:

“The owner may give the acquiring authority a counter-notice which provides that the authority may not take temporary possession of the owner’s interest”.


We then have consequential Amendments 92, 93 and 94. Clause 17(10) states that nothing in that clause,

“prevents an acquiring authority acquiring land compulsorily after accepting a counter-notice or withdrawing a notice of intended entry”.

My question is: should a permanent acquisition be available for temporary land unless a counternotice has been served requiring a permanent rather than temporary acquisition? Clause 17(8) is relevant in this respect. Amendment 94 would therefore leave out lines 38 to 40 on page 15. The concern is that landowners could potentially face a period of six years of temporary possession with the acquiring authority then deciding to acquire the land permanently. In the interests of fairness, the land should surely have been acquired permanently in the beginning. Scheme promoters should know how they wish to use the land and whether it needs to be permanently acquired from the outset.

[Lord Young of Cookham]

My Lords, I thank the noble Lord, Lord Kennedy, for tabling his Amendment 88. I appreciate that his aim in doing so was to make things clearer, an ambition which I fully support. However, on this occasion I do not think that an amendment is necessary because subsection (7) provides that Clause 16 must be complied with,

“in relation to each subsequent period of temporary possession”.

That makes it clear that acquiring authorities can serve more than one notice. Having said that, this is the sort of thing that could usefully be covered in guidance. We will update our compulsory purchase guidance in light of the reforms in the Bill, and in the light of what the noble Lord has said, I will ask for this matter to be looked at again.

Amendments 89 and 91 to 93 deal with the counternotice provisions in Clause 17. These provisions are an improvement on the current temporary possession regimes, which have no counternotice procedure in them. I thank the noble Lord, Lord Shipley, for tabling his amendments. No one would be keener than I to simplify all this, if it were possible so to do. I doubt whether it would be realistic wholly to redraft this clause between now and Report but I endorse his sense of direction. He is quite right to say that there is a difference between the treatment of leaseholders and that of freeholders. This is because the Government believe that there could be a greater impact on leaseholders than freeholders when their land is subject to temporary possession, as the leaseholder may be left with a useless lease at the end of the temporary possession period—for example, when there is only a short period left to run on the lease. We considered this in debate on Amendment 69.

Clause 17(3) affords leaseholders additional protections in these circumstances by giving them the option to serve a counternotice, as the noble Lord, Lord Shipley, said, providing that an acquiring authority cannot take temporary possession of their land at all. However, no such issues arise for freeholders. The justification for the temporary possession of the land will have been carefully considered on its individual merits at a public local inquiry before an independent inspector and confirmed only where it is in the public interest.

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[Lord Beecham]

I would not say that I was unduly disturbed, but I would be grateful if the Minister would comment on it.

[Lord Young of Cookham]

I am sorry for doing a disservice to the noble Lord.

Amendment 90, tabled by the noble Lords, Lord Beecham and Lord Kennedy, seeks to limit the period of temporary possession of land not occupied by dwellings to three years rather than the six years proposed in Clause 17(2). It is a matter of judgment whether one draws the line at three, six or nine years. The limit of six years is designed to give those affected greater certainty on the total period that non-dwelling land can be subject to temporary possession. Restricting the period to three years, as suggested, would limit the usefulness of this new power, as the lower the upper limit, the more likely it is that an acquiring authority would, on a cautionary basis, decide to take the more draconian and unnecessary route of compulsory, permanent land acquisition instead.

As I said, there needs to be a balance between giving acquiring authorities the power they need to deliver their schemes and ensuring that the interests of those whose land is taken are protected. We consider that an upper limit of six years strikes the right balance. It is an upper limit and, of course, in many cases temporary possession will be for far less time and the issue will not arise. Where possession will need to be for infinitely longer, acquiring authorities might go for compulsory acquisition in the first instance. I assure noble Lords that we can and will keep this under review as the new power begins to take effect. The regulation-making power in Clause 24 will allow the Government to make changes if required. With those assurances and explanations—and with apologies for trying to take a short cut—I ask the noble Lord to withdraw his amendment.

[Lord Kennedy of Southwark]

My Lords, I thank the noble Lord for his response in respect of Amendment 88. He is entirely correct that the intent of our amendment is just to get clarity as we debate the legislation. With compulsory purchase, I am conscious that there is the risk of lawyers getting involved at a later date and arguing about what something does or does not mean—although I know my noble friend is of course a lawyer, and I would not wish to deprive him of any work. I may be reading it incorrectly but Clause 16(7) appears to refer just to the one, single case. All my amendment sought was to add that you can have more than one. I may well be wrong about this, and the Bill may be perfectly correct, but I would not mind if the noble Lord and his officials looked at it once more before we get to Report. It may well be that guidance is all we need, but we are trying to get absolute clarity so that we do not get any problems in the future on this. Other than that, we are in complete agreement on this clause as it stands.

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[Lord Beecham]

My Lords, speaking as a lawyer, although happily not practising, I see no need to amend the term “injury” to “damage”. Legally, injury embraces damage of all kinds. I would not go to extremes to defend the Government on this or any other occasion, but if the Minister felt disinclined to accept the amendment, I would not dissent from his judgment.

[Lord Young of Cookham]

I am grateful for this growing cross-party alliance on how to deal with one of the amendments. I shall deal with as much as I can in writing, but some government amendments are tucked into this group which I need to address.

I thank the noble Lord, Lord Shipley, for tabling his amendments, which, as he said, deal with compensation for temporary possession. Clause 19 provides that claimants will be entitled to compensation for any loss or injury which they sustain as a result of the temporary possession. Where the claimant is operating a trade or business on the land, they will be entitled to compensation for disturbance of that trade or business.

I turn to Amendment 95, for which the noble Lord has explained his reasons. I think this comes down to a difference in approach to drafting. The Government have used the term “loss or injury” instead of “loss or damage”, as the noble Lord has suggested. Both terms have been used previously. In this instance, the Government have opted to follow the precedent of Section 20 of the Compulsory Purchase Act 1965.

The important point is that both formulations have the same meaning. I am reinforced in my view by the recent intervention by the noble Lord, Lord Beecham.

On the second part of this amendment, adding,

“as a result of the temporary possession of the land”,

is unnecessary because subsection (1) makes the same point.

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Moved by

[Lord Young of Cookham]

98: Clause 19, page 16, line 29, leave out “claim” and insert “cause of action”

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Moved by

[Lord Young of Cookham]

101: Clause 19, page 16, line 33, leave out from “section” to end of line 35 and insert “in relation to a particular head of loss or injury carries interest from the day after the last day on which that loss or injury occurs.”

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Moved by

[Lord Young of Cookham]

103: After Clause 23, insert the following new Clause—
“Impact of temporary possession on tenancies etc
(1) Subsection (2) applies where an acquiring authority takes temporary possession under section 14(2) of land subject to a tenancy.(2) A person is not to be treated as being in breach of—(a) any term of the tenancy, or(b) any other obligation associated with the tenancy or the land subject to temporary possession,to the extent that the person cannot reasonably comply with the term or other obligation as a result of the temporary possession.(3) Subsection (2) does not affect terms or obligations about—(a) the length of the tenancy, or(b) the payment of rent.(4) Subsection (5) applies where—(a) an acquiring authority takes temporary possession of land subject to a tenancy to which Part 2 of the Landlord and Tenant Act 1954 (security of tenure for business tenants) applies immediately before the period of temporary possession,(b) the tenancy expires during the period of temporary possession, and(c) prior to the period of temporary possession the tenant notifies in writing both the acquiring authority and the landlord that the tenant intends to resume occupation of the land after the period of temporary possession.(5) For the purposes of Part 2 of the Landlord and Tenant Act 1954 the tenant is to be deemed to continue to occupy the land in accordance with the tenancy mentioned in subsection (4)(b), and any tenancy which succeeds that tenancy, despite the period of temporary possession.(6) But if the tenant notifies in writing both the acquiring authority and the landlord that the tenant no longer intends to resume occupation of the land after the period of temporary possession subsection (5) ceases to apply.(7) In this section, “tenancy” includes a sub-tenancy.”

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[Lord Beecham]

My Lords, I support the amendment in the name of the noble Baroness, Lady Parminter, and speak to Amendment 104A which requires the Secretary of State and Welsh Ministers to make provision for the reinstatement of land at the end of a period of temporary possession. This is not drafted particularly for the benefit of the residents of Aberystwyth or places in the vicinity; it stems from the report of the Delegated Powers and Regulatory Reform Committee which draws attention to a number of issues, only some of which are embodied in this amendment.

In dealing with the issue mentioned in Amendment 104A, the committee regarded it as inappropriate to leave the discussion of whether or not to include provisions about reinstatement in the regulations to the Secretary of State and Welsh Ministers. Hence, it recommended that the clause should be amended to impose the duty referred to in the amendment. However, that was not the end of the committee’s concerns. In particular, it also took issue with Clause 24(2)(a), which it regarded as,

“inappropriately wide and should be redrafted to reflect the narrow policy intention referred to in the DCLG document which explained the power to modify provisions”.

In particular, the committee felt that the power goes much further than the declared objective in the policy document and,

“it would enable the regulations to make substantial changes to Clauses 14 to 26 in a wide range of cases, for example, by excluding the provisions about compensation”.

I confess that the document, only having reached us at the end of January, shortly before the amendments were drafted, ought to have been subject to an amendment specifically dealing with that issue. I do not expect the Minister to respond immediately, but I hope that, before Report, he will indicate whether the Government would be minded to accept the redrafting recommendation referred to by the Delegated Powers Committee. If not, I give notice that we will remedy the omission this evening and table an appropriate amendment.

The committee was clear about the issue that I have raised, but it also makes a more general point about the Secretary of State and Welsh Ministers exercising this novel power, which could potentially have far-reaching consequences without first being required to consult interested parties. It therefore considered a consultation duty even more important, in view of the provision dispensing with the House’s hybrid instruments procedure. That raises issues about secondary legislation that have so often been raised. As I say, I would not expect the Minister to respond to something of which he did not have notice by way of an amendment tonight. I hope that the matter can be resolved en route to Report, but reserve the right to table amendments if it cannot be.

[Lord Young of Cookham]

My Lords, I shall deal first with the point that the noble Lord, Lord Beecham, has just made. Of course, I have read the report of the Delegated Powers and Regulatory Reform Committee, and there are three relevant recommendations relating to this Bill, two of which he mentioned. We take this very seriously; we are considering all three recommendations very carefully, and intend to respond before Report, so I hope that the nuclear option mentioned by the noble Lord may not be necessary.

I turn to Amendments 104, 104A and 129B. Clauses 14 to 26 of the Bill set out the broad framework for how the temporary possession power will work, establishing protections and providing for the payment of compensation. Further technical provisions will be necessary for the implementation of the temporary possession power. Clause 24 gives the Secretary of State the power by regulations to make further provision in relation to the authorisation and exercise of temporary possession powers where necessary. We will respond on that—and in the meantime we set out in the policy document what we propose to do. There is something there about reinstatement.

On Amendment 104, certain special kinds of land, including land held inalienably by the National Trust, are afforded additional protection under the compulsory acquisition process. This additional protection provides that a compulsory purchase order may be subject to special parliamentary procedure when an objection is sustained to the relevant order by, for example, the National Trust, or when exchange land for that to be acquired cannot be given, perhaps because no suitable land is available. I agree with the noble Baroness, Lady Parminter, that National Trust land should benefit from additional protection under the temporary possession regime; this is also true of those other special kinds of land. The Government have set out their intention to do precisely that in a policy document; we propose to do that through regulations made under Clause 24. Paragraphs 48 to 51 of that document set out more details.

The Government’s proposed approach under temporary possession differs from that under compulsory acquisition. Where the temporary possession of special kinds of land is happening without any associated compulsory acquisition, the special parliamentary procedure would not apply. Instead, the temporary possession will be allowed only when the confirming authority is satisfied that it would not cause serious detriment to the owners and users. Such serious detriment could include, for example, irreparable damage to the land concerned, or blocking access to other land or assets. When both temporary possession and compulsory acquisition of a special kind of land is included in the same order, and the compulsory acquisition is subject to special parliamentary procedure, the temporary possession land would also be subject to the special parliamentary procedure. However, I have listened with great interest to the case made by the noble Baroness, Lady Parminter, who raises an important issue, and the Government will, therefore, give further careful consideration to it before confirming our approach, to which I have just referred.

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Moved by

[Lord Young of Cookham]

105: Clause 25, page 20, leave out line 43

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[Lord Kennedy of Southwark]

My Lords, I will be brief. In this group, I have Amendments 116, 117, 118 and 119. The first three seek to leave out “highway” on page 24, lines 14, 16 and 17, and insert “transport project”. We thought that would make the issue clearer. New Sections 6D(3), 6D(4)(a) and 6D(4)(b) in Clause 27 use “transport project” and I therefore did not understand why later in the same clause it was referred to as a highway scheme. Can the Minister explain why that is the case and if my amendments are not necessary? If they are, I hope he will accept them as it is odd to move from the wider and encompassing definition of transport project to the narrower definition of “highway”.

Amendment 119 seeks to provide further clarity by removing “announced”. In these sorts of schemes you get into arguments about when things were announced so we thought it would be much clearer to put,

“first proposed in consultation with the public”.

There will be an actual date on which a consultation is started and when papers and a clear plan are sent out. We thought this would be much better as we do not want disputes later because everyone is arguing about when the scheme was formally announced. That is the purpose behind the amendment and I look forward to the Minister’s response.

[Lord Young of Cookham]

My Lords, we have moved on to the no-scheme principle. The problem with this principle is that since it was first established it has been interpreted in a number of complex and often contradictory ways. Clause 27 is intended to clarify the position. It creates a statutory no-scheme principle and sets out a series of clear rules to establish the methodology of valuation in the no-scheme world. It also extends the definition of the scheme to include a relevant transport project in circumstances where land acquired in the vicinity for a regeneration or redevelopment scheme is facilitated or made possible by that project. We are extending the scheme because we want to ensure that an acquiring authority should not pay more for the land it is acquiring by reason of its own or someone else’s public investment.

I am grateful to the noble Lord, Lord Shipley, for explaining the need for Amendment 107. The Committee will have observed that it is similar to government Amendment 108, so I am pleased to say that I am in complete agreement with the noble Lord. It is entirely correct that increases, as well as decreases, in the value of the land caused by the prospect of the scheme should be disregarded.

Amendment 109 was also proposed by the noble Lord, Lord Shipley. He argues that the words “in particular” should be omitted from the introduction to the rules defining the no-scheme world as they imply that some other rules might also be in play. He argues that the rules set out in new Section 6A should be an exclusive list. The Government’s expectation is that in the vast majority of cases the application of the rules as set out will be sufficient to establish the no-scheme world. There may, however, be rare cases in unforeseen circumstances where the Upper Tribunal considers that the application of the rules alone would not give a fair result. Retaining the phrase “in particular” gives the tribunal sufficient flexibility in these rare cases to fall back on the underlying no-scheme principle set out in new Section 6A(2) and its own common sense to arrive at a fair outcome. While I appreciate the noble Lord’s point about the need for clarity, the Government’s view is that the Upper Tribunal should retain this flexibility in order to reach a fair outcome in such unforeseen circumstances.

With Amendment 111, tabled by the noble Lord, Lord Shipley, and government Amendment 112 we now move to consideration of the rules themselves. The noble Lord, Lord Shipley, argues that Rule 4 is unnecessary and should be omitted. The Government’s view is that it remains necessary in order to complement Rule 3. Rule 3 assumes that there is no prospect of the same scheme or any other project to meet the same or substantially the same need as the scheme underlying the compulsory purchase. Rule 4 assumes that there is no prospect of any other scheme taking place on the land concerned. As currently drafted, this is too wide, so Amendment 112 restricts Rule 4 to disregarding only those schemes that could be undertaken only by the exercise of statutory functions or compulsory purchase powers. This means that the prospect of schemes brought forward by the private sector would still be considered as part of the no-scheme world. This is a fine point of valuation practice. In the light of what the noble Lord said, I think that the Government should further consider this issue very carefully with the expert practitioners who may conceivably have been briefing the noble Lord to find a solution.

Amendments 116, 117 and 118 were tabled by the noble Lord, Lord Kennedy. New Section 6D(6) specifies that when the scheme to be disregarded under Rule 3 is a highway scheme, the reference to “any other project” includes another highway scheme to meet the same need as the actual scheme. This provision reflects the planning assumption in Section 14(5)(d) of the Land Compensation Act 1961. It is important that the assumptions for the no-scheme world and the planning assumptions that should be applied in that no-scheme world should be consistent. The current Section 14 was substituted by the Localism Act 2011. A similar provision was added to the original version of Section 14 by the Planning and Compensation Act 1991. The noble Lord put forward a powerful case that this clarification could apply equally to other transport projects. If it did, Section 14 would also need to be amended to keep the two sets of assumptions in step. I think that this is another issue which the Government should reflect on with expert practitioners.

Turning to the definition of the scheme that must be disregarded before compensation may be assessed, government Amendments 113, 114 and 115 make some small adjustments in the context of the extension of the scheme to relevant transport projects. These have arisen from discussions between the Government and the Greater London Authority and Transport for London, which have only recently been concluded. I am very happy to give details if noble Lords would like them, but as they are relatively small adjustments, I propose to skip that part of the text.

I now return to the amendments tabled by the noble Lord, Lord Kennedy. Amendment 119 seeks to clarify new Section 6E(3) which disapplies Section 6E for land bought after a relevant transport project was announced but before this Bill was published. If such land were to be included in a redevelopment or regeneration project in the vicinity of that relevant transport project, it would be valued as if the relevant transport project was not part of the scheme to be disregarded.

The noble Lord’s amendment is much more specific than the Bill as currently drafted. The Government’s view is that such precision may not be necessary. The provision refers to an event that has already happened, and it is quite possible that a project may have been announced in some other way than that specified by the announcement. If so, it would be unfair to restrict this provision because the announcement did not fit within the somewhat narrow definition proposed.

However, having said that, it might be possible to clarify, perhaps in guidance, exactly what is meant by an announcement. That is certainly something that I would like to reflect on. I invite the noble Lord, Lord Shipley, to withdraw Amendment 107.

[Lord Shipley]

My Lords, I beg leave to withdraw Amendment 107. I look forward to reading carefully in Hansard what the Minister has said, with a view to potentially coming back to this on Report.

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Moved by

[Lord Young of Cookham]

108: Clause 27, page 21, line 25, after “land” insert “, or by the prospect of that scheme,”

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Moved by

[Lord Young of Cookham]

112: Clause 27, page 21, line 40, leave out “if the scheme had not been commenced or” and insert “in the exercise of a statutory function or by the exercise of compulsory purchase powers”

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Moved by

[Lord Young of Cookham]

120: Clause 31, page 27, line 27, leave out “section 333ZA and paragraph 19(1) of Schedule 11” and insert—
“(a) section 333ZA of this Act, and(b) paragraph 19(1) of Schedule 11 to this Act or Part 12 of the Highways Act 1980,”

[Lord Young of Cookham]

My Lords, we now move on to Clause 31, which deals with the joint acquisition of land by the Greater London Authority and Transport for London, and whose purpose I will briefly explain.

At the moment, for the GLA to bring forward a comprehensive redevelopment scheme in London involving both transport and other development, two compulsory purchase orders are needed: one promoted by the Greater London Authority for the regeneration or housing elements of the scheme, and the other promoted by Transport for London for the transport or highways elements of the scheme. This division makes no sense. It adds complexity and delay to the process and causes confusion among those most affected. Clause 31 removes this unnecessary division and allows the Greater London Authority to promote joint compulsory purchase orders with Transport for London and vice versa. It inserts new Section 403A into the Greater London Authority Act 1999, which enables either the Greater London Authority or Transport for London, or both, to acquire all the land needed for a joint transport and regeneration or housing scheme on behalf of the other.

The government amendments make two changes to the provisions as currently drafted. Amendments 120, 121 and 123 enable the Greater London Authority to promote a joint compulsory purchase order with Transport for London using Transport for London’s compulsory purchase powers as a highway authority under the Highways Act 1980 in addition to its general compulsory purchase powers under the Greater London Authority Act 1999.

Government Amendment 124 delivers the second change. New Section 403B of the Greater London Authority Act 1999 will enable a mayoral development corporation to promote a joint compulsory purchase order with Transport for London for a joint transport, including a highway, and regeneration project as an alternative to the Greater London Authority itself. Having set up a mayoral development corporation to regenerate an area, such as at Old Oak Common, the GLA would not normally seek to use its own powers in that area. I hope the Committee will agree with me that these are sensible provisions. With that explanation, I beg to move government Amendment 120.

[Lord Kennedy of Southwark]

My Lords, I have Amendments 122, 125 and 126 in this group. I will speak to them very briefly and look forward to the noble Lord’s response to the points I raise. Amendments 122 and 125 seek to make the situation clearer and to avoid the suggestion that a beneficial interest may exist, by removing the words,

“on behalf of the other”.

We do not think those words are necessary, and I propose to remove them in Amendments 122 and 125.

Amendment 126 would insert a new subsection into Clause 32, which would ensure that the GLA, TfL or a mayoral development corporation has the power to acquire land compulsorily for purposes under the Housing and Planning Act if it was previously able to do that under Sections 403A and 403B of the Greater London Authority Act 1999. I hope that we again get a positive response from the Minister accepting that I have highlighted an important issue to which, if nothing else, the Government will respond on Report.

[Lord True (Con)]

I see the wisdom of what is proposed in these amendments, reinforced by government Amendment 124, where an MDC is involved. I take it that it means only one compulsory order so that TfL is able to acquire land to advance housing projects, et cetera.

This may be my ignorance or otiose, but it appears that the way that this is drafted, based on the Greater London Act, TfL could exercise this new authority only in concert with the GLA or an MDC. However, there are other development authorities and planning authorities in Greater London: the London boroughs. I can envisage circumstances where there is neglected land alongside on a red route where TfL is the highways authority and a borough has an interest, but it may be too small to attract the interest of the Mayor of London. I simply raise the question to seek elucidation. It may not be necessary. Will it be possible when this is liberalised for TfL to use this power in concert with a borough without needing to go via the GLA or to set up a mayoral development corporation?

TfL gets cross when I say this in your Lordships’ House, but it is not always the most nimble authority when it comes to development. Some boroughs might be able to encourage it a little. I do not expect an answer now, but perhaps my noble friend will consider the need for such flexibility if TfL is to be given this new partnership power to acquire.

[Lord Young of Cookham]

My noble friend Lord True invites me to go way beyond my negotiating remit by extending to London boroughs the powers under the clause, which is intended to remove an existing duplication. However, I will of course consider his suggestion.

[Lord Kennedy of Southwark]

The noble Lord, Lord True, makes an interesting point. I am a member, although not the leader, of another London borough council. I think he makes a valid point which the Government could look at.

[Lord Young of Cookham]

It is indeed a valid point, but it goes wider than the narrow issue before us. As a former member of a London borough, albeit in 1968, I have an interest in enabling the boroughs to fulfil their full potential. I shall make some inquiries and write to my noble friend.

I thank the noble Lord, Lord Kennedy, for tabling Amendments 122, 125 and 126. They deal with two different clauses—Clauses 31 and 32—but as Amendment 126 is consequential on Amendments 122 and 125, I shall deal with them together.

I shall briefly explain what Clause 31 does. The Housing and Planning Act 2016, which will be fresh in the memory of many Members of the Committee, extended the statutory power to override easements and restrictive covenants when undertaking development to all bodies having compulsory purchase powers. Clause 32 amends this power to ensure that it operates as intended for the GLA and Transport for London and brings land acquired by their landholding subsidiary companies within the scope of the powers so that development on that land is not hindered.

I turn to the noble Lord’s Amendments 122 and 125. The Government’s intention in bringing forward the measure in Clause 31 is to allow the Greater London Authority or a mayoral development corporation and Transport for London to use their powers more effectively by allowing them to promote joint orders, as I explained. The amendments the noble Lord is proposing go beyond that and are not quite as innocuous as the noble Lord implied. They would effectively allow both organisations to acquire land for purposes for which they have no statutory power. For example, they would allow Transport for London to acquire land compulsorily for housing or regeneration purposes. This raises broader issues about competence. For those reasons, the Government do not think they are appropriate. It is a key principle of a compulsory purchase system that acquiring authorities should be allowed to acquire land by compulsion only for purposes associated with their statutory functions. Housing is not a statutory function of Transport for London.

The noble Lord’s Amendment 126 relates to the power to override easements in the Housing and Planning Act 2016 and appears to be consequential on Amendments 122 and 125 being acceptable, which, for the reason I have outlined, I am afraid they are not. I know it will come as a disappointment, but I invite the noble Lord, Lord Kennedy of Southwark, not to press Amendments 122, 125 and 126, for the reasons that I have given.

Amendment 120 agreed.

Moved by

[Lord Young of Cookham]

121: Clause 31, page 27, line 33, after “Schedule 11” insert “to this Act or Part 12 of the Highways Act 1980”

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Moved by

[Lord Young of Cookham]

123: Clause 31, page 27, line 42, after “Schedule 11” insert “to this Act or Part 12 of the Highways Act 1980”

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Moved by

[Lord Young of Cookham]

124: Clause 31, page 28, line 13, at end insert—
“403B Acquisition of land by MDC and TfL for shared purposes(1) This section applies where a Mayoral development corporation and Transport for London agree that the purposes for which they may acquire land compulsorily under—(a) section 207 of the Localism Act 2011, and(b) paragraph 19(1) of Schedule 11 to this Act or Part 12 of the Highways Act 1980,would be advanced by one or both of them acquiring land for a joint project.(2) The purposes for which the Mayoral development corporation may acquire land compulsorily under section 207 of the Localism Act 2011 are to be read as if they included the purposes for which Transport for London may acquire land compulsorily.(3) The purposes for which Transport for London may acquire land compulsorily under paragraph 19(1) of Schedule 11 to this Act or Part 12 of the Highways Act 1980 are to be read as if they included the purposes for which the Mayoral development corporation may acquire land compulsorily. (4) The Mayoral development corporation and Transport for London may agree that one of them is to acquire land on behalf of the other.(5) Where subsection (4) applies, a compulsory acquisition is to proceed under—(a) section 207 of the Localism Act 2011 if it is agreed that the Mayoral development corporation will acquire the land, or(b) paragraph 19(1) of Schedule 11 to this Act or Part 12 of the Highways Act 1980 if it is agreed that Transport for London will acquire the land.(6) Subsection (7) applies where—(a) the Mayoral development corporation and Transport for London both propose to acquire land compulsorily for a joint project, and(b) the proposed compulsory acquisitions require authorisation by different confirming authorities.(7) The proposed compulsory acquisitions are to be treated as requiring the joint authorisation of the confirming authorities.(8) The Mayoral development corporation or Transport for London may acquire land by agreement for the same purposes as those for which that body may acquire land compulsorily by virtue of subsection (2) or (3).(9) The joint project mentioned in subsection (1) is to be treated as the scheme for the purposes of the no-scheme principle in section 6A of the Land Compensation Act 1961 (impact of scheme to be disregarded when assessing value of land for compulsory purchase).””

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[Lord Kennedy of Southwark]

My noble friend Lord Beecham and I fully support the amendment proposed by the noble Lord and look forward to a positive response from the Government on it.

The noble Lord mentioned Millwall Football Club. A couple of weeks ago, when the noble Lord, Lord Young, was speaking to an order on overview and scrutiny committees in combined authorities, I put it on record that I did not think the council got it quite right, to say the least. Thankfully the CPO has now been withdrawn and the council has made it clear that whatever goes ahead in future will do so only with the involvement and agreement of the club, local businesses and the local community. I was very pleased with that, and pay tribute to my overview and scrutiny colleagues for their work to prise information out of the council to enable them to convince the mayor and the cabinet that that was the way to proceed. I also pay tribute to the campaigners, fans, supporters and the club. We certainly had a lot of unhelpful publicity in recent weeks, but overview and scrutiny, in particular, did a very good job.

[Lord Young of Cookham]

My Lords, the noble Lord, Lord Cameron, argued eloquently for a comprehensive review of the compulsory purchase system, supported by the noble Lord, Lord Kennedy. I listened to the very pertinent questions that the noble Lord, Lord Cameron, said needed to be addressed, including international comparisons, looking at marriage values of freehold and leasehold and all the other issues, and I read the first line of his amendment, which states that by the end of next year we have to complete a review and bring forward proposals. It seems to me a mammoth task to embrace all the questions that he has raised—of course there may be others—within a very challenging timescale.

The advice that I have is that, were we to undertake this review, it would take three years and we would end up with 250-plus clauses. I do not know about other members of the Committee, but 24 CPO clauses seems to me quite a lot. Then there would be a number of schedules. There is no realistic prospect of doing that within the timescale that the noble Lord suggests. However, I recognise that there is a strong desire among many for the compulsory purchase system to be simplified. We have heard speeches to that effect during our proceedings. As my honourable friend the Minister for Housing and Planning said in the other place, he has some sympathy with that, but, as I said a moment ago, a comprehensive review would be a huge undertaking. While the Government do not rule it out completely, we would need very careful consideration before we took it forward, and there would need to be clear consensus on its terms of reference and objectives.

I appreciate that this does not go nearly as far as the noble Lord has suggested, but the Government have been tackling specific issues within the CPO regime which practitioners have identified as causing problems, and we have tried to do this in the Bill by introducing the temporary CPO processes and rationalising the Greater London Authority and TfL powers, as well as by clarifying the no-schemes valuation process. We hope that that will make a real, practical difference on the ground and allow the compulsory purchase system to operate more effectively.

It is relevant to mention briefly the White Paper published yesterday, Fixing Our Broken Housing Market, because it flags up two further areas, which I am sure that the noble Lord would want to add to his list. First, there is the role that the CPO could play in helping to kickstart development on stalled housing sites. The White Paper sets out our intention to consult on new guidance encouraging local authorities to use their existing compulsory purchase powers to support the build-out of stalled sites. Secondly, the White Paper sets out the Government’s intention to investigate whether auctions, following the taking of possession of the land, are sufficient to establish an unambiguous value for the purposes of assessing compensation payable to the claimant when the local authority has used its compulsory purchase powers to acquire the land. Furthermore, the White Paper also makes it clear that we will continue to keep compulsory purchase under review and notes the Government’s willingness to consider representations on how the process might be reformed further to support development.

As I said, we have an open mind on the need for further reform—but I hope that, in the meantime, noble Lords will agree that we should not delay progress on delivering the reforms that we already have in hand, including those in the Bill. So although I have enormous sympathy with the noble Lord’s amendment, it would be unrealistic to expect the Government to support it.

[Lord Cameron of Dillington]

My Lords, I thank the Minister for his response and the noble Lords, Lord Kennedy and Lord Beecham, for their support. The Minister seemed to hint that he is willing to accept the principle of the amendment; that is how he started off. I accept that it might take longer than we had anticipated. To be honest, until I came to write my few words, I did not know how many questions I was going to find in the maelstrom of information that there is out there. I believe that it really would be worth doing, if only to consolidate the legislation list that I read out. As the Minister rightly said, there are probably even more questions than those that I discovered. I look forward to further conversations on this point and hope that, sooner rather than later, the Government will address this area with seriousness. I beg leave to withdraw the amendment.

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[Lord Kennedy of Southwark]

My Lords, Amendment 128 is grouped with 129, both of which stand in my name.

Amendment 128 seeks to clarify the application of Section 31 of the Housing Act 1985 to TfL or its subsidiaries to dispose of their surplus land for housing development where that is considered appropriate as long as the price obtained is,

“having regard to all the circumstances of the case … the best that can reasonably be obtained”.

The amendment uses the wording of Section 31 of the Housing Act 1985 and contains a restriction in paragraph 29 to Schedule 11 of the GLA Act 1999 to ensure that the powers to sell and develop land for housing are consistent in this context. Amendment 129 is similarly worded and seeks to ensure that there is consistency between the TfL and the GLA in this regard. I look forward to the Minister’s response. I beg to move.

[Lord Young of Cookham]

My Lords, this will be my last contribution to this exchange. I am happy to end on a more consensual note than was the case on some of the earlier contributions.

Amendments 128 and 129 in the name of the noble Lord seek to make new provision in the Greater London Authority Act 1999, which would amend the powers of Transport for London and the GLA to dispose of land.

Amendment 128 seeks to give Transport for London the flexibility to dispose of land for housing, even if a higher value use was available, provided the best consideration reasonably obtainable for housing use had been achieved. To support this aim, Amendment 128 would also remove the requirement for TfL to,

“act as if it were a company engaged in a commercial enterprise”,

when disposing of land for housing.

Amendment 129 would make related provision in respect of the GLA. It would enable the GLA to dispose of land for housing without obtaining the Secretary of State’s consent, even if a higher value use was available, provided that the best consideration reasonably obtainable for housing use had been achieved.

I am very sympathetic to the intention of these amendments of providing flexibility to ensure that we can prioritise land for housing development. However, the legal issues involved are not entirely straightforward, and I think the public interest would be best served if a meeting was held between the Government, the GLA and TfL before Report to consider this further. With the reassurance that I will facilitate such a meeting, I hope that the noble Lord might be prepared to withdraw the amendment.

[Lord Kennedy of Southwark]

I thank the noble Lord very much for that positive response to these two amendments. On that basis, I am very happy to withdraw the amendment and look forward to a very fruitful meeting between the various parties.

Neighbourhood Planning Bill

Lord Young of Cookham Excerpts

Report: 1st sitting: House of Lords
Thursday 23rd February 2017 Lords Chamber

[Lord Kennedy of Southwark]

My Lords, Amendment 11 in my name and that of the noble Baroness, Lady Parminter, deletes the proposed new powers for the Secretary of State to set conditions on the granting of planning permission. This matter was discussed at some length in Grand Committee, and I did not feel then and still do not feel that the noble Lord, Lord Bourne, has made a convincing case for why the powers should be granted. We have had little evidence to date that they are necessary. If there was a major problem, I suspect we would have heard a lot more about it outside the Chamber. I see little evidence and, if I was wrong, I would expect to have had emails, letters and requests for meetings from builders, trade bodies and others trying to convince me and tell me why I was wrong and why they needed the changes. I do not recall one organisation getting in touch about the problems and why the powers need to be taken by the Government.

Planning conditions and pre-commencement planning conditions imposed by a local authority must always be reasonable, necessary and help to deliver sustainable development; there is no point delivering development that is unsustainable. We would just be creating a problem down the line for others to deal with because we did not have the foresight or ability to face up to the challenges before us.

I think it was the noble Lord, Lord True, who is not in his place, who said in Committee in the Moses Room that he feared the department was bringing out a dreadnought to deal with problems on the local public pond. I agree, and I have heard nothing so far from the Minister—perhaps I will in a moment—to convince me otherwise.

Far too much planning legislation from this Government has been about centralising power, agreeing what can or cannot be done by regulations and with the power to impose conditions. I remind the House that this is the sixth piece of planning legislation in six years. It is just not the case that local authorities are against development; there is no evidence to support that. There is ample evidence to suggest that local authorities are best placed to make decisions about sustainable development, consulting local people within the framework. The framework is quite properly set out by the Government, but it must be a framework, not a straitjacket that prevents local authorities playing their full role. I beg to move.

[Lord Young of Cookham (Con)]

My Lords, the co-pilot is in charge of this part of the Bill. I am grateful to the noble Lord, Lord Kennedy, for revisiting an issue that we spent some time on in Committee. Amendments 11 to 14, tabled by the noble Lords, Lord Kennedy and Lord Beecham, and the noble Baroness, Lady Parminter, either remove subsection (1) from new Section 100ZA, and corresponding subsections (2) and (3), or apply exemptions to how the power is to be exercised. I will deal with Amendments 12 and 14 separately, but Amendments 11 and 13 together, as they deal with leaving out the whole of the wider power.

Amendments 11 and 13 would remove a key measure from the Bill, which is designed to put on the statute book what is already best practice in the appropriate use of planning conditions. The power under subsection (1) would allow the Secretary of State to ensure that certain conditions were not imposed, in certain circumstances, where this is appropriate to ensure that conditions meet the policy tests for conditions as set out in the National Planning Policy Framework.

Conditions which fail to meet the tests in the framework can cause unjustifiable delays and costs to the delivery of new development. The noble Lord, Lord Kennedy, asked for further evidence of the misuse, or potential misuse, of preconditions. This issue has arisen frequently during our debates. It is not a recent issue, and the claims date back several years. The Home Builders Federation has seen instances where unnecessary or unreasonable pre-commencement conditions have been imposed on development—for example, full details of a play area which, while commendable as a condition in general, could easily be discharged at a later stage. This is not just an issue with larger housebuilders. Small builders have also expressed dissatisfaction with the use of conditions. Research by the National House Building Council in 2014 found that 33% of small and medium-enterprise builders identified the planning process and conditions as the largest constraint to delivery. As well as issues with the time to discharge, 29% of respondents thought that the extent of conditions was an issue. If we are serious about increasing housing supply, we need to do all we can to support the builders.

Government planning guidance provides examples of specific circumstances where conditions should not be used, such as conditions which place disproportionate and unjustifiable financial burdens on an applicant. Removing subsection (2), as proposed by Amendment 13, would remove an important constraint on the regulation-making power in subsection (1). Subsection (2) ensures that the Secretary of State may make provision in regulations only if such provision is in pursuit of the policy tests. In effect, it places each of the policy tests in paragraph 206 of the framework on a statutory footing.

As with subsection (2), leaving out subsection (3), as proposed by Amendment 19, would also remove an important constraint and safeguard on the power in subsection (1). Subsection (3) requires that before making regulations under subsection (1), we must carry out a public consultation. This would afford the opportunity for local views to be put forward as part of the process for determining how the power will be exercised.

The Government published draft regulations in December to illustrate the proposed use of the regulation-making powers in Clause 13. The draft regulations have informed our debate by clarifying how the power might be used.

In Committee concerns were raised about the potential for Clause 13 somehow to act as an anti-localist measure. I should clarify that we intend to use the powers in Clause 13 to restrict local authorities’ ability to impose those conditions in regulations, already identified in planning practice guidance, which fail to meet the well-established policy tests in the NPPF. A reasonable local authority would not seek to impose such conditions.

We recognise that an opportunity for users of the planning system to comment on the proposed regulations would be beneficial. Therefore, subject to the Bill receiving Royal Assent, we will consult on the draft regulations.

I can also confirm that, following the recommendations of the Delegated Powers and Regulatory Reform Committee, and in the light of concerns raised by noble Lords, about the intended use of the power in the Bill, we have tabled a government amendment that would apply the affirmative procedure to the exercise of the power in new Section 100ZA(1). This will ensure the necessary parliamentary scrutiny of how the power is exercised.

The effect of Amendments 11 and 13 would be to miss this opportunity to elevate best practice on the use of planning conditions. I hope that I have justified why the regulation-making power is integral to ensuring a robust and sustainable planning system. Therefore, with the reassurances I have provided on further safeguards on the exercise of this power, I ask the noble Lord to withdraw his amendment.

On Amendment 12, I reiterate what my noble friend said in Committee. There are good intentions behind the amendment, which is intended to ensure a local voice in judging local circumstances and the impact of planning decisions. That is absolutely the Government’s aim. The Government intend to use the power in new Section 100ZA to prevent the use of unreasonable and unnecessary conditions which are already well established in the Government’s planning practice guidance as not meeting the tests set out in the National Planning Policy Framework.

In response to the Committee debate held on 6 February, my noble friend wrote to noble Lords, providing further information on the policy objectives for the power to make regulations under subsection (1) of the new Section 100ZA. It will not restrict the ability of local authorities and neighbourhood groups to prepare local plans and neighbourhood plans and it will not restrict their ability to determine applications for development in accordance with those plans.

Subsection (1) of the clause will ensure that the well-established policy tests for conditions are adhered to. These tests are reflected in the wording of subsections (2)(a) to (d) of the new Section 100ZA and constrain the use of this proposed regulation-making power and ensure that conditions imposed on a grant of planning permission make the development acceptable in planning terms; are relevant to the development and to planning considerations generally; are sufficiently precise to make it capable of being complied with and enforced; and are reasonable in all other respects. In other words, the Secretary of State may make provision in regulations only if such provisions are in pursuit of these policy tests.

While I am confident that the constraints referred to above are sufficient, I do understand the concerns expressed about the use of this power, and that it may somehow prevent local authorities being able to use their discretion in carrying out their planning duties. However, we believe that it would be detrimental to the planning process for regulations made under the new Section 100ZA(1) to provide for local authorities to make exceptions to the prohibition of the use of certain conditions. I cannot foresee a situation where a local authority would want to make a local exception to regulations under subsection (1), especially if this would have the effect of allowing the imposition of the types of conditions that are already well established in government guidance as being contrary to the national policy tests. In fact, during our consultation on this measure, local authorities agreed overwhelmingly that conditions should be imposed only if they passed each of the national policy tests.

As a further assurance for local authorities and other interested parties, subsection (3) of new Section 100ZA includes a requirement to carry out a public consultation before making regulations under subsection (1), so this will provide an opportunity for local views to be put forward and given full consideration in advance of making regulations. In addition, the Government have tabled an amendment that would require any regulations under subsection (1) to be approved by each House of Parliament. I hope that, for the reasons I have set out, noble Lords will not press that amendment.

The Government’s position on Amendment 14 remains as it was in Committee on the Bill, and in another place, where it was tabled. I am not sure that the noble Lord, Lord Kennedy, particularly pressed Amendment 14. If the House will permit, I might skip the relevant pages because they are broadly similar to an argument deployed by my noble friend in Committee.

I emphasise finally that if subsection (2) was left out of the clause, it would remove a vital constraint on the power in subsection (1) so that it can only be used to ensure that any conditions imposed meet the well-established policy tests for conditions in the National Planning Policy Framework. In effect, subsection (2) places each of the policy tests in paragraph 206 on a statutory footing. As noble Lords are aware, further safeguards on the use of this power are provided. Before making regulations under subsection (1) we are required to carry out a public consultation, as set out in subsection (3), and the Government have now brought forward an amendment which would require the approval of both Houses of Parliament. I hope that, for the reasons I have set out, the noble Lord will withdraw his amendment.

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[Lord Beecham]

My Lords, I can reassure the Deputy Speaker that I shall not take long. The amendment deals with restrictions on planning conditions set out in Clause 13, and in particular the new provision which will incorporate into the Town and Country Planning Act new Section 100ZA which deals with restrictions on the power to impose planning conditions.

Amendment 15 is basically a simple amendment that adds something to the conditions that will apply to those regulations. For example, the Bill refers to them as having to be,

“necessary to make the development acceptable in planning terms …relevant the development … sufficiently precise to make it capable of being complied with and enforced … reasonable in all other respects”.

The amendment simply adds,

“sustainable development and public interest”,

to the criteria for making those regulations. I hope that the Minister will feel able to accept that and I beg to move.

[Lord Young of Cookham]

My Lords, I am grateful to the noble Lord for moving his amendment. I do not think there is any disagreement between us on the objectives that planning decisions should be acceptable to local people and that planning development should be sustainable.

Amendment 15 covers similar ground to that of the previously discussed Amendment 14, in that it is also intended to ensure that these measures do not have an adverse impact on sustainable development. Sustainable development is at the very heart of the planning system, as reflected in the National Planning Policy Framework, and I can assure noble Lords that Clause 13 will contribute to this goal.

My noble friend has written separately on this matter, as promised, to the noble Lord, Lord Kennedy, in Committee, giving reassurance of our commitment to see that development that takes place is sustainable and in line with the well-established policy tests in the NPPF. Clause 13 will not impact on local authorities’ ability to seek to impose any necessary conditions and appropriate protections for important matters such as heritage, the natural environment and measures to mitigate the risk of flooding. That ability will be maintained, as well as the ability of local people to make representations to the local planning authority on how a development proposal will affect them.

If the amendment were introduced, it would add to the list of constraints on the Secretary of State’s regulation-making power in subsection (2) of new Section 100ZA by explicitly requiring the Secretary of State to take account of sustainable development and the public interest in deciding whether it is appropriate to exercise the power in subsection (1), as the noble Lord explained.

As my noble friend said in Committee, and I say again now, both sustainable development and the public interest are already relevant planning considerations in the NPPF, and I can reassure the noble Lord that these matters are already captured in subsections (2)(a) and (b) of the clause we are discussing. This includes the need to consider the presumption in favour of sustainable development which drives planning policy, plan-making and decision-taking—and local views, which are already central to the planning system.

In terms of taking account of the public interest, and that planning decisions and conditions are acceptable to local people, we continue to ensure that the planning system is centred on community involvement. It gives statutory rights for communities to become involved in the preparation of the local plan for the area, and any neighbourhood plans—including strengthening their powers in this area through the Bill—and to make representations on individual planning applications, and on planning appeals, in the knowledge that the decision-maker will give these representations full consideration. I hope that, for the reasons I have set out, the noble Lord might feel able to withdraw his amendment.

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[Lord Beecham]

My Lords, Amendments 16 and 17 in this group are connected to issues of major concern. They seek to protect communities from extremely controversial decisions in areas with which we are becoming increasingly familiar; for example, fracking and other processes which impact on the environment. Fracking, I guess, is currently the most controversial of these. Similar concerns around minerals, waste development and the like are covered in Amendment 17. The intention here is to make it clear that the regulations which are otherwise authorised by this part of the Bill would not extend to these very controversial areas. In other words, there would have to be primary legislation to embark on changing the position on these particularly controversial areas. Some danger, I think, is sensed at the moment about the Government’s enthusiasm for fracking; their overriding of local authority concerns, for example, in Lancashire, is very controversial. These amendments are designed to constrain the exercise of those powers, which we may see more of under the Bill, in such decisions taken by government over the wishes of local communities, and effectively outside the normal planning process. I hope the Government will rethink their position on these matters. I beg to move.

[Lord Young of Cookham]

My Lords, I am, again, grateful to the noble Lord, Lord Beecham, for explaining the reasons behind his amendment and understand the concerns he has expressed about those confronted with substantial developments involving minerals and other raw materials.

Amendment 16 would allow exemptions to be made to any regulations brought forward under new Section 100ZA(1) for certain types of development. In this case, the amendment relates specifically to the environmental impact assessment of development. As the noble Lord explained, environmental impact assessments are demanded of development likely to have significant effects on the environment. These assessments are a way of ensuring that local planning authorities, in deciding such applications, are in full knowledge of the likely significant effects, and take these into account during the determination process.

I recognise that the noble Lord’s amendment appears to stem from a wider concern about the measures—that they might in some way weaken existing environmental protections. I confirm that the Government intend to use the power in new Section 100ZA to prevent the use of unreasonable and unnecessary conditions, which are already well established in the Government’s planning practice guidance as not meeting the tests set out in the NPPF.

A local authority will still be able to impose planning conditions necessary to be able to grant planning permission for environmental impact assessment development, provided that those conditions meet these six tests. The Secretary of State may make provision in regulations under new subsection (1) only if he is satisfied that such provisions are in pursuit of these policy tests.

That is why, as set out in the draft regulations we published in December, we are proposing to prohibit the types of conditions set out in guidance as failing to meet the policy tests. I hope this will reassure the noble Lord, Lord Beecham. I should like to be very clear that our guidance currently advises that these types of conditions should not be applied to any grant of planning permission, whether an environmental impact assessment is required or not. We cannot foresee a situation where a local authority would want to impose such conditions on any planning permission. As a further means of assurance, we propose that these regulations will be subject to the affirmative resolution of both Houses of Parliament, which will ensure appropriate levels of scrutiny.

Amendment 17 is similar. It exempts minerals or waste development from new subsection (1). The arguments for rejecting Amendment 17 are broadly similar to those against Amendment 16: the Bill will not impact the ability of local planning authorities to impose planning conditions to ensure the necessary protections to achieve sustainable development, provided they meet the well-established policy tests.

I also emphasise that our guidance currently advises, as I have just said, that these types of conditions should not be applied to any grant of planning permission, as they clearly do not meet the national policy tests in the NPPF. We cannot foresee a situation where a local authority would want to impose such conditions on the grant of any planning applications. We therefore do not see a need to make exceptions, as the amendments seek to do, for EIA development, minerals and waste applications, or any other type of development. With those reassurances in mind, I hope the noble Lord will withdraw his amendment.

[Lord Beecham]

My Lords, I am grateful to the Minister for his reply. I am partly reassured by reference to the affirmative procedure being applied in these cases, which allows greater parliamentary scrutiny. In those circumstances, I beg leave to withdraw the amendment.

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[Lord Shipley]

My Lords, I agree that Amendments 18 and 25 are important, although the comments of the noble Lord, Lord Lansley, largely related to Amendment 25, and perhaps to some others that we will deal with later, on the subject of pre-commencement conditions. Those comments were very similar to ones that I recall him making in Committee. I repeat what I said on that occasion, which is that I find the case exaggerated. I do not find the evidence base that the Government came up with for the problems requiring this solution to be as great as they imagine it to be, and I have heard nothing further to convince me that that is the case.

Clause 13 is simply one clause, but almost a third of the amendments tabled to date relate to it. Twenty-four amendments to Clause 13 have been tabled by noble Lords, and that suggests to me that there is something structurally wrong with it. Therefore, I hope that the Minister will feel that there is a great deal of merit in Amendments 18 and 25.

In response to another comment from the noble Lord, Lord Lansley, I would just say that I do not think that a local planning authority should have to negotiate a written agreement with a developer on a matter which is in conformity with the National Planning Policy Framework. It seems that there is a basic principle there that the Government should surely support, and it is spelled out in Amendment 18. I think that a local planning authority should have the right to impose a condition if it is in line with the National Planning Policy Framework. Therefore, I hope very much that, when he replies, the Minister will tell us that he agrees with the wording of the amendment.

[Lord Young of Cookham]

My Lords, I am grateful to all noble Lords who have taken part in this debate—particularly to the noble Lord, Lord Stunell, who may have endeared himself to me by saying that I could be trusted above every other noble Lord in the Chamber. However, I am not sure what the reaction of other noble Lords might have been to that. He also implied that I might not be in government for ever. That is a question which my wife sometimes asks me. I first joined the Government in 1979 and have left it four times, each time thinking it was the last time but each time, back I come. If the noble Lord, when he was a Minister in the DCLG, was given a one-line zinger to deal with any amendments, he was more fortunate than I am this afternoon.

Perhaps I may try to address some of the issues, which to some extent go broader than Amendments 18 and 25. First, I reassure noble Lords that this clause will not stop local authorities seeking to impose planning conditions that address any specific issue—the natural environment, heritage, archaeology or flood mitigation—where those conditions meet the policy tests in the National Planning Policy Framework. Those protections remain in place and changes to the Bill are not needed to maintain this position.

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[The Deputy Speaker (Lord Faulkner of Worcester) (Lab)]

I must advise the House that if Amendment 19 is agreed to, I am not able to call Amendment 20 for reasons of pre-emption.

[Lord Young of Cookham]

I am grateful to the noble Lord, Lord Kennedy, for speaking to his amendments. He said that the Government had not set out the purpose of the clause. In response to the noble Lord, Lord Stunell, in the debate that we have just had, I set out the two main objectives of Clause 13. I hope that, on reading Hansard, noble Lords might find that that was a succinct explanation of why we believe that the clause is necessary. The policy was announced in the Budget last year and confirmed in the Queen’s Speech, and we have set out the case on several occasions during the passage of the Bill.

There are a substantial number of amendments in this group and if I am to do justice to them all, I am afraid that it may take a moment or two—although less time than when the speaking note was originally drafted. I will begin with Amendment 19, tabled by the noble Lord, Lord Kennedy, and the noble Baroness, Lady Parminter, which would remove subsection (3) of new Section 100ZA. This amendment would therefore remove an important constraint and safeguard on the power in subsection (1), much the same as Amendments 11 and 13, which we have already discussed. Subsection (3) requires that, before making regulations under subsection (1), the Secretary of State,

“must carry out a public consultation”.

This would afford the opportunity for local views to be put forward as part of the process for determining how the power will be exercised.

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Moved by

[Lord Young of Cookham]

29: Clause 13, page 14, line 15, at end insert—
“(6A) Before making regulations under subsection (6) the Secretary of State must carry out a public consultation.”

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Moved by

[Lord Young of Cookham]

31: Clause 13, page 14, line 29, at end insert—
“(8A) The Secretary of State must issue guidance to local planning authorities about the operation of this section and regulations made under it.(8B) The Secretary of State may, from time to time, revise guidance issued under subsection (8A).(8C) The Secretary of State must arrange for guidance issued or revised under this section to be published in such manner as the Secretary of State considers appropriate.”

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Moved by

[Lord Young of Cookham]

33: Clause 13, page 14, line 36, at end insert—
“( ) In section 333 of the Town and Country Planning Act 1990 (regulations and orders) after subsection (3ZA) insert—“(3ZAA) No regulations may be made under section 100ZA(1) unless a draft of the instrument containing the regulations has been laid before, and approved by a resolution of, each House of Parliament.””

Neighbourhood Planning Bill

Lord Young of Cookham Excerpts

Report: 2nd sitting (Hansard): House of Lords
Tuesday 28th February 2017 Lords Chamber

Moved by

[Lord Young of Cookham]

41: Clause 16, page 16, line 30, leave out subsection (2) and insert—
“(2) The temporary possession of the land must be authorised by the type of instrument (the “authorising instrument”) that would be required if the acquiring authority proposed to acquire that land compulsorily for the purposes for which it proposes to take temporary possession of that land.”

[Lord Young of Cookham (Con)]

My Lords, the co-pilot is back in charge and I am hoping for a smoother flight than the one I had on Thursday, when I encountered some turbulence as we flew over Clause 13. I listened with some interest to the debate we just had as a former councillor of the south London Borough of Lambeth; that was a very long time ago. We now move on to Part 2 of the Bill and amendments to the compulsory purchase provisions. Noble Lords will have noted that there are a large number of government amendments. These are mainly to ensure that the temporary possession provisions in the Bill work as intended and are fair to all, but they also respond positively to issues raised by noble Lords in Committee.

Amendments 41 to 43 amend Clause 16, which sets out the procedure for authorising temporary possession. In Grand Committee the noble Baroness, Lady Parminter, spoke eloquently to the amendment tabled by the noble Baroness, Lady Andrews, and herself about the need to ensure that land held inalienably by the National Trust is appropriately protected in the context of the new temporary possession power. As I indicated we would, the Government have considered the matter further, and I am happy to tell both noble Baronesses that we are now in agreement that the special interest of inalienable National Trust land, and its irreplaceable nature, requires particular protection.

Amendment 42 is the principal amendment in this group. It makes provision for any inalienable National Trust land which is required temporarily to be subject to the same additional protection as National Trust land which is to be acquired by compulsion. This means that where the National Trust sustains an objection to the taking of temporary possession of any of its inalienable land, the authorising instrument will be subject to special parliamentary procedure, in the same way as it would if the land was being acquired by compulsion.

The other amendments are technical and consequential. Amendment 41 clarifies that temporary possession must be authorised by the same type of instrument as would have been used if the land in question had been compulsorily acquired for the same purposes for which temporary possession is needed. Amendment 42 works by an exception to Clause 16(3)(c), which provides that where an authorising instrument authorises temporary possession then, for the purposes of the procedures for authorising and challenging it, temporary possession is treated in the same way as compulsory acquisition. Amendment 42 is therefore drafted so that it disapplies special parliamentary procedure for special kinds of land except for National Trust land held inalienably. As confirmed in the Government’s policy paper published in December 2016, special kinds of land other than National Trust land will be subject to the serious detriment test in the temporary possession regulations made under Clause 26. Amendment 43 clarifies Clause 16(3)(c) by removing a potential ambiguity allowing the clause to be interpreted in two different ways.

I now move to Clause 17 and Amendment 45. In Grand Committee, the noble Lord, Lord Shipley, raised the issue of whether there would be a time limit on acquiring authorities exercising their power of temporary possession after it had been authorised. This is an important matter and I am grateful to the noble Lord for raising it. Amendment 45 addresses the issue by providing that acquiring authorities must serve a notice of intended entry within three years from the date on which the compulsory purchase order authorising temporary possession becomes operative. Where temporary possession is authorised by a different type of authorising instrument—for example, a development consent order—the time limit for serving the notice of entry is within five years of it becoming operative. These limits are in line with those where land is being acquired by compulsion.

Amendments 47, 50, 50A, 50B, 50C, 51, 52 and 61A deal with the power to override easements and other third-party rights over land taken for temporary possession. Where land is taken by compulsion, acquiring authorities have this power, which is necessary to ensure that there are no impediments to the scheme going forward. These third-party interests are typically rights to allow underground services such as water, gas, electricity and telecommunication belonging to one property to pass beneath the land of neighbouring properties; there are also rights of light and of way and covenants restricting development to certain uses or density. Land needed for a temporary period may also be subject to easements or restrictive covenants, so to avoid problems such as those with insurance or litigation it is necessary for acquiring authorities to have the power to override these rights when they take temporary possession of land. That is what these amendments do. The provisions are modelled on the corresponding provisions for schemes where land is acquired by compulsion as set out in Sections 203 and 205 of the Housing and Planning Act 2016. Amendment 51 is the principal amendment, as it contains the power to override a relevant right or interest. Amendment 47 sets out the compensation provisions.

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[Baroness Parminter]

My Lords, I sincerely thank the Minister for the consideration that he and the ministerial team have given to the comments and concerns that I raised in Committee. I offer those thanks on behalf of myself and the noble Baroness, Lady Andrews, who is no longer able to be in her place. In particular, I welcome Amendments 42 and 55, which specifically address the concerns that we had about the impact of the temporary possession proposals on the special land that the National Trust holds for the good of the nation. I am delighted with the way that the Minister has retained the status quo for the National Trust’s inalienable land. I thank him most sincerely.

[Lord Young of Cookham]

I am grateful to all noble Lords who have taken part in this debate, particularly to those who welcomed the amendments tabled by the Government to meet concerns expressed earlier on.

If I may respond briefly to the very important issues raised by the noble Lord, Lord Campbell-Savours, no one is more anxious than I am to see more houses being built. In view of his interest, he might like to come along on Thursday, when we have a debate on the White Paper, which will be a broader debate about housing. I will make three quick points about the question that he raised. First, Clause 29, the no-scheme principle, makes no fundamental changes to the principle of compensation. It seeks to clarify where we are by looking at past cases and setting out some clear rules, Rules 1 to 5, so that we can, in future, fairly assess the compensation that people are entitled to if they are affected by a CPO.

The second point, which really arises from that, is that we have always paid the market value. For as long as I have been involved in this type of legislation, when somebody’s land or property has been acquired, we have always paid the market value. That is the right thing to do in a fair society; otherwise, one is verging towards confiscation. If you are going to take away something at less than its value from an individual who does not want to part with it, that is approaching what could be called confiscation.

[Lord Campbell-Savours]

The Minister talks about its value, but its value prior to the planner signing it off and designating it as land for housing is agricultural. That is what it is.

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[Lord Young of Cookham]

The compensation is based on the existing use value. Sometimes that might have a hope value, and in some of the circumstances he has outlined, it might not be zoned for housing, but the market value might be slightly above agricultural value because of so-called hope value. That gets priced in. The important point is that we pay market value. What the noble Lord wants to do is to acquire it at below market value to facilitate the building of more houses. I understand that, but that is not the principle on which people have been compensated for the last 40 or 50 years; they have always had the market value.

Thirdly, the no-scheme principle says that if the value of your property has suddenly gone up because of something that the public sector is building—a station or whatever—then that is disregarded for the purpose of assessing its value. That is what we do: that is what the no-scheme principle implies, so you do not get the benefit of the public investment that has accelerated the value of your land. I hope that I have satisfied the noble Lord. Although he is smiling, I suspect that I might not have. On the rather slender hook of Amendment 62, he has hung a very substantial debate, perhaps more appropriate to the Second Reading of this Bill many months ago. Of course, however, I would be happy to have further discussions with him if he has any continuing concerns about how land is acquired compulsorily.

Amendment 41 agreed.

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[Lord Kennedy of Southwark]

My Lords, this is the last amendment on Report. We had a short debate in Grand Committee on 8 February. The amendments I tabled then and have tabled now are to help the discussion taking place between the department, the Government, Transport for London and the Greater London Authority in respect of the powers that those authorities think they need to dispose of land and help build more housing.

I am hoping the Minister will be able to respond to this and update us on where we have got to in discussions so far. I do not believe any agreement has been reached, as yet. I hope we are going to get somewhere and that we will not reach the end of this process with nothing having been agreed. That would be most disappointing. I got a fairly positive response from the Minister in Grand Committee. I will leave it there. I hope the Minister can respond positively and tell us that, although nothing has yet been agreed, the discussions are ongoing. We all hope that we will get some resolution before we reach the end of this process. I beg to move.

[Lord Young of Cookham]

My Lords, I am grateful to the noble Lord, Lord Kennedy, for the bridge-building way in which he moved the amendment. Amendments 65 and 66 seek to make new provision in the Greater London Authority Act 1999 which would amend the powers of Transport for London and the Greater London Authority to dispose of land.

Amendment 65 seeks to give Transport for London the flexibility to dispose of land for housing, even if a higher value use was available, provided the best consideration reasonably obtainable for housing use had been achieved. To achieve this, Amendment 65 would disapply the requirement for TfL to,

“act as if it were a company engaged in a commercial enterprise”.

Amendment 66 would remove the requirement for the GLA to obtain the consent of the Secretary of State to the disposal of land for housing, even if a higher value use was available, provided the best consideration reasonably obtainable for housing use had been achieved.

In Grand Committee, I promised to facilitate a meeting between the Government, the GLA and TfL before Report to discuss how we should respond to the concerns the noble Lord had raised. I confirm that that meeting has taken place.

We have been working with TfL to assess the impact of making the proposed amendment, but unfortunately we remain concerned about the potential impact of Amendment 65 on TfL’s overall receipts targets and consequently on public finances more generally. Given these ongoing concerns, I cannot accept the noble Lord’s amendment, but I can assure him that the Government will continue to work with TfL to address those concerns and ensure that TfL is able to meet both its housing and its receipts targets.

On Amendment 66, the noble Lord will be aware that the Government made a commitment in the housing White Paper to consult on extending the ability of local authorities to dispose of land at less than best consideration without seeking consent to do so from the Secretary of State.

Land disposals by local authorities are governed by a separate regime from those undertaken by the GLA. I do not believe it would be right in this Bill to reduce the protections established by the current requirement for consent of the Secretary of State for disposals by the GLA at less than best consideration. The White Paper did not specifically reference this GLA consent requirement, but I reassure the noble Lord that the scope of the consultation announced in the White Paper will extend to the GLA consent regime.

With the reassurance that we will continue to work with TfL and the GLA to find appropriate solutions to the very real concerns the noble Lord has raised, I hope he will be prepared to withdraw the amendment so that we can end Report on a consensual note.

[Lord Kennedy of Southwark]

I am happy not to press my amendments at this stage, but will just say that I do not know whether these discussions are ongoing. Is the noble Lord suggesting that there may be some light and that this may come back at Third Reading or is he suggesting that it is more likely that this will be addressed in a White Paper? Or could it be either? Some clarification on that would be useful. Important points have been raised. The Mayor of London has specific targets for building homes in London, and we all want to see that happen—but if you want to get it done, these things need to be addressed. With that, I beg leave to withdraw the amendment.