Planning and Infrastructure Bill (Eleventh sitting)

Luke Murphy Excerpts

Committee stage
Tuesday 20th May 2025 Public Bill Committees

I therefore ask the Minister to think again about reducing the element of compensation for landowners. Being a landowner does not necessarily mean that someone is exceptionally well-off. It simply means that landowners will go through huge disruption, particularly if they want to challenge the CPO. Given that we agree with the level of compensation that the Minister has set in the new regime for occupiers, it is fair that he reconsiders. Has he made an assessment of any costs that the new clause would incur? Will he explain why he believes that the element of fairness in the system that the new clause introduces should not be accepted? I ask him to reconsider his resistance to it.

[Luke Murphy (Basingstoke) (Lab)]

It is a great pleasure to serve under your chairship, Ms Jardine. I want to ask the Minister a couple of questions about compulsory purchase and redevelopment and regeneration schemes. A significant regeneration scheme has been proposed in Basingstoke for the communities of South Ham and Buckskin by the housing association SNG. To say that the consultation with residents has been badly handled is an understatement. I have been calling for a complete reset of the project by SNG, which has fundamentally failed to take the community with it. It has lost the trust of many people, from its tenants to local homeowners and private renters. It must rebuild that trust. I have committed to working with residents to ensure that any plans benefit and have the support of the local community.

One of the key concerns of the community is the threat of widespread compulsory purchase. Can the Minister confirm that nothing in the Bill will weaken the voice or say of residents involved in redevelopment or regeneration schemes, where CPO is involved? Can he also confirm that CPO should always be used as a last resort, that it must always be taken in the public interest, and that it will not change the compensation available to ordinary owner-occupiers and tenants involved in such regeneration schemes?

[Matthew Pennycook]

I thank all Members for their contributions. To the point made by my hon. Friend the Member for Basingstoke, I do not think that I can add much more to the very clear set of principles that have guided our approach in opening this particular part of the Bill. This is not particularly directed at the shadow Minister, but there has been a fair amount of scaremongering about what the compulsory purchase provisions in the Bill entail, which has not always been completely accurate—let me put it as gently as that.

In response to a number of the challenges, I recognise why the shadow Minister raised his point, and I addressed the point about the Welsh Government. Welsh Ministers have devolved competence to reform loss payments for CPO in Wales, and therefore this clause applies in the way that I have set out. On the more substantive point, without getting into individual cases, I note the case that my hon. Friend the Member for Basingstoke made and I appreciate why he raised it, but he will also recognise why I cannot comment on specific instances of CPO use.

On the general principle of the Bill, I will say a couple of things to the shadow Minister. First, we are not removing the ability for landowners and occupiers to claim for a basic occupier’s loss payment. The Government consider it necessary to rebalance how loss payments are allocated between owners and occupiers to ensure—this is the guiding principle—that those who experience the most level of disruption and inconvenience caused by compulsory purchase are compensated fairly.

The shadow Minister pushed me to reassure him and to go away and reflect to ensure that the system has equal parity. We already have a two-tier system in place; there are differing rates for tenants and landowners. All we are seeking to do through this clause is rebalance the loss payment compensation in favour of occupiers for the reasons that I have given. Landowners and occupiers can still claim for loss payments in addition to claiming compensation for the market value of their land, disturbance costs and other reasonable costs incurred because of a CPO, such as legal and other professional fees.

We may have a principal difference of opinion here; however, on the substantive point, although we have a two-tier system already, we think that it is right to rebalance that two-tier system and weight it slightly more in favour of occupiers of land so that they are entitled to the higher amount of 7.5%, and owners of land to the lower amount of 2.5%. We think that is right, and for that reason, we will not be able to accept new clause 52.

Question put and agreed to.

Clause 88 accordingly ordered to stand part of the Bill.

Clause 89

Home loss payments: exclusions

Question proposed, That the clause stand part of the Bill.