High Speed 2 Compensation

Michael Fabricant Excerpts

Thursday 18th January 2024 Commons Chamber

[Theo Clarke]

Let me make some progress and I will give way in a few minutes.

I want all those seeking compensation to know that they have not been forgotten. I am speaking up for them all today, to ensure their views are heard at the highest levels of Government. Since being elected as the Member for Stafford, I have raised the issue of HS2 compensation six times in this House—six times—and I have still not had all of my outstanding local claims resolved. That is not acceptable when HS2’s behaviour towards my residents has been shocking. In addition, I have contacted numerous relevant Ministers and spent hundreds of hours working on the issue, visiting affected constituents and advocating for them.

My first piece of casework as a new MP involved a constituent who experienced the most awful mental health crisis because of the stress of the compensation process. I thank my right hon. Friend the Member for Pendle (Andrew Stephenson), who as a Rail Minister worked constructively with me on that case. I appreciate, too, that the new Minister, my hon. Friend the Member for Bexhill and Battle (Huw Merriman), has also met me recently to discuss these issues.

When the Prime Minister announced back in October last year that the phase 2 of HS2 north of Birmingham would be cancelled, I welcomed it as I have long believed that HS2 is a folly. In November the Prime Minister stated that

“we are committed to fair treatment for people affected by the changes”.—[Official Report, 15 November 2023; Vol. 740, c. 642.]

While I applaud the Prime Minister’s sentiments, there should absolutely be fair treatment for all those affected by the changes, so today I ask the Minister to ensure that HS2 Ltd pays compensation fairly. That is the crucial question made even more pressing in light of the Secretary of State’s comments back in November when he said he thinks that those affected by HS2

“have been properly compensated according to the law”.

I am sorry to say that that is not the case. I will go into more detail about why there has not been proper compensation in several instances.

When the HS2 route was announced over a decade ago, the value of property and land along the route immediately dropped. The land and properties had become blighted, and we had to set up a very complex compensation system. Those going through the process were advised to hire private agents to assist them through the negotiating process, but I have heard from numerous people that the complexity of the process has meant that they were offered far smaller sums in compensation than the property was worth because of HS2. This process is not only complex but also extremely slow and I am now being told those living along the cancelled phase 2 route who wish to repurchase their property are doing so at a far higher price. This is clearly unacceptable. Why on earth should we be penalising residents who have already been forced to sell their property and land due to the Government building a railway line through their homes?

[Michael Fabricant (Lichfield) (Con)]

I have a constituent called Siân Froggatt, and she had a compulsory purchase order made against part of her farm, involving land that is the only way she can access her farm. Three times she has petitioned HS2 to buy it back, but it says no, and the land will now go on to the open market. How can that be right—I hope the Minister will address this—when the railway line will not even be going alongside? She is willing to pay back the money for her land that was compulsorily taken off her.

[Theo Clarke]

My hon. Friend makes an extremely important point, and I agree with everything he said. I will give an example from a constituent of mine in a similar situation. Andrew Collier is a farmer in Stafford farming 650 acres. HS2 purchased just over half his land, and some of that land was earmarked for utilities. The land was taken before harvest time, and he asked HS2 Ltd for permission to harvest his crop. HS2 said it would allow him to do that, so the crop was harvested, but then HS2 Ltd gave the crop to someone else and did not pay him for it. Mr Collier applied for compensation, hoping that it would swiftly arrive. Of course, that did not happen.

Instead, Mr Collier waited for two and a half years for HS2 to compensate him. I emphasise that to the Minister. Even now, he is still owed hundreds of thousands of pounds to cover two years of lost harvests and other outstanding claims. He tells me that two members of his family who worked on the farm have now had to leave, because the remaining farmland is too little for them to work on. Due to the compulsory purchase of his land and the long delays in receiving compensation, he told me in his surgery appointment that his farm is now no longer financially viable. Compounding those issues, his sacrifice is now seemingly in vain, because HS2 phase 2 has been cancelled and the land is lying fallow.

That example is why this debate today is so important for raising this issue. There is a fundamental lack of transparency and fairness in this entire process, and I believe it is causing real harm to my constituents. How HS2 Ltd deals with compensation appears to be completely divorced from practical realities on the ground.

Another example is a local golf club, the course of which is in the middle of the countryside in my constituency. Club members were devastated when they heard that the HS2 route would cut straight through the middle of it. What is to happen now? Similarly, my constituents Jean and Trevor Tabernor own a farm. HS2’s route meant that their farm would be spared, but their farmhouse was demolished. Their new farmhouse is nearly completed, and they have been seeking the last instalment of money to finish the work. As we all would expect, that needs to be finalised as soon as possible so that they can complete the construction of their home. However, they are facing delays, and now that the line has been cancelled, HS2 is trying to place restrictive clauses on them “in perpetuity”, just for my constituents to receive what they are owed. Those clauses are clearly so that HS2 can maximise the value of its assets. HS2 Ltd is literally the only thing standing between them and their new home. Again, I ask the Minister: what will happen to resolve that? It is affecting people’s lives and we simply cannot wait any longer for an answer.

I turn to businesses affected and, in particular, how unsuitable the compensation process is for farmers. In our recent meeting, my hon. Friend the Minister recognised that there are specific issues relating to farmers. I note that in his response to my hon. Friend the Member for Buckingham (Greg Smith), he publicly stated that

“of the land that HS2 has, about 81% has been let back out to be able to be utilised…I want to make sure that we can better understand from the farming community what can be done with the land that is no longer needed”.

I thank the Minister for those words. I know he has met the National Farmers Union, as indeed have I in Staffordshire, and others to better understand these issues.

The point that I wish to make is that if unused land is not preserved in its state on the day before farming ended, it will start slowly to deteriorate. For cropland in particular, that means that the land being returned to farmers will have to be rehabilitated, currently at the farmer’s expense. When we consider farmland, it is clear that the compensation process is causing major financial issues by depriving farmers of the land that they farm and their ability to forward plan.

I also have examples of constituents who had not yet reached an agreement with HS2 Ltd when the Prime Minister made his announcement. May I ask the Government not to forget about those residents, who also need to have their compensation resolved?

On how HS2 Ltd proposes to dispose of phase 2 land, following the cancellation of phase 2 it has consistently told residents and business owners that it must act to ensure value for money for taxpayers. As a Conservative, I support that in principle, but value for money in this context appears to mean short-changing those from whom it has purchased land and property. The issue with the proposal is simple: HS2 Ltd is focusing purely on ensuring that it receives the highest price for the land and the properties it has compulsorily purchased, but there appears to have been little thought given to those whose lands have been taken off them and wish to have them back. The NFU has highlighted the issue and is calling for a simpler and cheaper process for returning land; I very much support that.

As part of the process, most property and landowners who had their land compulsorily purchased will be offered the right of first refusal under the Crichel Down rules. However, the value of the lands now will naturally be higher than when it was blighted, and they will also be higher because land and property prices have increased in general. Farmers in particular, and all those affected, tell me that they are having to buy back their own land at a far higher cost. That is unfair. I would like the Minister to look at that again. If the right to first refusal is not taken, what will happen to that land and property? Someone will purchase it and, particularly with farmland, there is an additional danger that developers and land bankers might be keen to buy it, which would completely transform the make-up of former rural communities.

There has been a serious lack of transparency from HS2 throughout all this. I was shocked to read recently that the chief executive of HS2 Ltd revealed that the cost of phase 1 has already increased by £10 billion to £66.6 billion—what a horrific waste of taxpayer money.

Finally, I raise the importance of the Handsacre link, which would bring HS2-compatible trains to Stafford. It was advertised as the reward for the people of Stafford for enduring so many years of issues associated with the project. It would ensure that phase 1 is completed, and a lot of the works required to construct it are under way. I raised the rail link previously, in April last year, when I was assured by the Secretary of State for Transport that the works would continue to progress, but I hear rumours that it is to be cancelled. That would be not only a betrayal of my constituents and a waste of the time and resources put into the construction that has already been completed, but—this is a key point—a breach of the legislation that specifies that it must be built. Will the Minister reassure my constituents that the Handsacre rail link will be completed?

This debate is important because my constituents are still living in uncertainty. The processes surrounding HS2 compensation are flawed, and HS2 Ltd continues to behave disgracefully. Finally, may I invite my hon. Friend the Minister to visit me in Stafford to talk directly to my constituents and see at first hand how the delays and the lack of fair payments is affecting them, and ask him to commit today to doing something about that? HS2 compensation must finally be resolved.

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[Andrew Bridgen (North West Leicestershire) (Ind)]

I commend the hon. Member for Stafford (Theo Clarke) for securing this debate.

The motion states:

“That this House calls on the Government to provide compensation to people who have been affected by the construction of HS2.”

I take a bit of exception to the word “construction”. There has been a great deal of cost and a great deal of injury, especially for the taxpayer. In my constituency, 22 miles of which have been affected by blight for more than a decade, there is certainly plenty of injury and need for compensation, but there has never been any actual construction.

As the House knows, HS2—the second project of the high-speed rail system—was initiated by the Labour Government before the 2010 election. I think it was Lord Adonis’s little pet project, which he formulated on the back of a fag packet as a gimmick for the Labour manifesto, but unfortunately George Osborne picked it up and ran with it.

[Michael Fabricant]

Did the hon. Gentleman know that before Lord Adonis got his grubby hands on it, a design for HS2 was made by Arup? HS2 would have connected with HS1, and would have gone into major transport hubs such as Birmingham New Street and Manchester Piccadilly. It would have been possible to travel directly from Manchester Piccadilly to France without any changes at all, and do you know what? It would have been cheaper as well, because there would have been no tunnelling through the Chilterns.

[Andrew Bridgen]

If we were to debate the many failings of HS2, we would need more than the time available today. That will be for another debate, and I have no doubt that the Government have learned lessons, as they always do, but they will have been very expensive lessons for the taxpayer. HS2 is the white elephant that got ever bigger on taxpayers’ money. I opposed the project before it even started. I voted and spoke against it at every opportunity for a decade, but the elephant got ever larger.

My constituents let out a collective sigh of relief when phase 2b was finally dispatched. Today’s debate is about compensation, which is defined as an award, normally money, paid in recognition of loss, suffering and injury. Although my constituency did not see any HS2 construction, we certainly had plenty of loss, suffering and injury. We had 10 years of blight, with an area the width of two football fields, running the whole length of the constituency—22 miles—being sterilised.

Countless houses were never built and at least one factory, at the Lounge coal washing site, had to be cancelled—that factory would have created 1,200 jobs. We have had this blight for 10 years. My constituency is fortunate to have the highest economic growth in the country, but that economic growth and prosperity would have been far greater without the blighted land running through the middle of the constituency for more than 10 years.

What compensation can the Minister offer my constituents? Some of them went to their grave, and the biggest worry in their life was that HS2 was supposed to be going through their back garden. I reassured them that it was never going to happen. Despite all the bull and bluster from the Government, it was always going to run out of money. When the route was announced in 2013, I said it was going to end up costing over £100 billion —it is in Hansard—and the House laughed. It was right to laugh, because it was not £100 billion, was it? It was £160 billion at its peak.

The hon. Member for Lichfield (Michael Fabricant) is right that the project was supposed to move people seamlessly around the country. As the Government could never afford to get HS2 into city centres because of its burgeoning costs, they quickly ended up aiming to move people from nearly London to nearly Birmingham. If phase 2 had proceeded, it would have gone to nearly Manchester. I do not know anyone who wants to go from nearly London to nearly Birmingham, but the project had to continue.

HS2 has blighted my North West Leicestershire constituency, but I want to talk about one community in particular. The village of Measham was the most affected settlement on the planned route. Nowhere south of Measham had the number of houses and businesses that would have been disrupted, without any mitigation. Knowing it is one of the most deprived communities in my constituency, we had a regeneration plan to work with a fantastic company called Measham Land, through which 450 desirable new houses were going to be built on wasteland in the middle of the village. Working with the Ashby Canal Trust, it was going to fund regeneration projects, including two aqueducts, to bring the canal back to Measham, with a café culture around a large basin at the end of the canal system where people could bring their longboats. There was going to be huge investment in the village until HS2 was announced.

The route went straight through the middle of the Measham Land site. The regeneration of Measham has been delayed for 10 years. The people of Measham have suffered loss and injury, but where is the compensation? Okay, the regeneration will now go ahead, but it is 10 years late. The project would have been completed by now. We have seen that all along the route, not just in my constituency.

Who else has been injured? I will declare an interest: I am probably the only Member of Parliament who had to sell their house to HS2—a house that I bought in 2011. It was a substantial Georgian rectory with outbuildings and 14 acres of grounds, and I was forced by a judge to sell it under the extreme hardship scheme. I sold it in 2015 to HS2. Being a Member of Parliament, I thought, “I can’t deal with HS2 myself, so I’ll employ some consultants to deal with it, so that it’s an arm’s length transaction.” They charged me £25,000. It took 18 months, and I went through the system. I explained to the Government afterwards how HS2 has swindled everybody along the line with its property prices, and I will explain to the House how it is done.

It appears to be a transparently fair system, but I can assure hon. and right hon. Members that it most certainly is not, given the psychology behind it. Everybody along the whole route is presented with the same options. If HS2 wants to buy a property or someone has to sell their property—whether it is land, a factory or a dwelling—for various reasons, they will be offered a list of 10 valuers by HS2. The valuers will be mainly London estate agents, of whom the seller will have no knowledge. They may know the names—some of the very big estate agencies are on the list of 10 valuers—but it will be dealt with by the London offices, with which people in the midlands or the north are unlikely to have ever had any contact. They will be asked to choose one of the valuers to value their property, and HS2 will choose another, which sounds pretty transparently fair. They will both come to the property, land or factory to do an valuation. If the valuations are within 10% of each other, HS2 will say, “Let’s split the difference and call that the valuation.”

On paper, that sounds very fair, but think about the psychology of it. Those 10 valuers are the valuers for the whole route. They will only ever work for an individual who chooses them at random, because no seller has any knowledge of them whatsoever—it is a purely random choice. By choosing a valuer, someone has done all they can for them; the valuer will get paid their fee from HS2 for doing the valuation. But what the valuers on the list all want to be is the valuer that gets chosen every time by HS2. Given the pressure from the burgeoning costs of the project and the evidence given by whistleblowers who have left the land procurement side of HS2, which of the valuers do hon. and right hon. Members think HS2 will choose on the next occasion: the valuer who puts in the highest price to buy my house and land from me, or the valuer who puts in the lowest price for my property and land? The fact is that the system used by HS2 was always going to drive down the land and property prices paid to those affected by the route, and it is provable that that is exactly what it did.

There have been two notable whistleblowers who have left HS2, and I have spoken to both of them over the years. A former director of HS2, Doug Thornton, was put in charge of planning and performance. He was later put in charge of a £2.8 billion project to acquire all the land and properties that were needed along parts of the route. He went back to HS2 and said, “£2.8 billion is not enough. You can’t make a budget and just say we’re going to buy all the land and buildings for £2.8 billion.” He said it was nearer £4.8 billion, but he was told that he had to buy them for that price. Does that sound like HS2 was ever paying a fair price for the properties it needed to acquire along the route?

I have also recently spoken to Andrew Bruce, who was in charge of buying land and properties for HS2 until 2016. He had told his superiors that they had never paid a fair market price for any of the land and buildings that he bought while he was there, and he was asked to shred a report that he had done on that.

The two whistleblowers suffered loss and injury as well, because I am told that they were unable to get another job in the industry after they whistleblew on the practices that they experienced in HS2. They might need some compensation as well. We should protect whistleblowers, because without them we would still have a continuation of the Horizon/Post Office scandal. I maintain that individuals and communities have been damaged by HS2, and I would be interested to know what compensation the village of Measham will get, and what we are going to do for every householder and landowner along that route, who I can prove did not get the right price.

The Minister has promised me a meeting twice in the last two months, and I still do not have a date for it. I really hope that he will come through for me. I hope that lessons have been learned by HS2 and the Government. It has been a week of scandals— Horizon/Post Office, the loan charge, HS2—and the Government have not covered themselves in glory.

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[Michael Fabricant (Lichfield) (Con)]

I thank my near neighbour and hon. Friend the Member for Stafford (Theo Clarke) for introducing this debate. We have heard a catalogue of problems from various colleagues here on both sides of the House. The sad thing is that they are not unique. They are repeated up and down the country.

When I was a Whip, I instituted a system—I am looking at my hon. Friend the Member for Rushcliffe (Ruth Edwards), who is the Whip, to see whether this system still operates—where we would look at our Members of Parliament to see how many staff they got through in a short period, because clearly there was a problem if someone could not hold on to their staff for long. We would think that the Minister or Back Bencher in question was seriously flawed in some way. How many chairmen and chief executives has HS2 gone through? It has gone through a lot, because they are flawed in a serious way; they are dysfunctional.

[Andrew Bridgen]

That is made even more amazing by the fact that they have gone through all these senior staff at HS2, and yet it is the highest paid role in the civil service.

[Michael Fabricant]

It is extraordinary, and it just demonstrates what an organisation this is—not only dysfunctional, but unfair. In an intervention, I talked about my constituent Siân Froggatt, who is not being allowed to reclaim land that was compulsorily taken from her, even though the land is now not needed because the railway is not going ahead on phase 2a. I might add that she is still waiting to be paid—waiting to be paid, and still unable able to reclaim that land.

I took the opportunity of looking at my cellphone during the debate, not because I was looking at tractors or anything like that, but because I was doing some research about the Crichel Down rules. It says on the Government’s own website that

“The Crichel Down Rules require government departments… to offer back surplus land to the former owner or the former owner’s successors at the current market value.”

It has to be offered back to the same people. Not only is it not being offered back at a reasonable price, but it is often not being offered back to the same people.

I came in at the very last moment to speak in this debate, so I will not take up a great deal of time. I will listen with interest to the Minister’s response, which I suspect might be the same as the answer he gave yesterday in a different debate regarding the Handsacre junction, which happens to be in my constituency. I ask that in these dying days of HS2—dying days in one way or another—the Government get a grip and ensure that, just we asked in the previous debate, justice is done for our constituents. The sense of justice we have in this nation extends not only to His Majesty’s Revenue and Customs, as in the previous debate, but to HS2 Limited in this one.

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[Mike Kane]

I refer to the answer I gave to the right hon. Member for South Staffordshire; that remains our position. Labour has launched an independent expert review of transport infrastructure headed by industry leader Jürgen Maier, originally of Siemens, to learn the lessons from this shambles and to ensure that we deliver transport infrastructure faster and more effectively, so that communities are not taken for a ride with nothing to show for it, as has been the case here.

In this debate we have heard just a few of the many examples of people’s lives being impacted by this Conservative HS2 scandal. It is clear that communities are still paying the price for the delays of the past decade and the chaos of the past few months.

[Michael Fabricant]

The hon. Gentleman is being very generous in giving way. Would he generously accept that, if it had not been for Lord Adonis changing the original plan, HS2 would have gone nowhere near areas such as the Chilterns? It would have gone up a completely different route and been a connected railway, and would probably have been quite worthwhile.

[Mike Kane]

I thank the hon. Member for his intervention, but seriously, after 14 years, those types of excuses are wearing extraordinarily thin, if he does not mind my saying so.

I hope the Minister will outline what is being done to address this chaos—costs are still going up after the decision in October—to ensure that those impacted receive the compensation that they deserve, as Members have well underlined, and that the same mistakes are not made again and again in future. I look forward to hearing the Minister’s remarks. Once again, I thank the hon. Member for Stafford for securing the debate and all Members who have participated.