High Speed 2 Compensation

Theo Clarke Excerpts

Thursday 18th January 2024 Commons Chamber

[Theo Clarke (Stafford) (Con)]

I beg to move,

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

I have called this debate on High Speed 2 compensation as I am concerned about how my constituents in Stafford are still being treated by HS2 Ltd, and I wish to raise their serious complaints directly with the Rail Minister and to hear what he is going to do to address them.

Since the Prime Minister made the decision to cancel phase 2 of the HS2 rail project from Birmingham to Manchester, many people, including constituents of mine, have been left in limbo, with no information about what is happening with their properties or land. This issue affects numerous constituencies and I thank the many colleagues from across the House who are here to support this important debate today, including many neighbours in Staffordshire such as my hon. Friend the Member for Lichfield (Michael Fabricant), my right hon. Friend the Member for South Staffordshire (Sir Gavin Williamson) and my hon. Friend the Member for Stone (Sir William Cash).

Today I am calling for all outstanding HS2 compensation claims to be resolved. I will set out a number of examples in my constituency that demonstrate that the issue of HS2 compensation is still a long way from being concluded and must be dealt with by the Government. Let me start by thanking the constituents who have contacted me, sharing their stories and highlighting how HS2 is deeply affecting them. Several other constituents who previously asked me to raise their case have now asked me not to mention them by name today. I am outraged to discover they have been intimidated by HS2 to do this. In one surgery appointment I was told that a constituent was told, “It would not be good for you to get your MP involved, as that would be bad for your case.” This is completely unacceptable behaviour by HS2 Ltd and I want to call it out today.

[Jim Shannon (Strangford) (DUP)]

I declare an interest, not in this case but as a farmer because I understand that HS2 has been contacted by some in the National Farmers Union on this matter. Does the hon. Member agree that to demand land from farmers and not to compensate them quickly and effectively can never be acceptable, and that if a farmer can show loss of earnings, they should receive compensation for that? I understand they currently do not.

[Theo Clarke]

The hon. Member is absolutely right, and if he bears with me, I will specifically come on to compensation to farmers and the points the NFU has raised.

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

Will the hon. Member give way?

[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.

--- Later in debate ---

[Mike Kane]

That is exactly why Labour would do it with the Mayors, with the communities and in consultation with those it would affect and impact. HS2 was going to go under my back garden—that was my interest.

[Theo Clarke]

The hon. Gentleman just said that Labour would do it. Just to be clear, can I confirm that Labour is now saying it will bring back HS2 if it wins the next election?

[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.

--- Later in debate ---

[Theo Clarke]

First, I thank the Minister for listening to the extraordinary examples we have heard this afternoon of how HS2 has behaved to our constituents.

I thank in particular my hon. Friend the Member for Lichfield (Michael Fabricant), the hon. Member for Chesham and Amersham (Sarah Green), my right hon. Friend the Member for South Staffordshire (Sir Gavin Williamson), the hon. Member for North West Leicestershire (Andrew Bridgen), and my hon. Friends the Members for Crewe and Nantwich (Dr Mullan) and for Buckingham (Greg Smith) for speaking in this debate.

I welcome what the Minister has said, that he will visit my constituency to meet affected residents, and in particular that he will write to all of us who have spoken in the debate to provide clear answers on the individual cases we have raised. It is very clear from this debate that there is still considerable uncertainty over HS2, and I welcome the fact that the Government are going to look again at resolving all outstanding compensation claims.

Question put and agreed to.

Resolved,

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