Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, with reference to her Department’s open consultation entitled proposed reforms to the National Planning Policy Framework and other changes to the planning system, published on 2 August 2024, if she will make an assessment of the potential merits of extending compulsory purchase compensation rules to allow local authorities to procure land for use as (a) parks and (b) playing fields.

Local authorities have powers under the Local Government Act 1972, Town and Country Planning Act 1990 and Education Act 1996 to compulsory purchase land for parks and playing fields providing there is a compelling case in the public interest. Compensation paid will reflect open market value. Under compensation rules, any increase or decrease in value caused by the compulsory purchase must be discounted from the open market value of the land taken.

Local authorities acquiring land under the Education Act 1996 can seek directions from the Secretary of State to remove ‘hope value’ from compensation where justified in the public interest. They can also seek directions to remove hope value when acquiring land under the Local Government Act 1972 or Town and Country Planning Act 1990 providing the use of the land will include provision of affordable housing. For example, a mixed-use scheme including mixed tenure housing, parks, open spaces.

Further reform of compulsory purchase compensation rules will be included in the forthcoming Planning and Infrastructure Bill. Announcements on the timing of that Bill will be made in the normal way in due course.