Baroness Taylor of Stevenage (Lab)

My Lords, I am grateful for that very interesting debate on a wide-ranging set of issues in the Bill. There are a number of amendments in this group relating to compulsory purchase. I understand noble Lords’ concerns about that subject as well as the other issues raised in this group. I hope noble Lords will understand that, out of respect to you, these require a fuller response than I would otherwise have given at this late hour, because I think it important that I respond to the points that have been made. Amendment 238A, tabled by the noble Lord, Lord Meston, relates to compulsory purchase compensation rules and home loss payments. The amendment would ensure that homeowners still receive home loss payments, even where they have failed to take action required by an improvement notice or order served on them, if that failure is due to the person’s poor health or other infirmity, or their inability to afford the cost of the action required. A home loss payment is a separate payment made to a person to recognise the inconvenience and disruption caused where a person is displaced from their home as a result of a CPO. It is an amount paid in addition to compensation for the market value of a property subject to a CPO. Under current provisions in the Land Compensation Act 1973, where property owners have failed to comply with notices or orders served on them to make improvements to their land or properties, their right to basic and occupiers loss payments is already excluded. As mentioned in the previous debates on this issue, there are, however, currently no similar exclusions for home loss payments, which is an inconsistency. Clause 105 of the Bill amends the Land Compensation Act 1973 to apply this exclusion to home loss payments. Where the exclusion of a home loss payment applies, owners would still be paid compensation for the market value of their property, disturbance compensation and other costs of the CPO process, such as legal or other professional costs. Clause 105 does not prevent these other heads of compensation or costs being claimed. It will be for local authorities to decide whether it is appropriate to serve an improvement notice or order, taking into account the circumstances of the property owner. Furthermore, individuals are able to challenge improvement notices or orders served on them by local authorities, and Clause 105 does nothing to interfere with this right. The provision introduced by Clause 105 will lower local authorities’ costs of using their CPO powers to bring substandard properties back into use as housing where there is a compelling case in the public interest, and this will enable more empty properties to be used as family homes and ensure that the compensation regime is fair. Amendments 238ZA to 238ZC tabled by the noble Lord, Lord Lucas, would reform the Acquisition of Land Act 1981 and constrain acquiring authorities in the type of local newspaper which notices of the making and confirmation of CPOs must be published in. The type of local newspaper would have to meet certain criteria. As mentioned in previous debates, the legislation already requires authorities to publish notices in newspapers circulating in the locality of the land included in the relevant CPO, but it does not prescribe the type of local newspaper. As introduced by the Levelling-up and Regeneration Act, CPO notices are also published on the acquiring authorities’ websites. The purpose of this change was to modernise the CPO process to ensure that local people are fully informed. I agree with the comments made by Peers in the debate on these amendments that there are significant costs associated with publishing newspaper notices, and we therefore have to be mindful of adding new burdens to already hard-pressed local authorities. That is why the Government have introduced Clause 107 in the Bill. The purpose of Clause 107 is to simplify the information required to be published in CPO newspaper notices, to reduce administrative costs and to improve the content of such notices. The amendments would also increase the complexity of the CPO process. Amending the existing requirement by stipulating in primary legislation a certain type of local newspaper would create unnecessary confusion and uncertainty, make it more difficult for authorities to navigate the process and increase the potential risk of legal challenges, resulting in additional costs, and in delay in decision-making and in the delivery of benefits in the public interest. I reassure the noble Lord that DCMS has committed to a review of statutory notices as part of the local media strategy. I, for one, really welcome that; it is very much time we did it. It is important that a coherent and co-ordinated approach be taken to this issue, rather than picking it up piecemeal. For these reasons, while we agree with the intention behind the amendments, I hope noble Lords will not press them. Amendments 242 and 243, tabled by the noble Lord, Lord Roborough, relate to compulsory purchase compensation. The amendments would repeal Section 14A of the Land Compensation Act 1961, which provides the power for CPOs to be confirmed with directions removing hope value, where justified in the public interest, for certain types of schemes. They also seek to omit Clause 107 from the Bill, which proposes to expand the direction power to CPOs made on behalf of town and parish councils for schemes that include affordable housing and to make the process for determining CPOs with directions more efficient.