Outline Webinar: Compulsory Purchase - Will changes boost growth?

In this edition, Trevor Ivory (Partner) and Sophie Kelly (Partner) consider the compulsory purchase order (CPO) system and whether recent changes to legislation increase its usefulness as a tool for growth. They consider whether government initiatives actually simplify the CPO system or just add additional complexity.

 

The session covers:

- Innovative ways CPO powers are being used, eg to bring formerly privatised services back into public ownership.

- Changes to the CPO system in the Levelling-Up and Regeneration Act 2023 (LURA) including:

• Conditional confirmation of the CPO.  This allows CPO powers to be conditional on securing eg funding or further planning requirements where there is adopted policy backing or master plan for the scheme. This supports the growth agenda as it allows for CPO confirmation where there are further steps to be taken, without time running on the use of CPO powers.
• Certificates of Appropriate Alternative Development (CAADs) – the LURA has changed the provisions relating to CAADs to:
  • Require the applicant to list the appropriate alternative development that the CAAD should include, rather than the authority having to work this out. 
  • Allow authorities to grant a CAAD for less but not more development than applied for. This might drive down the number of CAAD appeals and reduce the cost to the public purse.
  • Change the CAADs cost regime, which makes clear that the costs of CAADs and CAAD appeals will not form part of CPO compensation. This brings this more in line with a landowner having to bear the costs to secure a planning permission.
  • Require a CAAD to be in place to be able to claim any “hope value” for compensation
• Changes to limit compensation to existing use value and remove “hope value” from any development value of land in CPO compensation. This involves a direction under s14A Land Compensation Act 1961 being attached to a CPO for some limited forms of CPO eg housing (where generally delivering affordable housing) which would remove any compensation for “hope value”.  This would also remove the possibility of any application for a CAAD.  This requires an additional suite of CPO documents so that the s14A direction can be severable at confirmation.   
• Flexible implementation periods which allow extension of vesting dates and more flexibility for exercise of powers.

- Proposed changes in the Planning and Infrastructure Bill 2025 including to:

• Increase the types of CPO that can apply to exclude hope value to CPOs which benefit parish or community councils.
• Provide temporary possession of land for highway CPOs only. There is no indication that the temporary possession powers introduced in the Neighbourhood Planning Act 2017 will be brought into force. This is a missed opportunity, particularly in light of the current need to upgrade the national electricity grid.
• Further flexibility for implementation periods to allow vesting of land earlier, allowing earlier delivery.

 

Cases discussed in the session are:

• Secretary of State for Transport v Curzon Park Ltd and others [2023] UKSC 30: Secretary of State for Transport v Curzon Park Ltd & Ors [2023] UKSC 30 (10 August 2023)
• Quintain City Park Gate Birmingham Limited v SoS for Transport [2025] UKUT 312 Quintain City Park Gate Birmingham Ltd v Secretary of State for Transport [2025] UKUT 312 (LC) (26 September 2025)

Trevor Ivory
Partner

Sophie Kelly
Partner