The Law Commission

PART 10

SUMMARY OF RECOMMENDATIONS

Recommendation (1) – Ministerial, and Non-ministerial body, orders

(1) The separate procedures for the authorisation of compulsory purchase orders, contained in section 2 of and Schedule 1 to the Acquisition of Land Act 1981, relating to orders made by Ministers and orders made by other bodies, should be amalgamated.

(2) The new unitary procedure should encompass two stages:

(a) "making" by the acquiring authority, and

(b) "confirmation" by the confirming authority (which will include delegated confirmation).

(3) The new unitary procedure should make special provision, in highway acquisitions, for joint consideration by the Ministers responsible for highways and for planning respectively.

Recommendation (2) – Entry for surveying purposes

(1) An acquiring authority should be entitled to enter upon land in order to carry out necessary surveys prior to the compulsory purchase order being made provided that it is considering a distinct project of real substance genuinely requiring such entry upon the land.

(2) Section 15 of the Local Government (Miscellaneous Provisions) Act 1976 should be extended to apply to all authorities which have compulsory purchase powers.

(3) The county court should have jurisdiction to control the unlawful exercise by acquiring authorities of their powers of entry for surveying purposes by restraining entry or by making entry subject to such conditions as it specifies.

(4) Section 11(3) of the Compulsory Purchase Act 1965 should be repealed and replaced by a modern provision based on, or incorporated within, section 15 of the Local Government (Miscellaneous Provisions) Act 1976.

Recommendation (3) – Legal challenge

(1) Any challenge to the validity of a decision to confirm (or to refuse to confirm) a compulsory purchase order should be made pursuant to the statutory review procedure contained in Part IV of the Acquisition of Land Act 1981, and no such challenge shall be made by way of judicial review.

(2) Any challenge to earlier stages of the compulsory purchase process (such as making the compulsory purchase order) should be by way of judicial review.

(3) Under the statutory review procedure, the High Court should be entitled in the exercise of its discretion to quash the determination of the confirming authority to confirm the compulsory purchase order as an alternative to quashing the whole order. Where the High Court makes such an order that a determination be quashed, it should be entitled to remit that determination to the appropriate authority with a direction that the authority re-consider its determination in accordance with the findings of the court.

Recommendation (4) – Procedures for implementation

(1) Implementation of a compulsory purchase order, once it has been confirmed by the confirming authority, should be effected only by notice to treat or by vesting declaration.

(2) The implementation procedure contained in section 11(2) of, and Schedule 3 to, the Compulsory Purchase Act 1965 should be repealed without replacement.

Recommendation (5) – Notice to treat

(1) An acquiring authority should be required to serve notice to treat in prescribed form on any owner of a freehold or leasehold interest in the land, any mortgagee (whether legal or equitable), any person entitled to the benefit of a contract to create a freehold or leasehold interest, and any lawful occupier of the subject land.

(2) It should not, however, be required to serve notice to treat on those holding "minor tenancies", those with the benefit of an easement or profit à prendre over the subject land, or those entitled to enforce a restrictive covenant over the subject land.

(3) An acquiring authority should be entitled, in the exercise of its discretion, to serve notice to treat in prescribed form on any person (other than those set out in (1) above) who owns an interest in, or occupies, the subject land.

(4) In section 5(2)(c) of the Compulsory Purchase Act 1965, there should be substituted reference to compensation being paid for loss incurred in accordance with the four compensation heads (as exist currently or as proposed).

(5) In section 20 of the Compulsory Purchase Act 1965, the right to compensation (and allied procedure) afforded to a minor tenant should be extended to any person holding a long tenancy which is about to expire (as defined in section 2(2) of the Compulsory Purchase (Vesting Declarations) Act 1981).

Recommendation (6) – Notice of entry

Section 11(1) of the Compulsory Purchase Act 1965 should be amended so that notice of entry (in addition to service on every owner, lessee and occupier of subject land or part of that land) shall also be affixed to a conspicuous object or objects on or near the land and the display maintained, so far as is reasonably practicable, for its period of validity.

Recommendation (7) – Unauthorised entry

Section 12 of the Compulsory Purchase Act 1965 should be repealed without replacement.

Recommendation (8) – Refusal of Entry

(1) While the procedure enabling the acquiring authority to issue a warrant for possession (under section 13 of the Compulsory Purchase Act 1965) should be retained, the warrant should be issued to High Court enforcement officers rather than to the sheriff.

(2) The costs of the warrant should be borne initially by the acquiring authority subject to recoupment from the person refusing entry. The acquiring authority should be entitled to deduct such costs from any compensation payable to that person. Where costs exceed the level of compensation payable, they should be recoverable as a civil debt.

(3) The Lands Tribunal should have jurisdiction to decide whether the sum claimed by the acquiring authority as costs of enforcement is reasonable in all the circumstances of the case.

Recommendation (9) – Distress

(1) Section 13(4) and (5) of the Compulsory Purchase Act 1965 should be repealed without replacement.

(2) Section 29 of the Compulsory Purchase Act 1965 should be repealed without replacement.

Recommendation (10) – Local land charge registration

(1) The following should become registrable as local land charges for the purposes of the Local Land Charges Act 1975:

(a) making of the compulsory purchase order; and

(b) service of notice to treat in respect of any land under section 5 of the Compulsory Purchase Act 1965.

(2) Amendment of the register, to reflect withdrawal or lapse of the compulsory purchase order or of notices being varied or ceasing to have effect, should be governed by the Local Land Charges Rules.

(3) Failure to register as a local land charge should not invalidate the order or notice, but any person adversely affected by such failure should be entitled to claim compensation for consequential loss suffered in accordance with section 10 of the Local Land Charges Act 1975.

(4) To achieve consistency of approach, ODPM should provide authorities with guidance on the desirability of attaching informal notes to the register on the current status of an order and its state of implementation.

Recommendation (11) – Time limits

(1) The powers exercisable pursuant to the compulsory purchase order should only be exercisable for a prescribed period (being less than the current period of three years) from the date on which the order becomes operative.

(2) On the expiration of the prescribed period the compulsory purchase order should cease to have effect. Section 4 of the Compulsory Purchase Act 1965 should be amended accordingly.

(3) An acquiring authority should be treated as having exercised powers by service of notice to treat or by execution of a general vesting declaration but not otherwise.

(4) A notice to treat should cease to have effect on the expiration of a prescribed period (being less than the current period of three years) from the date on which the notice to treat is served, save and insofar as it relates to land in respect of which:

(a) compensation has been agreed or awarded or has been paid or paid into court;

(b) a general vesting declaration has been executed;

(c) the acquiring authority has served notice of entry; or

(d) reference has been made to the Lands Tribunal for determination of the compensation payable.

(5) A notice of entry should not take effect until the expiry of a prescribed period from the date on which it is served, and it should cease to have effect on the expiration of a prescribed period from the date of service, save and insofar as it relates to land in respect of which entry has been made and possession taken. Where notice of entry has expired without entry being made, it should not be permitted to serve any further notice in respect of the land to which the expired notice relates.

(6) The time limits referred to in (4) and (5) above should be capable of extension by agreement between the acquiring authority and those persons owning land or interests in land.

Recommendation (12) – Limitation periods

(1) Where the acquiring authority has proceeded by notice to treat or by vesting declaration and compensation has not been agreed, the issue should be referred to the Lands Tribunal for determination:

(a) (under the existing law) within six years of the date when the claimant knew, or ought reasonably to have known, of the taking of possession of the subject land or its vesting in the acquiring authority; or

(b) (under the amended law) within three years of the claimant's date of knowledge, in accordance with the "core regime", with a "long-stop" period of ten years.

(2) Following agreement, or determination by the Lands Tribunal, of the amount of compensation payable by the acquiring authority, that amount should be recoverable by the claimant within:

(a) twelve years (under the existing law), or

(b) ten years (under the amended law)

of the date of agreement or determination as the case may be.

(3) Following payment of compensation into court by an authority, the claimant should apply for payment out within:

(a) twelve years (under the existing law), or

(b) ten years (under the amended law)

from the date of the payment into court, subject to the proviso that the court may order payment to a claimant subsequently where it is satisfied that there are good reasons for an application not having been made previously, or that there are other exceptional circumstances.

(4) Section 9 of the Limitation Act 1980 should be amended accordingly.

Recommendation (13) – Deed poll procedure

(1) If, after compensation in respect of any land or interest in land has been agreed or determined, the person entitled:

(a) refuses to accept the compensation; or

(b) fails to make out title to the satisfaction of the acquiring authority; or

(c) refuses to convey or release the land as directed by the acquiring authority,

the authority should be entitled to proceed by the "deed poll procedure" as described in this recommendation.

(2) The acquiring authority should be entitled to pay into the High Court the compensation payable in respect of the relevant land, or interest, accompanied by a description of the person or persons entitled (so far as known to the authority). The compensation so paid into court should be placed to the credit of those persons.

(3) On payment into court as above, the acquiring authority should be entitled to execute a deed poll describing the relevant land and the circumstances of the payment, and giving the names of the persons to whose credit the compensation is paid.

(4) On execution of the deed poll, all the interests in respect of which the compensation was so paid should vest absolutely in the acquiring authority, together with the right to immediate possession as respects those interests.

(5) The acquiring authority should be required to make a reference to the Lands Tribunal within the limitation period applicable for such references (or within such extended period as the Lands Tribunal may allow) for compensation to be assessed.

(6) On the application of any person claiming any part of the money paid into court, or any interest in any part of the land in respect of which it was paid into court, the High Court should be entitled to order its distribution according to the respective interests of the claimants, and to make such incidental orders as it thinks fit.

(7) The incidental provisions of section 28 of the Compulsory Purchase Act 1965 (sealing of deed polls, stamp duty, etc) should be incorporated, save for section 28(3) which should be repealed.

(8) The costs incurred in connection with a payment into court under this proposal should be borne by the authority, save as the court otherwise orders.

Recommendation (14) – Completion of purchase

(1) Where notice to treat has been served and compensation has been agreed or determined, there should be deemed (as now) to be in place a contract of sale of the subject land between the claimant and the acquiring authority.

(2) The contract of sale should be enforceable by action by either party for specific performance.

(3) The concept of a vendor's lien, in the context of compulsory purchase, should be abolished by statute.

(4) Schedule 5 to the Compulsory Purchase Act 1965 (prescribed forms) should be repealed.

Recommendation (15) – Costs of Completion

(1) Section 23 of the Compulsory Purchase Act 1965 should be repealed and replaced by a provision that the acquiring authority should pay to those persons who have incurred them all reasonable costs in connection with the completion of the compulsory purchase (so far as not covered by any other provisions).

(2) The costs incurred should be assessed by the Costs judge. This duty of assessment should remain in the High Court and not be transferred to the jurisdiction of the Lands Tribunal.

Recommendation (16) – Persons with limited powers

(1) Where the owner of any interest in the subject land has limited power to deal with that land (including disposal), the acquiring authority should be entitled to proceed by the "limited powers procedure" as described in this recommendation.

(2) The authority may apply to the Lands Tribunal for:

(a) appointment of a surveyor (selected from the surveyor members of the Tribunal) to undertake a valuation which will determine the amount of compensation to be paid in respect of the interest. When the application has been made, both the authority and the owner may submit to the Lands Tribunal (and its appointed surveyor) their own assessments of the appropriate amount payable, which submissions will be for the sole purpose of informing the valuation process;

(b) an order empowering the owner to dispose of the interest to the authority on such terms and conditions as the Lands Tribunal considers appropriate (including as to the manner of payment of the compensation).

(3) Schedule 1 to the Compulsory Purchase Act 1965 should be repealed.

Recommendation (17) – Untraced and non-compliant owners

(1) Where the owner of any interest in the subject land either:

(a) cannot be found by the acquiring authority after making reasonable inquiry; or

(b) has been found, but is unwilling to deal with the authority; or

(c) has been found, but is prevented from dealing with the authority by reason of illness, absence or other circumstance,

the authority should be entitled to adopt the "non-compliance procedure" described in this recommendation.

(2) The authority may apply to the Lands Tribunal for appointment of a surveyor (selected from the surveyor members of the Lands Tribunal) to undertake a valuation which will assess the amount of compensation to be paid in respect of the interest. When making the application, the authority may submit to the Lands Tribunal (and its appointed surveyor) its own estimate of the appropriate amount payable, which submission will be for the sole purpose of informing the valuation process.

(3) Once the assessment has been made, the authority will hold the valuation and produce it on demand to the owner of the interest to which it relates, or to any other person with an interest in the subject land.

(4) All the expenses of, and incidental to, the obtaining of the valuation shall be borne by the authority.

(5) Following assessment of compensation, and subject to (6) below, the authority may then invoke the "deed poll procedure".

(6) Where any person, claiming to be entitled to compensation paid into court under this procedure, wishes to challenge the amount of compensation assessed by the valuation:

(a) before making application to the High Court for payment of the sum paid into court, the claimant may serve notice on the authority requiring the authority to refer the issue within a prescribed time limit to the Lands Tribunal for determination;

(b) pending determination by the Lands Tribunal, the High Court may make such orders for interim payment as it thinks fit;

(c) if the Lands Tribunal subsequently determines that a further sum in compensation should be paid by the authority, the authority shall make that payment in the manner directed within a prescribed time limit.

Recommendation (18) – Omitted interests

(1) An acquiring authority should be entitled retrospectively to rectify accidental omissions relating to interests and rights by serving notice to treat and notice of entry within a prescribed time limit (or within such longer period as is allowed by the Lands Tribunal).

(2) An acquiring authority should be entitled to refer disputes over compensation to the Lands Tribunal for determination within that time limit.

(3) Compensation should be assessed by reference to the date of the original entry on to the subject land.

(4) Section 22 of the Compulsory Purchase Act 1965 should be amended accordingly (and the expression "to purchase" in subsection (1) should be clarified).

Recommendation (19) – Payments into and out of court

(1) Sections 25 and 26 of the Compulsory Purchase Act 1965 (concerning payments into court) should be replaced by a simplified procedure (applying to acquisition both by notice to treat and by vesting declaration):

(a) giving the court power, subject to rules of court, to make orders in relation to money paid into court under the statutory provisions relating to compulsory purchase, for the distribution of such money in accordance with the interests of the claimants (and to make such incidental orders as it thinks fit);

(b) allowing for payment into court by an acquiring authority of the full compensation sum where individual claimants dispute the share of that sum due to them;

(c) providing that costs incurred in connection with payments-in shall be paid by the authority, unless the court determines otherwise.

(2) Section 29 of the Local Government (Miscellaneous Provisions) Act 1976 (relating to unclaimed compensation) should be extended so that it applies to all forms of acquiring authority.

Recommendation (20) – Service of notices and publicity

(1) The present rules relating to service of notices should remain in primary legislation, supplemented where necessary by departmental guidance, subject to the following.

(2) The different statutory formulations relating to service by site notice should be made consistent.

(3) Section 11(3) of the Acquisition of Land Act 1981 should be amended to place an obligation on acquiring authorities both to display a site notice and, so far as reasonably practicable, to keep it in place for the requisite period.

Recommendation (21) – Divided land (unified procedure)

(1) There should be a single procedure whereby a person holding an interest in land which is subject to compulsory purchase by an acquiring authority can require the authority to take other land held by him which does not form the subject of the compulsory purchase. This "divided land procedure" is as described in this recommendation.

(2) If the land specified in a "notice of acquisition" (the subject land) comprises part: (a) of any building, (b) of any land attached to and used with a building, or (c) of any other land (not being agricultural land), any person who owns an interest in the land (being greater than as tenant for a year or from year-to-year and not being a long tenancy about to expire), may serve on the acquiring authority a "divided property notice" requiring the authority to purchase his interest in the whole.

(3) A divided property notice, which shall be in writing and in prescribed form, shall specify the land that the claimant requires to be purchased by the acquiring authority and shall be served by a claimant within 28 days of service of the notice of acquisition.

(4) Where a divided property notice has been served, the authority may, within two months of service:

(a) serve notice of withdrawal of the notice of acquisition;

(b) serve notice to acquire the whole of the land; or

(c) refer the matter to the Lands Tribunal for determination.

(5) If the authority fails to take any such action within two months of service, it shall be deemed to have served notice to acquire the whole of the land.

(6) A claimant who has served a divided property notice may withdraw that notice at any time before compensation under it has been agreed or determined.

(7) The Lands Tribunal, on a reference, shall determine whether:

(a) in the case of a building, the part proposed to be acquired can or cannot be taken without material detriment to the building or its use;

(b) in the case of land attached to a building, the part proposed to be acquired can or cannot be taken without seriously affecting the amenity or use of the building;

(c) in the case of other land (not being agricultural land), the part proposed to be acquired can or cannot be taken without the retained land, or any part of it, being made not reasonably capable of use for the purpose for which it was used at the time of service of the notice of acquisition.

The burden of proof shall lie with the person serving the divided property notice.

(8) In determining any such reference, the Lands Tribunal shall:

(a) take into account not only the effect of the taking of part but also the use to be made of that part and, in a case where the Part 1s proposed to be acquired for works or other purposes extending to other land, the effect of the whole of the works and the use to be made of the other land; and

(b) determine the area of the property which the acquiring authority ought to be required to take (and the notice to treat or vesting declaration shall be construed accordingly).

(9) Sections 53 to 57 of the Land Compensation Act 1973 (agricultural land) should continue to apply insofar as they are not affected by the above provisions.

(10) Sections 8(3) (small parcels) and 19 (apportionment of rent) of the Compulsory Purchase Act 1965 should continue to apply in updated form.

(11) Section 8(2) of the Compulsory Purchase Act 1965 should be repealed.

Recommendation (22) – Interference with private rights

(1) Where an authority undertakes an operation on or uses land for a statutory purpose, and that land is subject to easements or other private rights, it should be presumed that such rights will be overridden, unless the authority elects to extinguish the rights (or any of them) over all or part of the land.

(2) Where rights over land are overridden, the erection, construction or maintenance of any building or work on land or any use of land, whether done by the authority or by a person deriving title under it, should be deemed lawful if done in accordance with planning permission and for the statutory purpose, notwithstanding interference with the rights.

(3) Where an authority elects to extinguish any right, it should be required to serve "notice of election" on every qualifying person on or before the first notice date, describing the right and its extent.

(4) On receipt of a notice of election, the qualifying person should be entitled either to:

(a) accept the notice; or

(b) serve on the authority "notice of objection" to the proposed extinguishment within a prescribed period, which objection will be determined by the Secretary of State as part of the order confirmation process.

(5) Notice of objection should be able to be upheld by the Secretary of State only on the ground that other land held by the qualifying person which benefits from the right will no longer be reasonably capable of being used for the purpose for which it is currently being used by that person.

(6) Where notice of election is accepted or notice of objection is not upheld, the authority should proceed as though the right in question was an interest entitling the owner to notice to treat; and, on completion of the purchase or on prior taking of possession by the authority, the right described in the notice of election shall be extinguished.

(7) Where any right is overridden by an authority, and work on, or use of, the land has commenced (whether by an authority or a person deriving title under it), the owner of the right should be entitled to serve on the authority "notice of extinguishment" requiring the authority to acquire the right (or part of the right) and extinguish it.

(8) Section 237 of the Town and Country Planning Act 1990 should be amended so that immunity extends to the use of "any building or work" (as well as to erection, construction, etc), and to any acquiring authority acting within its statutory powers for a statutory purpose, in accordance with such permissions or consents as are required.

Recommendation (23) – Minor tenancies

(1) The procedure for dealing with minor tenancies, and long tenancies about to expire, applicable where the acquiring authority is proceeding by vesting declaration (and contained in the Compulsory Purchase (Vesting Declarations) Act 1981), should be retained without amendment.

(2) The law should be amended so as to ensure that analogous procedures, and protections, apply where the acquiring authority is proceeding by notice to treat under the Compulsory Purchase Act 1965. In particular:

(a) where the authority acquires land, it should be subject to any existing minor tenancy and any long tenancy which is about to expire;

(b) the authority should not be obliged to recover possession immediately on acquiring the land, and it should be entitled to allow such tenancies to expire, or to serve notice to quit in order to terminate them; and

(c) if the authority wishes to terminate such a tenancy before it is entitled to do so under the tenancy agreement or otherwise, it should serve notice to treat, and notice of entry, on the occupier(s) of any of the land in which the tenancy subsists.

Recommendation (24) – Mortgages and rentcharges

The procedure for dealing with mortgages and rentcharges in the subject land (contained in the Compulsory Purchase Act 1965) should be retained in its current form, subject only to restatement in modern language in any future consolidation.

Recommendation (25) – Public rights of way

Section 32 of the Acquisition of Land Act 1981 should be retained in its current form and should not be amended.

Recommendation (26) – Abortive orders

Liability prior to making a compulsory purchase order

(1) Subject to the law relating to blight, an acquiring authority should be under no liability to pay compensation until, and save and insofar as, a compulsory purchase order has been made, and compensation should not be payable by the authority in respect of any loss or expense incurred before the date on which notice of the order being made is first published ("the first notice date").

Withdrawal of orders by the acquiring authority etc

(2) A compulsory purchase order should be capable of being withdrawn by an acquiring authority (by giving notice of withdrawal to those persons entitled to receive notice of making the order) at the following times:

(a) from the first notice date until the date on which it is submitted to the confirming authority for confirmation;

(b) from the date on which notice of its confirmation is first published until the date on which notice to treat is served or the date on which a vesting declaration is executed.

(3) An acquiring authority should be entitled to withdraw from the purchase of any subject land for a period of six weeks from the date on which a claim for compensation is made or (where no such claim is made) from the date on which compensation is determined by the Lands Tribunal.

(4) An acquiring authority should also be entitled to withdraw from the purchase of any subject land as permitted by section 8(1) of the Compulsory Purchase Act 1965, section 54(3) of the Land Compensation Act 1973, section 12 of and Schedule 1, para 4, to the Compulsory Purchase (Vesting Declarations) Act 1981, and any other statutory provision permitting withdrawal.

Deemed withdrawal of orders etc

(5) A compulsory purchase order should be treated as withdrawn:

(a) where the acquiring authority fails to submit the order to the confirming authority for confirmation within the prescribed time limit;

(b) where the confirming authority refuses to confirm the order; and

(c) where the order is quashed by the High Court.

(6) An acquiring authority should be treated as having withdrawn from the purchase of any subject land:

(a) where, after publication of the notice of confirmation, the acquiring authority fails within the prescribed time limit to serve notice to treat or to execute a vesting declaration;

(b) where a notice to treat ceases to have effect pursuant to section 5(2A) or section 5(2B) of the Compulsory Purchase Act 1965;

(c) where, after service of notice of entry, the acquiring authority fails to enter on and take possession of the land before the notice ceases to have effect.

Notice of withdrawal

(7) Where an acquiring authority withdraws a compulsory purchase order as set out in (2) above, the acquiring authority should be required to give notice of withdrawal to all qualifying persons (as defined in section 12 of the Acquisition of Land Act 1981, as amended).

(8) Where a compulsory purchase order is deemed to be withdrawn as set out in (5) above, the acquiring authority should be required to give notice of withdrawal to all qualifying persons as soon as is reasonably practicable.

(9) Notice of withdrawal should be in prescribed form and should set out the right to claim compensation.

(10) Once an order has been confirmed, notice of withdrawal may relate to the whole of the subject land or to such part as corresponds to the whole of an individual plot held by a qualifying person.

Compensation liability on withdrawal

(11) On withdrawal of an order, or on withdrawal from the purchase of any subject land, the acquiring authority should be liable to pay compensation to any qualifying person in respect of any loss or expenses caused by the making of the order or the withdrawal of the order or the withdrawal from the purchase as the case may be.

(12) The amount of any compensation should be determined (in default of agreement) by the Lands Tribunal, and assessed in accordance with the principles relating to consequential loss set out in the Compensation Code.

(13) Compensation should carry interest at the rate prescribed under section 32 of the Land Compensation Act 1961 from the date of notice of withdrawal until its payment.

Exclusions from compensation liability

(14) Where the order is withdrawn as at the time referred to in (3) above, compensation should not cover any loss or expense incurred after the time when, in the opinion of the Lands Tribunal, a proper notice of claim should have been delivered by the claimant.

(15) Compensation should not be required to be paid where a statutory notice which had been served in relation to the subject land under any of the following provisions had become operative, and had not been complied with, at the first notice date:

(a) Sections 189 and 190 of the Housing Act 1985 (requirement to repair unfit dwelling and requirement to repair dwelling in disrepair);

(b) Section 215 of the Town and Country Planning Act 1990 (power to require proper maintenance of land);

(c) Section 48 of the Planning (Listed Buildings and Conservation Areas) Act 1990 (repairs notice prior to compulsory acquisition of listed building).

(16) Compensation should not be required to be paid where a statutory order has been served in relation to the subject land under sections 264 or 265 of the Housing Act 1985 (closure and demolition of unfit dwellings) and has not been quashed on appeal.

(17) Compensation should not be required to be paid where, following service of a blight notice under section 150 of the Town and Country Planning Act 1990, notice to treat is deemed to have been withdrawn under section 156(2) of that Act.

(18) The Secretary of State should be empowered by regulations to add to or amend the list of exclusion circumstances.

Withdrawal of notices to treat

(19) Where a notice to treat has been served by an acquiring authority, that notice should be entitled to be withdrawn unilaterally (by notice of withdrawal) only in the circumstances set out in section 31(1), (2) of the Land Compensation Act 1961, or in (21) below, or by agreement with the recipient of the notice.

(20) Where a notice is withdrawn in such circumstances or by agreement, the order should remain valid (and further notices may be served) until the expiry of the period set out in section 4 of the Compulsory Purchase Act 1965.

(21) Where, in the case of land proposed to be divided, notice to treat in respect of part only of the subject land has been served by the acquiring authority, and the recipient of the notice has within the statutory time limit to be prescribed served notice of objection to severance under section 8(1) of the Compulsory Purchase Act 1965, the authority should have the right either:

(a) to withdraw the notice to treat, subject to paying compensation for any loss or expenses occasioned to the recipient by the giving and withdrawing of the notice; or

(b) to amend the notice to treat to cover the whole of the subject land (in which case compensation will be payable in the usual way for the land acquired).

(22) The provisions relating to withdrawal of notice to treat deemed to have been served under section 54(2), (3) of the Land Compensation Act 1973 (severance of agricultural land) and under section 12 of the Compulsory Purchase (Vesting Declarations) Act 1981, and Schedule 1, paragraph 4(1)(a) thereto, should continue to apply, and compensation should be payable for such withdrawal.

(23) Where notice is withdrawn under section 31(1), (2) of the Land Compensation Act 1961, the acquiring authority should be liable to pay compensation to the person to whom notice was given for any loss or expenses occasioned to him by the giving and withdrawal of the notice (in accordance with section 31(3), (4) of that Act).

(24) Such compensation should be assessed on the same basis and subject to the same rules and procedures as that applicable under (11) above.

(Signed) ROGER TOULSON, Chairman
HUGH BEALE
STUART BRIDGE
MARTIN PARTINGTON
ALAN WILKIE

STEVE HUMPHREYS, Chief Executive

7 October 2004