Compulsory Purchase – proposed reforms

The Government’s consultation “Compulsory Purchase Process and Compensation Reforms” issued on 19 December 2024 seeks views on proposals aimed at reforming the compulsory purchase process to make it “cheaper, quicker and fairer”.  

Whilst the introductory text to the consultation makes explicit and frequent reference to the delivery of housing, (presumably in aid of the Government’s ambitious housing targets), several of the proposed reforms are relevant to the promoters of energy projects requiring the compulsory acquisition of land – these are considered below.  

1. Introduction of temporary possession powers

The consultation acknowledges the importance of temporary possession in relation to developments facilitated by CPO for both storage and construction. This is particularly relevant in relation to linear energy schemes (such as the installation of underground electricity cables required to connect offshore wind farms to the Grid, and the installation of new or replacement gas pipelines) where the land required for the retention and maintenance of newly developed assets is often far reduced in comparison to the land required to facilitate the construction of the same. 

Whilst there are temporary possession powers available for schemes consented by either a Development Consent Order or a Transport and Works Act Order (under the Planning Act 2008 and the Transport and Works Act 1992 respectively), the same cannot be said for schemes that do not qualify as Nationally Significant Infrastructure Projects which instead require to be consented under the Town and Country Planning Act 1990, with associated compulsory purchase orders being promoted under other legislation such as the Electricity Act 1980 and the Gas Act 1986 in conjunction with the Acquisition of Land Act 1981. 

The Government proposes to utilise as yet unimplemented powers in the Neighbourhood Planning Act 2017 to extend temporary possession powers for use of and entry onto land to non-DCO schemes for which compulsory purchase orders are promoted under other legislation, such as the Electricity Act 1980 and Gas Act 1986, with appropriate drafting to ensure that there's no conflict with similar powers contained in the 2008 and 1992 acts. The Government hopes that these proposals will contribute to speeding up and simplifying the consenting procedure for major infrastructure.  

If implemented, this would greatly assist promoters relying on compulsory acquisition powers under the ALA and other regimes by streamlining the current process, which is reliant on either securing an agreement with the relevant landowner or acquiring permanent rights in relation to (for example) ecological surveys or construction, with a letter of assurance issued to the landowner to confirm that such powers will only be utilised for a finite amount of time.  

2. Expedited notice process for vesting of interests in land

The consultation proposes an expedited process for vesting interests in land, reducing the current minimum notice period of 3 months to 6 weeks in certain circumstances - such as when dealing with unoccupiable or vacant properties, where no notices have been responded to or objections lodged by the owner or occupier of land, or by way of an agreement between the promoter and the relevant landowner and/or occupier. The Government considers this would allow for the public benefits arising from a CPO to be delivered without unnecessary delay, whilst ensuring that the land does not vest prior to the expiry of the period in which a judicial review challenge may be lodged.

This would serve to speed up the CPO process and reduce delays, but seemingly only in some instances. Where a promoter seeks to acquire a large area of land, or land for a linear scheme, the land in question is likely to be found in a variety of states, therefore a reduction in the vesting period in the proposed circumstances is unlikely to result in the acceleration of the scheme as a whole.  

3. Electronic service of notices

The consultation acknowledges that service of the various statutory notices required in relation to a CPO, (which currently has to be undertaken either by post or by hand), is "resource-intensive", costly and often results in delay, slowing the overall CPO process and the realisation of public benefit. 

The need to further digitise the CPO process, including the service of notices, was investigated by a digital working group set up by the board of the Compulsory Purchase Association. The recommendations of this group have informed the Government’s proposals in relation to the digital service of notices. It's proposed that electronic service would be permitted where parties provide their consent, with electronic notices deemed served the next business day. In the event that parties are not prepared to agree the receipt of electronic notices then traditional service must be affected.  

It's unlikely that parties determined to frustrate a CPO will consent to the service of electronic notices, so this isn't a silver bullet in relation to the difficulties presented by traditional methods of service. However, this proposal is welcome news for energy promoters, and particularly those of large and linear schemes, which generally require the service of a large number of notices.  

Digitisation of the notification process would enable (potentially greatly) reduced usage of paper and further automation of the service process, which taken together has the potential to significantly reduce the associated cost for promoters and environmental impacts associated with the production of large volumes of paper notices. The deemed next working day service could also speed up the CPO process to a degree, particularly where all recipients consent to receipt of electronic notices, as various timescales such as objection and vesting periods are calculated from completion of service of relevant notices.  

4. Simplification of newspaper notices

It's necessary for a number of statutory notices, such as notice of making a CPO, to be published in the local press. The consultation cites examples of lengthy newspaper notices relating to CPOs which replicate the extensive schedules of the same, and seeks a view from consultees as to whether this is really necessary now that CPO documentation and notices must be published online, as well as placed on deposit at a suitable local venue. The Government’s proposal in this regard is to amend the associated legislation to replace the requirement for a complete description of all land included within a CPO, with a requirement to include either the postal address or a description of the location where a postal address is unavailable.  

Simplifying the requisite information for newspaper notices would reduce administrative costs particularly in relation to linear schemes, which are not uncommon in the energy sector and often contain a great deal of land. However, it's worth noting that the Government’s proposals include the retention of the existing requirement for postal notices, notices published online and those affixed to land to include a full description of all the land included within a CPO. So whilst the proposed changes would serve to reduce to size of the press notice and reduce the associated publication cost, the practical impact for large and linear schemes (the latter often requiring a large number of site notices and documents to be placed on deposit at multiple locations along the route) will be minimal in the context of all CPO notices required to be served.  

A copy of the full consultation document can be accessed using the following link: Compulsory Purchase Process and Compensation Reforms - GOV.UK, the consultation closes at 23:59 on 13 February 2025 – so there's still time to have your say. 

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