Source · Select Committees · Public Accounts Committee
Recommendation 5
5
Accepted
Publish comprehensive plan for HS2 land and property disposal balancing taxpayer and local needs
Conclusion
The Department and HS2 Ltd do not yet know when they will dispose of land and property no longer needed and how they will balance different interests. The Department has spent over £600 million on land and property (in 2019 prices) along the section of the route that has now been cancelled. Part of this land may be required for other projects, such as Northern Powerhouse Rail, but the Department is looking to release land for other purposes quickly. When disposing of the land, HS2 Ltd and the Department will need to ensure that this is done in a way that protects the taxpayer as well as local interests, while also being fair to those who have had their properties compulsorily purchased. The sale of land and property can take many years, with individuals seeking to buy back land no longer needed for Phase 1 finding the process difficult and lengthy. There is a moral expectation that government should expedite opportunities for people who wish to buy back their land and property where they have been required to sell it. Recommendation 5: The Department and HS2 Ltd should, alongside the Treasury Minute response, report to the Committee their plan for land and property disposal. This plan should include: • how they will factor in the need for value for money for the taxpayer and the needs of those who have been affected; and • how they will learn the lessons from land and property sales already occurring as part of Phase 1 and from other property disposal programmes across government.
Government Response Summary
The government disagrees with reporting its land and property disposal plan alongside the Treasury Minute response, stating it is not yet ready. However, it commits to sharing the plan by summer 2024, which will include balancing taxpayer value for money, the needs of affected parties, and lessons learned from past disposals.
Government Response
Accepted
HM Government
Accepted
The government disagrees with the Committee’s recommendation. The department is not yet able to share its plan with the Committee but will do so by summer 2024. The department is developing the programme for selling land acquired for Phase 2 that is no longer required and it will take some time to ensure this programme is properly set up. The programme will ensure it both delivers value for money for the taxpayer and considers the interests of those who have been affected, and local communities more generally; for example, the government will ensure the programme does not disrupt local property markets. The government recognises that achieving value for money will require considering both financial considerations, in particular the sale price achieved and the cost of managing properties in the interim, and wider factors, including acting in accordance with broader government policy considerations such as in relation to housing and economic development. The government recognises the particular concerns of owners who have had land compulsorily acquired which is no longer needed and will look to expedite work relating to this land as the disposals programme is developed, acting in accordance with the Crichel Down Rules. Although there have been only a small number of land and property sales on Phase 1 so far, lessons learnt will be applied as the much larger Phase 2 programme is developed. The department will draw on relevant expertise across government.