Source · Select Committees · Public Accounts Committee
Recommendation 27
27
Deferred
Releasing acquired Phase 2 land faces complex and time-consuming 'Crichel Down' rules.
Conclusion
The Department said it needed to assess what land that had been acquired for Phase 2b might need to be retained for Northern Powerhouse Rail and for some local interests, where the local authorities would like to retain the land. It said that the Department and HS2 Ltd would need to make careful value for money assessments on releasing land back to the market in a way that meets local interests and protects the taxpayer. HS2 Ltd emphasised that release of Phase 2 land would take some time and not be a quick process, notably because of the six tests that made up the ‘Crichel Down’ rules.55 HS2 Ltd said that, assuming the six tests were satisfied, former owners who had been compulsorily purchased would get first refusal to buy back at current market value.56
Government Response Summary
The government states it disagrees, but explains it is developing a programme for selling acquired Phase 2 land, which will balance value for money and local interests, and aims to share its plan by summer 2024.
Government Response
Deferred
HM Government
Deferred
5.1 The government disagrees with the Committee’s recommendation. 5.2 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. 5.3 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. 5.4 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. 5.5 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. 5.6 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.