Source · Select Committees · Public Accounts Committee
Recommendation 28
28
Rejected
Balancing fairness to taxpayers and affected individuals crucial for Phase 2 land disposal.
Recommendation
We highlighted the argument for there being a moral expectation that, having cancelled Phase 2, the Government should expedite the opportunity for people to be able to buy back their house or their property. HS2 Ltd acknowledged the point while also not wanting to commit to any timescales given the rules it had to follow and the 50 Qq 161–3 51 Q 166 52 Qq 166, 167 53 Q 168 54 Qq 50, 52 55 Q 122 56 Q 123 HS2 and Euston 17 dependency on steers from Ministers. We also highlighted the argument for maximising return to the taxpayer, which could mean hanging on to property until the market improved. The Department said it was keen to ensure it respected that people had been individually impacted. It emphasised the need to consider both fairness to taxpayers and fairness to affected individuals, on which it would have to put advice to Ministers on the right balance between the two, and then enact the steer received.57 The Department’s Permanent Secretary and Accounting Officer said that, were she to be asked by Ministers to proceed in a way that was not consistent with the tests of Managing Public Money, then she would give that advice and seek a ministerial direction if required.58
Government Response Summary
The government explicitly disagrees with the recommendation to expedite buy-back opportunities for former Phase 2 land owners, stating it is developing a comprehensive land disposal programme and will share its plan by summer 2024, while committing to 'look to expedite work' related to compulsorily acquired land within that programme.
Government Response
Rejected
HM Government
Rejected
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.