There is to be no change to the basic framework of the existing law of planning compensation. This is the conclusion of a recently published DOE consultation paper.
The Government pledged to review compensation provisions last year while the Town and Country Planning (Compensation) Act 1985 was being passed. During its passage concern was shown about the compensation allowed for under the 1971 Act.
The consultation paper analyses, among others, section 165 of the 1971 Act, which allows for compensation when an adverse decision is given on a planning application which was previously given general permission by a development order and where the general permission has been withdrawn.
The 1985 Act restricts this entitlement to applications for compensation made within one year of the withdrawal of permission.
However, if a development order permission is withdrawn by a direction, for example under Article 4 of the General Development Order, the restriction in the 1985 Act does not apply.
Arguments have been put forward either to lengthen the time during which compensation can be applied for to two years or to do away with it altogether.
The Government thinks that the one-year period strikes the right balance. It has said that in special cases, for example where a particular type of development has a long lead time, it would consider a longer period between the date when the amendment or revocation is put before Parliament and the date when it comes into effect.
Comments are invited on the consultation paper, to be sent to the DOE, Room C13/11, 2 Marsham Street, London SW1P 3EB, by June 30.
