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Appeal Court gives green light for “lane rental”

The High Court has given the green light to regulations, approved by the Secretary of State for Transport, that authorise Camden London Borough Council to charge companies for works involving the disruption of their public highways.

The court has dismissed a challenge by BT to a £12,100 claim in respect of “lane rental” charges for roadworks. BT did not challenge the calculation of the charges, but claimed that they had been unlawfully made.

Under the scheme, the charges, approved by the Secretary of State, provided for sums of up to £650 per day for remedial works on major routes, and up to £200 per day on minor roads.

Javan Herberg, counsel for BT, said that the charges, unrelated to any concept of blame or fault, amounted to a tax for occupying the highway, whereas he argued that the sole motive of the Secretary of State in calculating any charge was the minimisation of disruption.

Bell J has ruled that the Street Works (Charges for Occupation of the Highway)(England) (London Borough of Camden) Order 2002 and the Lane Rental Scheme, submitted by Camden to the Secretary of State, and under which Camden charged BT, were both valid.

He said that his decision would not only decide the present claim but would also “act as a lead on the validity of any similar charges made by any other local highway authorities that the Secretary of State may authorise to levy lane rental charges in the future”.

Camden London Borough Council v British Telecommunications plc Queen’s Bench Division (Bell J) 21 March 2003.

References: PLS News 24/03/03

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