s.10 Compulsory Purchase Act 1965 - Injurious Affection where no land is taken.
s.10 of the Compulsory Purchase Act 1965 is a re-enactment of s. 68 of the Lands Clauses Consolidation Act 1845, but its meaning comes from judicial law and not from the wording of the statute. The interpretation is summarised into four rules in Metropolitan Board of Works v McCarthy (1874), which are known as the McCarthy rules.
There are two problems with this provision which the CPA feel require reform. The first is that compensation is restricted to reduction in the value of land (temporarily or permanently) and so consequential losses such as trading impacts and other "disturbance" items cannot be claimed.
The second problem is that it is very difficult to establish whether or not a claim satisfies the McCarthy rules, particularly the second rule which states that the injury for which compensation is claimed must have been actionable at law in the absence of statutory authority. It is this requirement that needs clarification to enable both affected owners and occupiers and Acquiring Authorities enjoy certainty over their rights and responsibilities.
Current Position
Barry Denyer Green's paper for s.10 reform was submitted to DCLG on 18th June 2007 with a view to reform being included in the Planning Act 2008. The view of DCLG was that the subject was not within the scope of the Bill.
Due to the scale of the change proposed, this reform will require primary legislation and this means inclusion in a future Government Bill with suitable scope. In order to ensure that we are ready to promote a reform when a suitable Bill comes forward, a further level of detail is being developed on the exact reform to be pursued. The proposals are at an early stage and comment from members is welcomed.
We also anticipate that DCLG will require evidence of the problems being caused by the current system. We therefore welcome any examples of problems encountered by members in relation to the quantum of or eligibility for s.10 compensation.
Documents
Paper submitted to DCLG on 18th June 2007
Member(s) responsible:
Paul Astbury, CPA Chairman