11 March 2025, 09:13
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Farmers across the UK could be forced to sell fields at a lower value than the going market rate under proposals put forward by the government to build new homes and hospitals.
Described as a “land grab” by some, the proposals put forward by Labour form part of the Government’s Planning and Infrastructure Bill.
The measures could see councils given greater powers to acquire land through compulsory purchase orders (CPO).
It would mean that land would be purchased at its current value, as opposed to the land’s potential worth if developed – a rule factored in under the current system.
Speaking with Nick Ferrari at Breakfast, Housing minister Matthew Pennycook told LBC: “We do need to unlock more land in the right places.”
However, he insisted: “It won’t be ministers deciding this, we want local authorities to make greater use of compulsory purchase powers”.
Matthew Pennycook: ‘We need to unlock more land in the right places’
The claims made by The Telegraph on Tuesday suggest the new proposals could see landowners – including farmers, compelled to sell their fields to the government at a fraction of the market rate.
Current rules mean that land identified as desirable by local authorities and acquired using compulsory purchase orders are acquired at a higher rate due to the potential increase in value as a result of development.
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The government says any such land would then be used to build much needed new homes, hospitals or schools.
Speaking on Tuesday, Pennycook added that the bill would help “streamline the delivery of new homes”.
“The Planning and Infrastructure Bill which is introduced today is the next step in (our) programme of reform,” he told Nick.
“It is a flagship piece of legislation, it will be transformative in terms of how we build things in this country and it will speed up and streamline the delivery of new homes and critical infrastructure: essentially a more certain and faster process for consenting nationally significant infrastructure projects…
“A new Nature Recovery Fund…and overhauling the local planning system, modernising planning committees”.
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It follows recent plans by Rachel Reeves to increase employer NI contributions, in addition to the last Budget’s 20 per cent inheritance tax hike affecting farming community.
Under the government plans, those living in homes close to new pylons could receive payments of £250 a year.
The measure reportedly makes it harder for communities to block energy infrastructure projects in the UK courts.
The rule will not apply to those living beside existing pylons that have already been constructed.
