BRITAIN’S LAND

Evening Star, Issue 25994, 8 January 1947, Page 5

BRITAIN’S LAND

NO NATIONALISATION BUT SWEEPIN6 CHANCES PROPOSED COMMUNITY INTERESTS TO GOVERN DEVELOPMENTS (Rec. 2 p.m.) LONDON, Jan. 7. Land in Britain is not to be nationalised, but sweeping controversial changes are proposed in the Town and Country Planning Bill published to-day, says Reuter’s lobbyist. Mr L. Silkin will move the .second reading at the end of January, and it may be Jaw by July. The Bill defines two elements in land values, first the _ value for the purpose for which it has been used, which is defined as existing use value; secondly, by tbe value for potentially more profitable use, for example the development of farm land as Duilding estates or replacement of houses' by shops or cinemas, which is defined as development value. The Bill provides: (1) That no land development may occur without permission. The landowner will be free to .continue using the land for existing purposes, but the question whether the land may be developed will be governed by the interests of the community. (2) When permission to develop is refused no compensation will be payable except in a few special cases.. (3) When development is permitted any resulting increase in the land! value will be collected by the State as a development charge which is payable before development can be carried out. Any increase, in value which accrues without development will remain with the owner. The effect of these three provisions together is that the market value of the land will be reduced broadly to the value attributable to its present use. Landowners will thus lose their development values immediately, and the Bill provides for payment to them on tfiis account. (4) A Central Land Board will bs established, with the prime duty of the collection and reollocating of development charges.

•COMPENSATION FOR DEVELOPMENT VALUE LOSS. An accompanying White Paper say* the Government’s view is that when community activities increase the existing value of land, the betterment should be collected by the State instead of by the landowner, and that owners who lose development value . through the Bill are not entitled to compensation as a legal right. The Government recognises, however, that if no payments are made hardship could be caused to many who acquired the land in expectation of development. A capital sum of £300,000,000, therefore, will be made available to meet claims for payment made to the Central Land Board. The effect of the development charge system will be that land bought for • development will change hands at about its face value for existing use. The purchaser, in reckoning how much he can afford to pay, will take into account what he will have to pay to the Central Land Board. In total he will pay no more than he would pay at present, but, instead of paying all to the owner, he will pay part to the owner and part to the Central Land Board. HOUSES NOT INVOLVED. Reuter’s lobbyist says that tha Bill will not touch the average person. It is officially calculated that 85 per cent, of houses and other properties in the United Kirigdom are not involved, because they are not connected with development projects. While taking away from the owners the development value of their land, the Bill leaves them its existing value. Farmers can continue farming and th# ordinary householder can continue normal life. The position of the private land developer is also unchanged, except that he will have to pay a proportion of the price of the land, as the Development Charge Bill does not interfere with a person selling his house at a profit, as no development is involved if a house is changing hands and.its use is not changed. . This compensation and betterment problem has been regarded as the great obstacle. Once it is out of the w.ay the new planning scheme can go ahead. This provides that local planning authorities will have to submit development schemes within, three years. These plans will be reviewed every hve County Councils for the first time are given direct planning functions. All purchases. of land for public use will be at the existing use value. Ihe 1939 standard is being retained. Outdoor advertisements, such as hoardings, will be controlled, and mstorio buildings preserved.